Is Axis Liquid Fund safe?
Axis Liquid Fund It is a fund with Low risk and has given a CAGR/Annualized return of 7% since its launch. Ranked 21 in Liquid Fund category. Return for 2021 was 3.3% , 2020 was 4.3% and 2019 was 6.6% .13-Dec-2022
Liquid funds are typically cheaper than fixed deposits and they do not have an entry or exit load. Liquid funds offer a higher rate of return than fixed deposits, which can make them a better choice for investors who are looking for a higher return on their investment.01-Dec-2022
What is Axis bank liquid fund?
"Liquid funds invest in bonds having maturity of up to three months. They are suitable to park the amount you have set aside to meet any emergency needs or any surplus money that you don't need for a few weeks up to a year. You can expect to earn better returns than what you would get from a bank account.
Liquid Funds Returns Calculator
Can I withdraw money from liquid fund?
When you invest in liquid funds you also have the option to withdraw up to 90% or ₹50,000 (whichever is lower) of your investment relatively quickly with the instant redemption feature.
An investor in a liquid fund can hold his or her investment for as long as necessary. Though a small exit load is charged for redemption within seven days, liquid funds have flexible holding periods.
Is liquid fund tax free?
The dividends paid out by the debt fund or liquid fund are entirely tax free in the hands of the fund investor. This is an advantage that continues and to that extent it is a better option compared to a pure debt instrument.
Most Important Disadvantages of Liquid Funds
Is SIP allowed in liquid funds?
5 Best Performing Liquid Funds for SIP 2022. Liquid Funds are considered to be the safest category of debt mutual fund as they have the lowest interest rate and credit risk. Liquid funds invest in debt securities which have maturity, up to 91 days. These funds offer better returns than the Bank Savings Account.13-Dec-2022
Historically, liquid funds have generated profits in the range of 7% to 9%. It is way higher than the mere 4% returns offered by a savings bank account. Even though the returns on liquid funds are not guaranteed, more often than not, they have delivered positive returns upon redemption.29-Jun-2022
Which liquid fund is best for 1 month?
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Lowest interest rate risk: Liquid mutual funds carry the lowest interest rate risk because of their high liquidity and investments in high credit rated securities. No taxes on dividends: Liquid fund dividends are not taxed in the investor's hands, but dividend distribution tax applies.
What is better than liquid funds?
Arbitrage funds may generate relatively better returns than liquid funds, but liquid funds tend to be relatively stable and consistent when generating returns for investors.12-Sept-2022
If the investor wishes to invest funds for a short duration (15 days or less), he/she can go for liquid funds and if they wish to invest funds in funds with a maturity period of 2 months to 4 months, they can opt for ultra short-term mutual funds.
Is it good to invest in liquid funds?
Like savings accounts, liquid funds also offer you safety and liquidity. They are safe as your money is invested in high-quality debt products and they offer liquidity since there is no lock-in period and redemption requests are processed within one working day.29-Aug-2022
Expected Returns Historically, liquid funds have provided returns in the range of 7% to 9%, which is way higher than the mere 3.5% interest that a regular savings bank account offers. Even though the returns on liquid funds are not guaranteed, more often than not, they have delivered positive returns on redemption.
Should I invest lumpsum or SIP in liquid funds?
Invest the lump sum in a liquid fund. Then start a Systematic Transfer Plan (STP) from the debt fund to the ELSS. Your corpus will not only earn higher returns than a savings bank account but will also allow for systematic investment.29-Jun-2022
Majority of the drop in returns of Liquid funds can be attributed to the fall in interest rates and it will reverse as soon as the RBI starts increasing the Repo rates.
Where can I park my liquid funds?
Where to invest money for the short term?
The idea is to focus on liquid funds that have portfolio tenure of around 91 days so that liquidity can be realized at short notice with minimal impact cost on the value of the portfolio. Also check for credit risk if there is too much of state debt or private debt in the portfolio of the liquid fund.
Which is better liquid fund or savings account?
Depending on your risk profile and existing investments, liquid plans might be an excellent way to save capital and attain growth. However, it might be prudent to maintain your savings account and opt for a handful of liquid funds to keep risk at the very minimum.28-Mar-2022
Is Axis Liquid Fund safe?