What are liquid funds – This is what you should know
Liquid funds invest in highly liquid short-term money market instruments like treasury bills, government securities, certificates of deposit and commercial paper. They aim to grow your money while providing stability of principal and liquidity. Liquid funds are a safe investment option with low risk and potential for better returns than savings accounts.
Why to invest in liquid funds?
Earn higher returns
Liquid funds currently offer 6-8% annual returns which beat most savings accounts. They can generate income through dividends and capital gains over the short term.
Preserve capital
Liquid funds invest in highly rated securities with maturity ...