LIQUID FUND

Investment In Mutual Fund Over The Long Term Can Create Wealth For You. However, It Is Not Easy To Choose The Right Mutual Fund. Don't Worry, Our Expert Advice Can Help You Choose The Best & Suitable Mutual Fund For You To Achieve Your Financial Goals..

A liquid Fund can also be termed as a debt fund that makes potential investments in the domain of the money market or debt market. Its investment instruments or which investments are made are in form of government securities, treasury bills, call money, commercial paper, etc. it holds a maturity period of up to 91 days. These are such forms of investments that are done for a better, safe, and fast return on investments. Liquid fund enjoys the feature of flexible investments. These are usually managed by the potential market managers/brokers who work independently on behalf of their potential investors. The risk is minimum as compared to other investments and least volatile due to their limited and short tenure of maturity and return. It maximizes the adequate return on investment thus encouraging the investor to invest at a continuous pace. Usually, it is done by investors who are promoting their business and is needed for funds for their expansion and support.

Guidance for deciding a perfect liquid fund investment plan:

A liquid fund is considered to be one of the most flexible investments where the return on investments is secured for the investors. There are certain norms or procedures an investor should observe or follow to gain the maximum output from his investments, some of which are as follows:

Selection of the right investment: For maximizing the return on investment, the investor should invest in rationally acceptable investments.
Selection of appropriate market managers: To avoid the volatility of the market, the investor should invest through an appropriate market manager who holds sound knowledge of the investment market.
Comparison of the different layers of the market: In order to achieve maximum return on investments, an investor should compare the functioning and operation of the different layers of the market.

F.A.Q

WHY IT IS NECESSARY TO INVEST IN LIQUID FUNDS?

A liquid fund provides certain benefits to its potential investors some of which are as follows: • The least amount of risks involved ultimately provides freedom to its investors to invest in the market operations. • Liquid funds ensure higher returns than traditional savings bank accounts. • Great investment opportunity for the idle money which usually generated zero returns. • It’s a rational investment scenario for first-time investors. • Does not require investing high and can be done according to the comfort of the investors.
WHO SHOULD INVEST IN LIQUID FUNDS?

• Fresh investors without detailed and vivid knowledge about the market. • Investors seeking a short-term investment plan. • Investors seeking minimum risk in investment. • Small business firms/holders.
THINGS TO CONSIDER AS AN INVESTOR:

• Objectives of the fund • Calculation of the expected return • Cost of Investment • Financial targets of the investor. • Expansion of the investment.
HOW TO EVALUATE LIQUID FUNDS?

• Observing the return on investments. • History of the fund. • Calculating the ratio of expenses. • Monitoring the market and the changes in the operational ratio. • Comparing the markets.