Are short term funds a good idea?

Answer by  BingLi (48)

Short term funds are a worthwhile option during times where interest rates are expected to rise in the near future. In situations where interest rates are expected to trend down, long term funds would be a better option. Another reason for utilizing short term funds would be when liquidity is required at very short notice.

Answer by  idiotjones (705)

This largely depends on the individual needs and goals, age, tolerance to risk, etc. Generally, a short term fund, is higher risk with the potential of greater reward however. The volatility is not suited for all investors, but those who can accept the risks.