ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • Survey
  • videos
  • photos
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • Mahindra & Mahindra stock hits 52-week high as brokerages bullish on counter post Scorpio-N launch; check target prices
  • GST Council meet begins today: Know agendas of Finance Minister Nirmala Sitharaman's led two-day meeting
  • Security deposit on commercial LPG connection goes up by Rs 1050 for 19-kg cylinder; check new rates
  • Cash-starved Sri Lanka to end fuel duopoly to ease fuel shortages
  • Xiaomi 12S series set to launch with Leica cameras on July 4: Check key details here
Read in App
Business News » Personal Finance News

Liquid Mutual Fund: Is this the best short-term investment option?

Most of the times we plan only for long-term investment, ignoring our short-term necessities. 

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Liquid Mutual Fund: Is this the best short-term investment option?
Investors are advised to keep some liquid funds to tide over an unforeseen financial crisis that may come in the short run. Image source: Image source: Pixabay

Most of the times we plan only for long-term investment, ignoring our short-term necessities. However, investors are advised to keep some liquid funds to tide over an unforeseen financial crisis that may come in the short run. There are several options for parking money for emergency use. Popular among them are savings accounts and liquid mutual funds. Besides these, there are also options like recurring deposits and short-term fixed deposit. 

Experts suggest that liquid mutual funds could be one of the best investment options for short-term needs as these are low-risk and give slightly higher returns than savings bank accounts and fixed deposits. There is also no entry and exit loads for taking out money from these funds.

Jitendra Solanki, a SEBI-registered investment expert, told Zee Business Online, "Liquid mutual funds are the best short-term investment option as these are market-linked and there are possibilities that these funds may give higher returns. Though bank FDs give almost the same return, they come with lock-in period. If the investors take out money prematurely then banks charge penalty. On the other hand, liquid mutual funds do not have any entry or exit loads. Anytime investors can withdraw money."

Mumbai-based tax and investment expert Balwant Jain said, "Though the interest rate on short-term fixed deposit or FD is almost same as liquid mutual funds, the latter is more liquid and one can withdraw money anytime without attracting any penalty. On the other hand, FD attracts a penalty if one pulls out money in an emergency before maturity. Besides that, liquid mutual funds give slightly higher returns than FD though very nominal. Therefore, liquid mutual funds are the best avenue to park money for an emergency."

Watch this Zee Business video here:

Kartik Jhaveri, Director, Wealth Management at Transcent Consultants, said, "Liquid mutual funds are the most liquid investment options as the investors can take out money whenever they wish."

Jhaveri further said that banks also pay almost the same rate on savings bank account deposits. However, liquid mutual funds in most of the time give slightly better returns. If you talk about short-term FD, investors need to pay penalty if they withdraw money prematurely. "Liquidity is the best thing in this instrument. Therefore, one can adopt this as a short-term investment avenue," he said. 
 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
mutual funds
Written By: Bivekananda Biswas
Updated: Sun, Feb 24, 2019
05:04 pm
ZeeBiz WebDesk
RELATED NEWS
Money Guru: An SIP for each goal! Expert decodes how SIPs for specific goals can help you plan better Money Guru: An SIP for each goal! Expert decodes how SIPs for specific goals can help you plan better
Mutual Funds AUM down over 2% in May on the back of debt funds outflow and mark to market fall in equity funds Mutual Funds AUM down over 2% in May on the back of debt funds outflow and mark to market fall in equity funds
Money Guru: Incurring losses in your investments? Expert view on what investors should do now? Money Guru: Incurring losses in your investments? Expert view on what investors should do now?
Debt fund investors must take indexation benefits, no point exiting any position now, says Marzban Irani of LIC Mutual Fund Asset Management Debt fund investors must take indexation benefits, no point exiting any position now, says Marzban Irani of LIC Mutual Fund Asset Management
Remain invested despite May rout in debt funds, says Avnish Jain of Canara Robeco AMC; invest in overnight, liquid funds to ride interest rate risks Remain invested despite May rout in debt funds, says Avnish Jain of Canara Robeco AMC; invest in overnight, liquid funds to ride interest rate risks

LATEST NEWS

Brokerage sees robust gas demand at 6.1% CAGR over next 8 years; maintains buy on GAIL, MGL, Gujarat Gas and Petronet

Porinju Veliyath-backed small-cap stock jumps 18%; know what’s fueling rally in counter

GST on online gaming, casinos, horse racing - They may be taxed like this! What Group of Ministers recommended?

Housing sales see 4.5-fold annual growth in April-June across 8 cities; demand up 5 pc from January-March quarter

Buy, Sell or Hold: What should investors do with Strides Pharma, MRPL and IEX shares?

Rakesh Jhunjhunwala-backed star health stock drops over 43% on IPO price—What should investors do?

LIVE: 47th GST Council Meeting - What happened on 1st day? What's slated for today? Latest updates from Chandigarh meet

Ashish Kacholia Stocks: This multi-bagger counter surges for 3rd day in row, up 13% - know what’s driving the rally

WhatsApp update: Soon! iOS, Android users can appeal for ban revoke - Check details

Apple iPhone 14 Pro to feature Always-On Display - Check expected launch date, specifications and more

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV