What is Liquid Funds? Learn More

Do You Have Extra Money On Hand Right Now? If You Can’t Decide What To Do With That Money, Liquid Funds Can Become Your New Investment Destination. You Can Keep Your Surplus Money In This Fund. Then Decide Within A Week Or A Month Where You Are Going To Invest Or Spend That Money. Until then You Can Keep Money In This Debt Mutual Fund

What is Liquid Funds?
What is Liquid Funds

Liquid Funds: Mutual funds are Increasing In Popularity Every Day. Many People Of The Country Are Enthusiastic About Investing In Mutual Funds. Liquid Funds Are A Part Of This Mutual Fund. Know What It Is? Let’s Take A Look.

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What is Liquid Funds?

These Funds Are Called Open-ended Debt Mutual Funds. Investors Keep Money Here For a Very Short Period Of Time. This Fund Invests In Money Market Instruments Like Treasury Bills, Call Money, Commercial Paper. Investment In Liquid Funds Is Considered Less Risky. Because There Is No Extra Charge To Withdraw From This Fund. That Is, Investors Can Exit This Fund At Any Time. But For That They Don’t Have To Pay Any Penalty.

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Who Can Invest In This Fund?

Let’s Say You Have Surplus Funds. But You Don’t Know What To Do With It? If So, You Can Keep That Money In Liquid Scheme Right Now. After A Few Days Or A Week Or A Month When You Decide Where And How To Spend The Money, You Can Withdraw The Money From Here. Investors Also Keep Their Emergency Funds In This Fund.

Are Liquid Funds better than Fixed Deposits?

Investment Experts Consider The Comparison Between The Two To Be Irrelevant. They Said That In Fixed Deposits You Lock Your Money For A Certain Period Of Time. On The Other Hand, Liquid Funds Are More Like Your Savings Bank Account. In Case Of Savings Account, The Bank Pays You 3.5 Percent Interest. Compared To That, You Will Get Slightly Higher Interest Rate On Liquid Funds. Remember, The Return Of Liquid Funds Depends On The Market.

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Are Liquid Funds Completely Risk Free?

These Funds Are Considered To Be The Least Risky Among Debt Schemes. Because these funds are invested for a very short Period Of Time At High interest rates. However, As It Is Linked To The Market, The Possibility Of Risk Remains.

How Much Return Can Investors Expect Here?

Liquid Funds Offer A Higher Rate Of Interest Than Bank Savings Accounts. According To Informed Sources, Investors Earned Around 3.46 Per Cent Interest From Liquid Funds In The Last Financial Year.

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