Travel Planner – Invest In Mutual Funds To Fund Your Dream Vacation

Each one of us has different goals that are a combination of short term, medium and long term ones. To achieve your objectives, you will need strong financial backing that you will manage through appropriate investments. Planning for that dream vacation is one such goal and you need to identify the right investment vehicle in the form of mutual funds to help you achieve this goal.

Asset classes vary when it comes to giving you the returns that you expect. Choosing to invest in real estate or art may be a right strategy for somebody who is willing to wait for 7-10 years. Similarly somebody may find investment in a debt fund ideal when they are close to retirement as they would not want to take any risks with their hard earned money. Those who are in their 30s may find investments in high risk equity suiting them. You have to take the call now on where you wish to invest since you have decided to take that dream holiday with your family after 3 years.

As a travel planner for your family’s dream vacation, you have the responsibility of ensuring you have chosen the right destination, are well aware of the budget you will have to provide for after taking into consideration any discounts and early bird offers you might be able to get for the ticket and accommodation; sightseeing and so on. You know the state of your current finances and have to plan for this trip you wish to take over the next 3 years.

One of the best options you have as the travel planner is investment in mutual funds. It has been a wise decision on your part to avoid taking personal loans or using your credit card in the pursuit of instant gratification towards taking that vacation right now. Today, for the patient investor who is willing to bide his time for 3-5 years, the stock market represents the best returns opportunity.

Gone are the days when any investment in the stock market was deemed too risky. Today, you have participation through mutual funds into the markets led by fund managers who are better informed than ever before and seek to deliver the highest returns for their individual funds. The mutual fund investment thus is an excellent option for those wary of directly investing into the stock market.

Amidst the plethora of mutual fund varieties, it may be a challenge picking the right ones. But having decided on your goal of accumulating a particular sum of money for your dream holiday, you will do well to choose a couple of mutual funds that have a good record of having delivered returns over a 3-5 year period. Though past achievements are no guarantee for the future, it would still give you some direction and you can take the plunge, investing in them through the Systematic Investment Plan or SIP method.

The author is a well-known financial advisor and an avid traveler. He usually gives necessary recommendations related to Travel Planner in any local area or abroad.