Acquire Complete Information On Liquid Mutual Funds

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Liquid Funds

• The Next Step Towards Efficient Savings

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What are Liquid Funds?

• Liquid funds are the mutual funds that invest in
  fixed income securities of short-term maturity
  and low-risk factor.
• These funds are ideal to park the surplus cash
  for short term.
• Liquid mutual funds are better alternative of
  regular bank deposits as they provide higher
  returns and offer high liquidity.

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Features of Liquid Funds
Low Risk
Short Term Capital Gains
Withdraw Anytime
Lower Expenses
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Where Does Liquid Funds Invest?

• Liquid funds invest in debt securities which have
  maturity tenure of less than 91 days.
• Liquid fund is considered as the safest category
  of mutual funds.
• The securities chosen have higher credit ratings
  and low rate sensitivity.
• The types of securities chosen by fund managers
  of liquid fund are
• Certificate of Deposits (CDs)
• Commercial Papers
• Term Deposits
• Call Money
• Treasury Bills
• Government Securities

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Comparison with Bank Deposits
Parameters Savings Account Fixed Deposit Liquid Funds
Returns 4 5-7 7.5-9
Withdrawal Can be done anytime Can only be done after maturity tenure Can be done anytime
Investment Mode Cash deposit, account transfer Cash deposit SIP, lump sum (online and offline)
Taxation Exempted upto Rs 10,000 Taxed as per tax slabs Taxed as per STCG and LTCG
Risk low low low
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Comparison with Example

• Let's take an example of two individuals, say
  Lakshman and Sanjay who invested Rs 10 lac each
  for 3 years.
• Lakshman deposited Rs 10 lac in bank deposits
  while Sanjay deposited the same in liquid funds.
• The wealth gains of both the investments can be
  observed from the table below.

Lakshman Sanjay
Investments (Rs) 10,00,000 10,00,000
Platform Bank Deposit Liquid Fund
Investment Tenure 3 years 3 years
Returns 4 8
Value After 3 Years (Rs) 11,24,863 12,59,710
Wealth Gain (Rs) 1,24,863 2,59,710
Disclaimer All the calculations in the above
example is done without considering inflation and
tax deductions.
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From the example, it can be observed that for the
same amount of investments done for same tenure,
Sanjay was able to gain double the returns gained
by Lakshman. Sanjay is a smart citizen who is
aware of the wealth gain opportunities while
Lakshman uses the convesntional methods for
savings like bank deposits and is missing out the
benefits of liquid mutual funds.
Be like Sanjay and don't be like Lakshman
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The Best Liquid Funds to Invest in 2019

• Axis Liquid Fund
• Franklin India Liquid Fund
• Reliance Liquid Fund
• Aditya Birla Sun Life Liquid Fund
• Tata Liquid Fund

Note The schemes mentioned above are chosen by
the experts at MySIPonline on the basis of
multiple parameters including investment
strategy, security selection, fund manager, past
performance etc. The recommendations are only for
informative purpose and not for advertisments.
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Why Liquid Funds?

• Liquid funds can enhance your savings strategy
  and can allow you to gain better returns on your
  hard earned money.
• The average inflation rate for the last decade is
  more than 6 and any investment avenue providing
  lesser returns than that might lower the value of
  invested amount in future.
• If you are keeping the money as cash or
  depositing in bank accounts, you are reducing its
  buying power.
• Liquid funds are user friendly and investors can
  keep a track of their investment online from any
  device.
• For an emergency, withdrawals can be done any
  time. Some liquid funds also provide ATM card to
  withdraw the invested amount upto a certain
  limit.
• Investments and withdrawals are free of cost and
  can be done within few clicks after completing
  the video KYC anytime.

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Enhance your savings strategy today by opening a
free account.
Disclaimer The information and suggestions of
the funds in the presentation are for informative
purpose only. The facts and figures in the
presentation are as per the sources which include
ValueResearch and Moneycontrol as on 18-5-2019.
Mutual fund investments are subject to market
risk. Read all the scheme related documents
carefully.