Money in your Savings Account? Not Happening!

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Money-in-your-Savings-Account

And the Happy Moment is here ‘Salary Credited’. Well, it should be, we all work so hard to earn our bread. However, most of us don’t have the time to make good use of that money i.e. by investing it. We just let it relax in our savings account where it earns a nominal rate of interest. But, if you invest in better options like liquid funds, you can earn a bit more. Curious to know how? Here:

Foremost, what are Mutual Funds?

Are you scared of mutual funds? Don’t be. They are reliable financial products that can provide you with better returns in the short-term as well as the long-term, only if you end up choosing the right funds. How about returns? Let’s consider the returns of LIQUID FUNDS that are good for short-term investment.

Wait! Don’t know what are liquid funds? Here:

A liquid fund is said to be a debt mutual fund scheme. You can put them as a backup plan if you have excess cash and think you might need the cash in a few days or weeks or months.

Invested in?

Liquid Funds are invested in money market instruments such as treasury bills, government securities and call money which have very low risk. In addition, they invest in non-government paper – mainly commercial paper and CDs (Certificate of Deposit) that carry low credit risk for short duration.

What is Lock-in-Period?

Happiness is No Lock-in-Period.

NOTE: Liquid funds can be invested in instruments up to a maturity of 91 days.

Features?

  • Flexibility to Entry & Exit
  • Low Expense Ratio (as compared to equity/debt funds)
  • Easy Liquidation as the name says
  • Good Returns than Savings Bank Rate or Fixed Account
  • Low Risk
  • Instant redemption

When to Use?

  • To park any lumpsum you have received
  • The perfect saving for short-term goals
  • Creating an emergency fund for ‘uninvited crisis’ which can be withdrawn without any hurdle

Tax on Liquid Funds?

The returns are taxable as per the tax bracket of an investor.

Choosing Liquid Mutual Funds

The liquid mutual fund comes under various categories for different investor. Each investor can look upon their risk appetite as well as their pre-defined goals to invest. Here is the list of top 5 liquid mutual funds. Take your pick:

  1. Aditya Birla SL Liquid Fund(G)-Direct Plan
  2. Baroda Pioneer Liquid Fund(G)-Direct Plan
  3. IDBI Liquid Fund(G)-Direct Plan
  4. Axis Liquid Fund (G)- Direct Plan
  5. Essel Liquid Fund (G)- Direct Plan

Like said, hopefully, you know why your money should NOT be in the ‘Savings Account’? It’s time to check some online Liquid Mutual Fund options at Gulaq . You can invest as little as INR 500 a month. Choose the right fund for better returns.

Happy Investing!

 

Disclaimer: Mutual fund Investments are subject to market risks. Please read the scheme documents carefully before investing. 

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