High Liquidity Liquid Funds
Don't let your idle cash sit in a savings account. Liquid funds invest in very short-term market instruments, offering better yields with instant access.
The Smart Alternative to Savings Accounts
Liquid funds invest in high-quality debt and money market instruments with a maturity of up to 91 days. This extremely short maturity makes them virtually immune to interest rate fluctuations.
- Quick Redemption: Funds are usually credited to your bank account within 24 hours.
- No Lock-in: You can withdraw your money anytime without exit loads (after 7 days).
- STP Source: An excellent vehicle for parking lump sums and setting up Systematic Transfer Plans (STP) into equity funds.
When to Use Liquid Funds?
Practical scenarios where liquid funds outperform traditional bank deposits.
Emergency Corpus
Build your 6-12 month emergency fund here. It earns slightly better returns than a savings account while remaining fully accessible within 24 hours in case of unforeseen expenses.
STP Routing
If you have a large lump sum to invest in equity, park it in a liquid fund first. Then, set up a Systematic Transfer Plan (STP) to gradually move money into equity funds to average out market volatility.
Parking Windfalls
Received an annual bonus, property sale proceeds, or inheritance? Park the money safely in a liquid fund while you take your time to plan a long-term asset allocation strategy.