Skip to main content

When is it appropriate to invest in liquid funds?

Liquid funds, a type of mutual fund, are considered one of the safest options for short-term investment. 

When is it appropriate to invest in liquid funds?
Liquid funds

Liquid funds have been providing good returns in recent times.

 
Last year, this investment yielded an average return of 7.28 percent. Moreover, net investment in liquid funds increased in September. As liquid fund investment is gaining attention, it is important to know the basic features related to this type of investment.

Short-term: Liquid funds come under the debt mutual fund category. This type of funds invest in debt securities with short-term maturity. The maturity period is less than 91 days. This includes government bonds, certificates of deposit, and commercial papers.

Safety: Liquid funds are generally considered suitable for short-term investment. Since they invest in short-term investments that provide high returns, they are safe. Moreover, their liquidity feature is also improved. You can withdraw your investment immediately when needed.

Advantages: Liquid funds have various advantages for those who are looking for a balance between safety, yield and liquidity. Since they invest in high-quality short-term debt instruments, they have the potential to provide high returns.

Equity Target: Since liquid funds are suitable for short-term investment, they are not suitable for creating wealth in the long term like equity funds. They can be used for medium-term investment. They are suitable for investment for emergency funds.

Suitable Equity: You should understand the nature of liquid funds and decide according to your financial goals. They are low-risk. Everyone can resort to short-term investment. You can also consider and choose other options for short-term investment.

Comments

Popular posts from this blog

At one time, the tax rate in India was 97.50

Many feel that foreign countries tax the rich very heavily and India does not. But did you know that at one time India had to pay 97.50 percent of income tax? Indira Gandhi What is the historical tax rate in India Debates such as distribution of wealth and introduction of inheritance tax have arisen and are currently being discussed in a frenzy. But, in our country, 50 years ago, maximum tax was collected up to 97.50 percent. There was such a period in India. During Indira Gandhi's tenure as Prime Minister, income tax in India was as high as 97.50 percent. However, this collection came to an end shortly after. Indira Gandhi saw taxation as an important mechanism to balance income and wealth. Based on this, in February 1970, he presented the budget in Parliament and addressed it. Social welfare was the theme of the budget. Since the green revolution was taking place, various announcements related to the agriculture sector were included in the budget. A huge sum...

Emmvee Photovoltaic Power Share Price Target 2030: Is It a Buy?

The renewable energy sector, particularly the solar energy segment, is growing rapidly. If you are looking for long-term growth opportunities in this sector, 'Emmvee Photovoltaic Power' is a company that warrants your attention. Based on recent market studies and financial reports, we outline the company's key operational metrics here and analyze why market analysts recommend it as an excellent long-term investment. Emmvee Photovoltaic Power: Key Stock and Market Metrics As of July 16, 2026, the company’s stock boasts strong fundamentals, supported by robust operating profit margins and excellent capital utilization. Metric | Details / Statistics Current Share Price (as of 16.07.2026): ₹365.35 Market Capitalization: ₹24,696 Crore Analyst Recommendation: Buy Recommended Investment Horizon: 5 years Expected Target Price (by 2030): ₹628.00 A Detailed Look at Financial and Valuation Ratios To understand why analysts are confident that Emmvee Photovoltaic Power will reach a targ...

India will be the global gold price setting body

New Delhi: India is planning to become a gold price setter, the Chamber of Commerce of India said at a gold and gemstone conference. The industry said at the event, Gold price India will emerge as a country that sets gold prices India is a global gold price s etter. Instead, it should become a gold price setter. Domestic mining will help in this. Domestic production will meet 20 percent of the country's gold demand in the next decade. Due to insufficient domestic gold production and the lack of a gold banking system, we have to depend on the London market price. In the next 2-3 years, India will emerge as the world's jewelry hub. Gold and jewelry purchases should be honest and transparent. The Indian Standards Institution plays a key role in determining the quality of gold. Similarly, the OECD and London Bullion Market Association standards can also be adopted or equivalent standards can be developed. Similarly, the ban on the export of 24-carat gold from India h...