Investor these days invest in various funds to diversify their portfolio. The diversification of the portfolio not only provide protection against the risk, but also helps in generating greater returns. An investor can invest in stocks, bonds, ETF or mutual fund to diversify their portfolio. The mutual fund is the simplest and easiest of options for an investor to diversify their portfolio. There are various ways to invest in liquid funds. One such way is either through the SIP or through liquid fund.
Liquid Fund is one of the best options for any type of investor to invest. It is mainly a debt fund, which invest their money in short term debt mutual fund like Treasury bills, Government bonds and call money. The key feature of the debt mutual fund is that they provide the investor secure capital protection. These funds invest in the scheme carry a maturity time of 91 days. Since liquid funds are mainly debt funds, they are non-volatile and changes in the NAV occur only due to changes in the interest rate, not on market volatility. This is very short term and not traded in the market. There are various categories of liquid mutual fund, one such is Insta redeem liquid fund. These mutual fund schemes in which unit can be redeemed instantly are generating a lot of investor interest. An investor can usually park their cash in liquid funds or ultra-short funds to maximize their returns. According to the value research, these Insta redemption funds can give returns of 8.69% and 7.15% respectively in the last one year. However, return on the investment are not guaranteed but they do provide a better option compared to zero interest to the current account holder and 4% on the saving account and 6% offered by private bank account. Moreover, premature withdrawal from a fixed deposit attracts a penalty.
In the case of Insta redemption, they can redeem their investment and the money reaches to their bank account within a few hours. That’s why investors are increasingly being attracted to liquid schemes of mutual funds, which offer instant redemption. Also, there are hardly any entry and exit load. Let’s look at the top 5 Insta redeem liquid funds in 2019:
- Reliance Liquid Fund Direct Growth.
- ICICI Prudential Liquid Fund Direct Plan-Growth
- Axis Liquid Direct Fund -Growth
- IDBI Liquid Fund Direct Growth
- Quantum Liquid Fund Direct Growth
To redeem the request, an investor can request through the online portal itself through which he has invested. They can redeem all their amount after a day. Financial planners always recommend Insta redeem liquid fund, as they carry low risk and volatility in the category of mutual funds. Most of the funds invest their money in the higher credit ratings. It’s always recommended to invest in these liquid funds rather than holding cash. An investor needs to keep track of the underlying portfolio quality before investing as a higher credit risk can lower your returns if it doesn’t materialize. These mutual fund scheme in which unit can be redeemed instantly are generating a lot of investor interest.
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*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.