Which bank is best for liquid fund?
Table of Contents
Which bank is best for liquid fund?
The table below shows the top-performing liquid funds based on the past 3 and 5-year returns:
| Mutual fund | 5 Yr. Returns | 3 Yr. Returns |
|---|---|---|
| ICICI Prudential Money Market Fund – Direct Plan – Growth | 6.56\% | 6.12\% |
| UTI Money Market Fund – Direct Plan – Growth | 6.57\% | 6.09\% |
| ICICI Prudential Money Market Fund – Cash Option | 6.43\% | 5.99\% |
How do I choose a good liquid fund?
For this reason, you should choose liquid funds that are large. These can handle redemption pressures better than liquid funds with smaller AUMs. As a rule of thumb, you should invest in a liquid fund which has an AUM of at least Rs. 20,000 crores.
How to invest in liquid mutual funds for 3-6 months?
For a short period of 3 to 6 months, you can either park your money in liquid mutual funds or ultra short term debt mutual fund. Liquid Mutual Funds usually invest in government securities and certificate of deposits of up to 3 months duration. However if one is eager to take risk for higher returns can look at few options below
What are liquid funds and how do they work?
According to SEBI norms, liquid funds are only allowed to invest in debt and money market securities with maturities of up to 91 days. The return of a liquid fund depends on the market price of the securities held by the fund.
Can liquid funds invest in commercial paper?
Liquid funds can invest only in listed commercial paper, and they have an overall exposure limit of 20\% in a sector. They are not permitted to invest in risky assets as defined by SEBI norms. These norms aim to contain credit risk in the liquid fund portfolio.
How much money should you keep in a liquid investment account?
It is advisable to keep three to six months’ worth of expenses in a checking or money market account with check-writing privileges. When considering liquid investment options, make sure you can access the money quickly, easily, and without a withdrawal penalty.