Invest in Best Liquid Funds or leave my money in a savings account is the big Question?
What are liquid funds?
Liquid funds are a category of debt mutual funds. These funds invest in debt securities which have maturity, up to 91 days.
6 Reasons to invest in the Best liquid funds 2018
- You will earn 6% to 8% on your money, which is higher than the 3.5 per cent offered by most banks on their savings account.
- You earn this money on a daily basis, unlike a savings account which gives you interest on the lowest balance or average balance in a month kept in your account. So if you have 500,000 in your account, but your average balance or lowest balance is 100,000 you earn return on 100,000 rather 500,000.
- There is no risk to your principal amount. In fact your funds are as safe in a liquid fund as in a bank.
- No lock in period. If you exit, your funds are credited to your account the next day if redeemed before 3 pm.
- Interest earned is credited to you on a daily basis as compared to a bank account which gives you interest earned on a quarterly basis or every six months.
- No exit or entry load.
When to invest in Best liquid funds 2018
- Invest for a period of 1 day to 3 months (you can even do it for one year)
- Park your emergency funds in liquid funds
- If you money kept aside to pay school fees, EMIs or buy real estate invest it in liquid funds for short term basis.
- Use Liquid Funds for STP (Systematic Transfer Plan) and reduce your risk in lump sum investing in equity funds.
- Use Liquid Funds instead of booking Fixed Deposits as they have no lock in period, no penalty and are more tax effective.
Best Liquid Funds 2018
- Reliance Low Duration Fund (earlier name Reliance Liquid -Treasury Plan)
- SBI Saving Plan (Exit load if exited in 3 days)
- HDFC Cash Management Fund – Treasury Advantage Plan
So go ahead, sign up with EzeeHouse.com and contact us to start investing in liquid mutual funds whether you are an individual or a business.
We also have a recommendation for the Best mutual funds for Tax Exemption 2018. Click here to have a look.