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Why you should choose liquid funds over bank deposits to park your idle money?

Investors are complaining that the interest rate on savings account deposits has not gone up much despite banks and financial institutions announcing a hike in fixed and recurring deposit rates.

Section 80TTA allows individuals to deduct up to Rupees 10,000 from taxable income on savings bank account interest.

Liquid funds are a category of debt mutual fund schemes that invest primarily in money market instruments with a residual maturity of less than or equal to 91 days.

Liquid funds provide higher yields and capital safety while also maintaining high liquidity. 

Ideal for investors with a short investment horizon and low-risk tolerance.

SEBI has taken regulatory steps to reduce credit risk in liquid funds by limiting exposure to single sectors.

Liquid funds experience no significant losses because they invest in fixed-income securities with high credit ratings. 

Investors should be aware that liquid funds charge an exit load for redemptions made within seven days of investing. 

Short-term and long-term capital gains on liquid funds are taxable.

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There is so much confusion over allocating money to savings deposits versus fixed deposits versus liquid funds. In most cases, ignorance about liquid funds forces investors to be content with bank deposits.

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Why you should choose liquid funds over bank deposits to park your idle money?

There is so much confusion over allocating money to savings deposits versus fixed deposits versus liquid funds. In most cases, ignorance about liquid funds forces investors to be content with bank deposits.

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