Investing In Liquid Funds : Let’s Compare Its Advantages And Disadvantages

Liquid funds are one of the many types of mutual funds available in the market. They invest in short‐term assets such as treasury bills, government securities, repos, certificates of deposit, or commercial paper. They are debt funds which enable companies to raise money for a Period of up to 91 days. These are highly secured and short term funds usually suitable for putting money aside for emergencies as there is almost zero risk involved with such securities. Advantages of Liquid Funds Liquid funds are perfect for financial specialists who need to park their money for a short period of time.The aim of these liquid mutual funds is to provide higher returns while offering a similar level of security for the money invested. Here are some of the advantages of Liquid Funds :- Low Risk: Liquid funds invest only in highly secured government funds. So the associated risk is minimal. Along with this they are known to provide stable returns to ...