Whom are the Liquid Fund meant for?
Given that they provide ready liquidity, income, and tax-efficiency, retail investors could choose this option as an alternative to bank deposits.
However, it suits corporate investors too, due to factors like quick redemption (T+1 working day) and the ability to accept large sums of money.
Investors could also use such funds to park their short-term surplus and transfer portions of it to equity mutual funds through the Systematic Transfer Plan (STP) route.
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What are 'Liquid Funds'?
Liquid funds are debt mutual funds that invest unitholders' money in very short-term market instruments such as Treasury Bills (T-Bills), CBLO, Government Securities (G-Secs) and call money instruments. These investments contain a minuscule amount of ...
What are the benefits of STP?
1. It encourages discipline : Signing up for a SIP is good,..but since the money continues to remain in your bank account you may be tempted to use it for other purposes. However, if you sign up for a STP, the chance of being indisciplined reduces ...
What is the benchmark of the PPLTEF?
Parag Parikh Long Term Equity Fund's (PPLTEF) performance would be benchmarked against the Nifty 500. These three indices are a broad based measurement of changes in the stock market, is used for comparative purposes only, and is not meant to be ...
What is STP?
In the case of mutual funds, a STP refers to transfer of money from one scheme to another at pre-determined intervals. Usually, STPs are undertaken from liquid schemes into equity schemes. For instance, Rs. 48000/- is invested into a liquid scheme ...
My PAN is not KYC Compliant
You tried to create the folio but due to non-KYC compliance you were unable to proceed, please find below list of documents required for Fresh purchase along with KYC documents: Common Application Form (page no. 23-28) and OTM+SIP Form (45-46). ...