LIQUID FUNDS
attractive alternate to saving deposits
What The term liquid is attached to this fund because it has the ability to get converted into cash as when required. Liquid funds are the category of mutual fund which invests primarily in money market instruments.
Features Invest in short term government securities Provide flexibility to invest or withdraw at any time Tax efficient schemes
How to choose Keep the fund risk return profile in mind Other factors like size of the fund, credit quality of underlying securities and track record of the fund house should also be kept in mind.
Benefits Low risk factor No entry and exit load No lock in period Different SIP investment plans Higher returns
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