When should you invest in Liquid Funds?

Ideally one should invest in liquid funds, when there is surplus money lying idle and needs to be deployed for a short period of time. These funds would be invested in very short term debt & money market instruments (up to 91 days), which are highly rated, providing easy liquidity and returns in line with that prevailing at the market conditions at the shorter end of the yield curve

Benefits:

• Minimal capital Risk: liquid funds are highly rated, signifying minimum loss from credit defaults. The scheme invests in instruments with a maturity profile of 91 days or below. The very short maturity of the investments helps minimize the MTM volatility in the portfolio thus minimizing capital risk

• Return Efficiency: Investors start earning returns from the date of investment itself thus minimizing any return leakage.

• Optimizing cash management: Investors could even invest for as less as one day, in order to optimally use the fund for their cash management purposes

• Real Time Redemption

• No entry and exit loads

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.

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