What are Liquid Funds?

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What are Liquid Funds
What are Liquid Funds

A liquid fund is a debt mutual fund scheme. You use it 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 that hold ‘least’ amount of risk

What is the Lock-in-Period?

No Lock-in-Period. Liquid funds can be invested in instruments up to a maturity of 91 days.

Features?

· Flexibility to Entry & Exit

· Low Expense Ratio (compared to equity/debt funds)

· Easy Liquidation

· Good Returns than Savings Bank Rate

· Low Risk

· Instant redemption

When to Use?

· To park any lumpsum you have received

· Saving for short-term goals

· Creating an emergency fund which can be withdrawn easily

· To invest in high-yielding schemes (Systematic Transfer Plan)

Tax on Liquid Funds?

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

 

*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.

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