Is it good to invest in liquid funds?

Liquid funds are considered to least risky among all classes of debt funds as they mostly invest in high-quality fixed-income securities that mature soon. Therefore, these funds are suitable for risk-averse investors.

Which is the safest liquid fund?

Liquid Mutual Funds vs Liquid mutual funds have lowest interest rate risk and default risk. They are highly liquid and can be redeemed within a day. Hence, they are ideal for parking short term surplus cash or creating an emergency fund. Liquid mutual fund is the safest type of debt fund in India.

What are liquid funds and how do they work?

Liquid funds are high liquidity open-ended income schemes that invest in debt and money market instruments such as government securities, treasury bills and call money among others. These instruments have a maximum maturity period of 91 days and are considered safe because they mitigate interest rate volatility risk.

Should you invest in liquid or liquid assets?

If you want to invest but will need the money in the not-so-distant future, then highly liquid investments are ideal for you. Liquid investments are perfect for investing your money with little or no risk while knowing that you can still access the cash in the near future.

How to invest in liquid funds with instant credit?

Such instant credit is, however, restricted to Rs. 50,000 or 90\% of the investment value, whichever is lower, per day per investor. One can invest in liquid funds by physically visiting any official Points of Acceptance and submitting the application form.

What are some examples of highly liquid investments?

Bonds are also examples of highly liquid investments and can be sold relatively quickly with little or no impact on their market value. They are an excellent option for making passive income and includes: Corporate Bonds Funds (Short-term) These are highly liquid since they can be bought and sold on any open stock market day.