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Starting your own business may call for some initial seed capital apart from your time and focus on the venture. When one plans to start a business, it is always helpful to have some accumulated savings.
Flexible Investment Horizon
Even while one may have invested in a particular mutual fund scheme with a specific investment horizon, the investments are generally not locked-in, except for ELSS (Equity Linked Savings Schemes) or Solution-Oriented schemes. As such, one carries the flexibility to redeem and liquidate the mutual fund investments when the need arises.
This flexibility can also incentivise the entrepreneurs to partially invest their surplus funds into mutual funds to invest into the business at an opportune time. The company may not need funds immediately, but the need may arise anytime.
