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Liquid Fund Vs Saving Account


Did You Know?

You can invest in liquid funds for a few days or months depending on your financial needs. The fund returns are according to the prevailing market rates.

For most investors, a savings bank account becomes the preferred destination to park their surplus funds. Even when they need to build a contingency fund, they cannot think of better havens. However, leaving your short-term funds in a savings bank account is the least efficient way from an investment standpoint.

“Is there a better a better way to deal with surplus cash?”

Yes Of course! Invest your short-term surplus funds in “Liquid Funds” and earn better, much higher than the bank’s savings rates!

Liquid Fund is a type of debt fund. These are open-ended schemes that have short-term investment horizons. These open-ended schemes have a short-term investment horizon and invest primarily in money market instruments like certificates of deposits, treasury bills, and commercial paper of up to 91 days.

Who should put money in Liquid Funds?

Every salaried individual should create a kitty equivalent to their 3 months’ salary under the “Liquid Fund”. It is also the best place to save the funds required for insurance, house tax, etc. Some smart investors also create special kitties for their annual tax-saving commitment. You can choose to invest any surplus Liquid funds that are not required for a minimum of 5 days or so.

With almost equivalent safety of a Bank savings account, you can enjoy higher returns through Liquid funds.

We bring to you our special feature named “My Purse” which uses Liquid funds in the background and provides you with a great experience in managing your short-term surplus.