need Knowledge about LIQUID Mutual funds

POSTED BY SANDEEP JAIN ON April 16, 2014 8:18 pm COMMENTS (3)

Hi Manish/ Nandish

Very Good evening to you both of you.

I would like to know more about Liquid funds, In the blogs, other websites and newspapers we have heard about but none of them given a concrete and complete information about them.

Also like to know what is the procedure to opt for them and at the same time which are the best Liquid funds available in the markets to invest in.

It would be great help if you can point out Cons and Pros of the same.

Please revert.

Thanks & Regards,

Sandeep

3 replies on this article “need Knowledge about LIQUID Mutual funds”

  1. ashalanshu says:

    Dear Sandeep, why are you interested in liquid funds? What is so special in these funds?

    Thanks

    Ashal

  2. Hemanth Chandra says:

    Just google ‘What are Liquid Funds’ and ‘Liquid Funds vs savings account’. You will get a lot of articles with clear explanation.

    Below is one of the articles.

    http://articles.economictimes.indiatimes.com/2012-04-17/news/31355394_1_ultra-short-term-bond-liquid-funds-savings-bank-account

    Liquid funds are a type of mutual funds. So, investing in them is same as investing in mutual funds.

    Below is a link where u can find liquid funds available in the market.

    http://www.valueresearchonline.com/funds/fundSelector/default.asp?exc=susp%2Cdir%2Cclose&cat=1

    Regards,
    Hemanth.

  3. Viren Phansalkar says:

    See if this helps:

    Liquid Fund: These are the mutual funds which invest in money market instruments. These instruments are treasury bills, CDs and CPs. The maturity of these instruments are generally less than 91 days. This ensures liquidity and safety of the capital as well. If currently, you invest in particular MF, go for liquid fund of that AMC.
    These funds do not have exit loads and you can get your money in T+2 days max in your account. (yes, copy paste from my blog)

    Pros: Very high probability of capital protection. You can redeem the money within T+1 or max by T+2 days. These are the 2 reasons, why they qualify for being ideal for emergency funds.

    Cons: They are illiquid as compared to SB account. Interest earned is less as compared to other MFs (but the intention of buying this is different, hence interest part has to be ignored)

    Procedure: Just visit the online website of the AMC where you already have other MFs. I think, best AMC to buy liquid fund is from the existing AMC itself.

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