MoneyRadar

Investing

Liquid fund

A very low-risk debt fund for parking money you may need within days or weeks.

A liquid fund invests in very short-term instruments that mature in under 91 days, keeping risk and volatility extremely low.

It is a smarter home for idle cash than a savings account, often earning a bit more while staying easy to withdraw.

It is a common place to park an emergency fund or a lumpsum waiting to be moved into equity via STP.

For example

Instead of ₹3L sitting in a savings account at 3%, a liquid fund can earn closer to 6-7% while you can still redeem in a day.

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