The Evolution of Invest The Money Get Great Returns

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Posted on 13-12-2020 by Admin


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Invest the money lying in a savings account in a liquid fund for a short period, you will get great returns. It can also be invested for a short period of up to 91 days maturity. Instead of keeping your money in a savings or current account, put it in a liquid fund.

In our country, most people have a savings account, in which they keep their spare money. Many times we do not need this money for a few weeks or months. In such a situation, we usually keep our surplus money in a savings bank account. But we do not get any special return on this money. But if you want, you can earn more by investing this money in a liquid fund.

What is a liquid fund?

 

Liquid funds are a type of mutual fund. They invest in government securities, certificates of deposit, treasury bills, commercial papers and other debt instruments. These are funds in which you can invest up to 91 days for maturity period ie for short period. The risk is also less in these. Savings account gets more interest in this fund. However, if you want, you can withdraw money even before 91 days. Liquid funds can be cashed within a day if needed.

When to invest in a liquid fund?

It is better to invest in this fund only if you have money coming from somewhere and it is going to be kept in your savings account for a few days. If your money is lying vacant for some time, then it is beneficial to invest in it. In this case, instead of keeping your money in a savings or current account, put it in a liquid fund.

Saving Account vs. Liquid Fund: Return

 

Savings bank accounts typically receive interest at the rate of 2.5 -4%. In comparison, liquid fund schemes provide you with a higher rate of return of 6.6% -6.7%. There is no obligation in this form of minimum balance or minimum investment. Therefore, liquid funds can give higher returns for a shorter period of time.

Why should one invest in a liquid fund instead of a savings account?

  • Liquid funds invest in short-term investment instruments such as government securities, certificates of deposit and treasury bills, etc.
  • One gets flexibility whenever one wants to invest or withdraw without any penalty or exit load.
  • Some fund houses also offer ATM cards to withdraw money. This further adds to your convenience.

 


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