Exploring the Liquid Funds

Hello Friends,

Let us learn more about Liquid Funds:-

Liquid Fund is of a Debt Mutual Fund Category where your money will be invested into the Fixed Income options like Government Securities, Treasury Bills, Commercial papers, and some secure Bonds.

The purpose of investment in Liquid Fund should be of short duration. The best part of these funds is that you get you money within 24 hours from the time of request of redemption. Some Liquid Funds transfer your money by IMPS and you get money within half an hour. Some AMCs offer a card like Debit Card for the purpose of redemption and customer can withdraw his or her money from the nearest ATMs of specified Banks. They may have a limit of withdrawal per day, hence I recommend the blog readers to verify it before you start investing in Liquid Funds.

If one has idle cash in saving bank account and this amount may be required anytime in upcoming days, then rather than keeping your money in Saving Bank Account, Liquid Fund is the better option for this investment. If a person is working professional then it has been advised to keep 6 months income in liquid format to tackle the situations like losing a job, Lockdown during epidemic, shut down of the company or by any other reasons by which persona may not get salary or a salary may be delayed. If a person is a businessman then he should keep business expenses of 2 years in a liquid format. For these two requirements liquid fund suits well and help to get the money whenever investor wants. The prompt action in redemption of  money makes this funds to be known as Insta Funds also.

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