With so many types of mutual funds available, one of the most asked questions is “what is liquid fund?”. Sh...
With so many types of mutual funds available, one of the most asked questions is “what is liquid fund?”. Short term debt funds that have a maturity period of 3 to 6 months are referred to as liquid mutual funds. These types of funds can be liquified and/or redeemed by investors on short notice periods, and the withdrawal request is processed within 24 hours.
Liquid funds are debt funds that are invested in short term market instruments such as call money, government securities, commercial paper, treasury bills, etc. Liquid funds hold the least amount of risk, and hence, are the most opted for option for the investors. Being very low risk, and hence, less volatile, liquid mutual funds are likely to not be moved around too much in the market, which gives the investors higher returns in tune of the interest which is usually between 7-9%. Mutual Funds Sahi Hai understands the dilemma of choosing the right liquid mutual funds, and in accordance with AMFI regulations, we help the investors by presenting them with schemes best suitable for them.
Liquid funds offer optimum safety, reasonably good returns, and full flexibility of redemption at any time, which makes them a better option than fixed deposits, especially for people who don’t know when they’s need to take out the money. Moreover, you can only keep your money in fixed deposits for a fixed period of time, and that could be troublesome for many investors.
Looking for the best liquid mutual funds schemes? We at MFSH are here to help you!