Money is the most important thing to survive in this world. Without money, life is meaningless. Money is a lifeline for every individual in this world full of obstacles. Money is the basic thing which makes us different from animals. Human beings work hard for earning money whereas animals have no idea about money. Everyone is working hard only for money. Money is required to fulfil our dreams. Money is required to eat. Money is required for enjoyment. Therefore there’s nothing without money. But for those who love to save money, believes in savings and wants to invest their money for them, there is a number of options available in the stock market. But the best option is a mutual fund.
What are liquid funds?
Liquid funds are an efficient path to park excess of funds. The liquid fund offers low risk and high returns than a saving type account in a bank. Liquid funds try to manage the liquidity aspect of saving type bank account. They don’t have exit loads. Liquid fund gives freedom to each shareholder to withdraw funds as per their choice. One must know how to invest in liquid funds for good returns. Investment in liquid fund is very easy and paperless work. There are basically 4 steps to invest in liquid funds:
- In step 1 sign in at the official website.
- Step 2 comprises of personal details segment, where one needs to fill personal details regarding the time period of invest and amount of investment.
- Step 3: get your e-KYC done within 5 to 10 minutes.
- Step 4 is the last step where one needs to invest in the favourite fund from amongst the mutual funds.
Investment in a liquid fund is very beneficial for investors. The liquid fund focuses on providing a high degree of safety and liquidity to investor. Because of this reason, investors invest in high credit quality in liquid funds. In liquid funds, the average maturity of the portfolio number is up to 3 months. This also helps to deliver high returns to investors.
Things to consider as an investor:
One needs to confirm the amount of risk taken because the risk is the main point which should be considered as an investor. There is no fund which is risk-free. All funds have some risk with good, moderate or high returns as per your investment plan. The second point which should be focused on is, return amount. Liquid fund is the only fund which gives returns in a range of 8% to 9%.
Positive return is the main focus of every investor. The third and important point is the cost. All funds charge a fee to manage money from investors. An investor should smartly choose the fund which deducts low expenses or charge a low fee. Liquid fund is very useful in the case where one wants to create an emergency fund. When an investor invests his amount in any company, the company deducted some taxes amount and expense from the profit amount. So one must go for the fund where the taxes amount and expenses are least.