How to Build a Travel Fund: Choosing the Right SIP Strategy

Investing in a Systematic Investment Plan (SIP) is a popular way to save for short-term goals like holidays. However, financial experts caution that equity mutual fund SIPs carry market risk, making them less suitable for goals just 12 months away. A sharp market downturn close to the withdrawal date could significantly erode the accumulated corpus. For short-term travel goals, safer debt-oriented or liquid fund options may offer more predictable returns. Choosing the right fund category based on the investment horizon is key to protecting your holiday savings.
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