Read this blog to know if liquid funds are suitable for you. Learn what liquid funds are and how they work. Find out how to invest in the best liquid funds in India using Cube Wealth.
November 7, 2024
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A liquid fund is a type of low-risk debt fund that is known to give investors benefits like high liquidity and better returns than an average bank savings account.
This blog will help you understand if liquid funds are right for you.
We’ll walk you through the underlying principles of liquid funds and how you can access the top liquid funds in India using Cube Wealth.
What Are Liquid Funds?
Liquid funds fall under the debt funds category and invest in low-risk market components like commercial paper, government securities, bonds, and more.
A liquid fund’s portfolio matures in 60 to 91 days. Thus, it is relatively safer than other mutual funds due to the low lending period. Moreover, it offers predictable returns between 3 to 6% with high liquidity.
Who Should Invest In Liquid Funds?
A liquid fund is generally suitable for the short term, from 15 days to 1 year. It’s ideal for investors who require quick access to money but want better returns than an average bank account as well.
Most liquid fund withdrawals are processed in 1 to 3 business days. However, Cube gives you access to the Cube ATM feature that allows you to instantly withdraw money from Nippon India Liquid Fund.
Liquid funds are stable sidekicks that provide the right balance when paired with heroes. They offer predictable returns and relative stability over the short term compared to long term options like equity funds.
Moreover, the top liquid funds recommended on Cube can help you build the ideal emergency bucket with easy liquidity and instant withdrawals with Cube ATM.
The top liquid funds on Cube Wealth are handpicked by Wealth First, Cube’s mutual fund advisory partner. WF curates a list of the best liquid funds every month and recommends options that work for you.
on stock picking, poring over excel sheets, financial news, analyzing market trends, tracking the Sensex, researching company fundamentals, comparing mutual funds, reading financial reports, trying to predict the future & losing your sanity!
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