Do you know that mutual funds can be used to park your money for a short duration too. It may be as short as 1 day, 2 days, a week, a fortnight, a month and so on. However, we cannot keep our money idle, we need to generate returns with safety and liquidity. So how does one achieve this objective. The answer lies in Liquid Funds - An ideal parking spot for surplus cash. But you will ask why Liquid Funds?
1. They invest in short term debt papers thus aiming for safety.
2. Liquid Funds aim to generate higher returns than savings account.
3. Investors get high liquidity as redemption proceeds are dispatched to investor's bank account within one business day.
4. Liquid funds have no exit load.
You can use Liquid Funds smartly for following purposes:
1. Creating an emergency fund or contingency fund.
2. Saving for your short term goals.
3. Investing in equity funds through Systematic Transfer Plan.
4. Parking temporary surplus cash.
Mutual funds can provide solutions for long term as well as short term needs. They offer comprehensive basket to meet our financial goals. Be wise, choose mutual funds.
