POSTED BY Jig ON January 12, 2012 6:04 pm COMMENTS (17)

I am 32 yr old.
I will be gettting 1.5 lac within10 days. Should i invest as lumsum or through SIP?
which fund i should select if i have to start my retirement planning using this liquid amount?

Thanks & Regards


17 replies on this article “WHERE TO INVEST LIQUID”

  1. Dear Jig, Had you received any confirmation mail from http://www.fundsindia.com regarding the successful uploading of your documents?

    Please write a mail to the customer care & confirm the same.

    It may take some time so waiting is not a bad option for few more days.



  2. Jig says:

    I am trying to open ac with fundsindia and yesterday i have uploaded the documents for verification. They claimed that we can start investing within 1 hour but its 24 hours and i didnt get any response about documents verification.
    Well, i am waiting…and i want to do it correct at one go. Not worry if it is taking time..


  3. Dear Jig, in my view, if possible to you please invest in liquid funds of your other AMCs & initiate switch (Read STP) to your Eq. MFs of the same AMCs.

    If it’s not possible within that Kotak account, for MFs you may opt for http://www.fundsindia.com

    Disclosure – I’m investing my own money in MFs using http://www.fundsindia.com



  4. Dear Jig, If you are using an online broker like http://www.fundsindia.com, no need to redeem & then reinvest, You may simply create a STP to transfer money from HDFC Liquid to HDFC Top 200 (for example) at your predefined interval say weekly or mly & rest work ‘ll be done automatically by the system.



    1. Jig says:

      I am investing in some other AMC SIP and put my liquid in HDFC Liquid fund. So i have to redeem and so my SIP will be done from my Demat.
      Note: I am having kotak secuirty PINS account where i can invest in equity,MF directly which also directly link to my NRE saving A/c.
      Is this look fine ? or any other best way of keep it simple and easy to monitor?



  5. Jig says:

    I put some of my liquid fund in HDFC liquid fund. and will manually transfer/withdraw to my MF in Demat to invest in my regular SIPs.
    Is this make sense?

  6. Dear Dominic OPrakash, there is no difference from taxation point of view. The difference lies in the underlying assets & due to which the returns may be different based upon the interest rate movement.



  7. Abhishek says:

    Hi Dominic,

    The funds you have invested, are NOT liquid Funds but are Income Funds. If you are looking for liquid funds, go for HDFC Cash Management Treasury Advantage Fund OR IDFC MMF TP.


    1. Dominic Prakash says:


      Thanks for your response. I am not clear on Liquid and Income fund. Does it make any difference in Tax calculation.

      HDFC Short Term Opportunities Debt: Ultra Short Term
      IDFC Dynamic Bond Plan A Debt: Income

      In value research both of them under the category Debt. What is the difference?

      If needed I’ll post this question as a new thread.

  8. Dear Jig, here are the liquid/short term funds for your ready reference.

    HDFC Cash management savings savings
    Quantum Liquid
    Templeton India Cash Management account



  9. Dear Dominic, what you are suggesting is defeating the very purpose of Debt – STP – Eq. We are investing in liquid funds to earn a slightly better return than SB account for idle money.

    For the given example, the question of too many liquid funds does not arise as all the work ‘ll be done under a common folio no. for each of the AMC.



  10. Dominic Prakash says:

    HDFC Short Term Opportunities
    IDFC Dynamic Bond Fund

    I have it in the above two liquid fund and I SWP to my bank account and from there I have SIP running to different funds. So you need not have too many Liquid funds.

  11. Jig says:

    Thanks ashal once again,
    CAn you please named those liquid funds too as i dont have any idea about liquid funds. I never invested before in liquid funds.

  12. Dear Jig, yes your understanding is right. Invest 50K in 3 liquid funds of the said AMCs & initiate weekly STP of 1K in each of the Eq. funds discussed. As you are already investing in HDFC Top 200, this does not mean that you should not invest more in this fund when the going is good.



  13. Jig says:

    thanks everyone for reply ,
    You mean 50000 in each of this fund.so i have to invest 50K liquid fund of each AMC and then do STP in above said funds. am i taking it right?
    I am already investing in HDFC 200 through SIP route.
    I am having 2.5 lac as emergency fund. all in NRE/NRO FD.

    Thanks once again

  14. Dear Jig, as the amount is to be invested for retirement purpose & that too for some 25-30Y away goal, my take ‘ll be to invest the amount in the choice of your Eq. MFs using Debt fund – STP – Eq. fund route. Complete the investment within next 4-6 months using STP.

    Choice of Eq. funds – HDFC Top 200, Quantum Long term Eq. fund & Franklin India Bluechip.

    Invest 50K in each of these funds. Use 1K weekly STP to invest. On the days of major correction in sensex say 400 or 500 points, invest 5K lump sum.



  15. TheZionView says:


    Before Investing you should get yourself protected.

    Do you have emergency fund? No,then use this amount ,Split it into 2 put half in Liquid MF and rest in your Sweep in or Savings Account.

    If you have EF in place then you should put this money in a liquid MF and Create a MF pack for your goals and do a SWP(systematic withdrawal plan).

    The SWP can span upto 6 months.

    For MF Investment you can look at Fundsindia.com or Moneysights.com

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