What are liquid funds? Who should invest in them?

 What are liquid funds? Who should invest in them?
Liquid Funds are open ended schemes and serve as an ideal option for investors with a short term investment horizon and a low risk appetite. So if you are wondering what to do with that surplus cash in your savings account, which you do not require in the near future ( say up to a year), liquid funds are definitely a good deal.

Returns from Liquid Funds
Liquid funds, offer returns that are more or less comparable to fixed deposits. Its historical returns have been around 8%. Plus they provide investors with the liquidity of a savings accounts.

Historical Data of Returns in Past One Year of Liquid Funds (Data taken from www.valueresearchonline.com as on September 12, 2011)

Escorts Liquid - 9.89%
Peerless Liquid Super Inst - 8.54%
Sahara Liquid Variable Pricing - 8.52%
BNP Paribas Overnight Institutional - 8.48%
Taurus Liquid Super Inst – 8.47%
Sahara Liquid Fixed Pricing – 8.47%

Read more about: invest, liquid funds, money market instruments, fixed deposits, tax
Story first published: Tuesday, September 13, 2011, 12:08 [IST]
Please Wait while comments are loading...
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

Thousands of Goodreturn readers receive our evening newsletter.
Have you subscribed?