- WHY LIQUID FUNDS?
- HOW DO I INVEST?
- WHERE DOSE MUTUAL FUND INVEST MY MONEY?
- CURRENT LIQUID FUND SCHEMES AVAILABLE
WHY LIQUID FUNDS?
Our savings account or current account do not pay us interest for keeping the funds overnight. The saving bank interest is negligible, and it is available only on average balance during the 6 months period.
Liquid funds floated by Mutual Funds earn you a small interest like say 5-6% for money kept overnight. If you have large liquid cash, say Rs. 1 lac and above transferring them overnight will earn you some interest. Specially if funds are going to remain idle on Saturday and Sunday.
HOW DO I INVEST?
If you invest through us before 12 noon you will get NAV of same day.
This window is open for investment up to 3 pm
After 12 noon you will get next day's NAV. NAV is Net asset value of the liquid fund
WHERE DOSE MUTUAL FUND INVEST MY MONEY?
Your funds are invested in Government securities issued by government of India and Trade Bills as well as commercial paper
This is a very safe product since the investment is done in government securities which are guaranteed by Government of India. There is no risk in relation of return of capital
There is no liquidity risk, unless there is run on mutual fund scheme ( as in happened in case of a particular liquid fund) However the Reserve Bank normally steps in and assists the fund by giving them liquidity to take care of the sudden run on the fund
Funds invested today can be recalled the next day, hence it is very liquid, hence it is called liquid funds
Returns are better than Bank deposits and lower than fixed deposits since the underlying assets in the fund are more secure and liquid government paper
CURRENT LIQUID FUND SCHEMES AVAILABLE
Our Research department recommends Liquid Funds