answersLogoWhite

0


Best Answer

On earlier generation investors used to commonly invest in FDs, Traditional Life insurance policy, Gold and Real state and they were unware of other investment avenues like debt funds, equity funds, Gold ETFs and Term Plan in case of life insurance plan. But as time is changing, we shifting to better investment avenues and one such avenue is Liquid Fund compare to traditional saving account whenever you have some extra cash. As saving account is a kind of deposit account offered by Bank’s financial institution or post office which provide security of the principal amount and pay certain interest over it. That has to be an average minimum balance that you need to maintain throughout a year and it pays out interest on quarterly basis whereas liquid fund is kind of debt mutual funds which invest into instrument like commercial papers, treasury bills, certificate of deposits, etc. The maturity of these instrument here is very less which ranges from a single day to 90 days. These are available in two options: growth and dividend. To know more about Liquid fund tap https://www.vedantasset.com/articles/liquid-funds---your-substitute-to-saving-bank-deposit_1007.aspx

User Avatar

Pranav Sharma

Lvl 2
4y ago
This answer is:
User Avatar
More answers
User Avatar

Wiki User

9y ago

Liquid funds invest in securities with a residual maturity of up to 91 days. Liquid funds are a type of mutual fund and do not have a lock-in period.

This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Where do liquid funds invest?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is the definition of variable annuity funds?

A variable annuity of funds allows for you to invest funds with an insurance company. When you invest your funds, you are able to pick which investments you would like your funds to go into.


How do you invest in an array of funds?

You should invest in an array of funds for proper fund management such as equity, balanced funds and protected funds as they have different growth patterns and types of risks.


What are the contents of hedge funds?

Contents as in what do hedge funds invest in?


What are liquidated funds?

Liquid funds are used primarily as an alternative to short-term fix deposits. Liquid funds invest with minimal risk (like money market funds). Most funds have a lock-in period of a maximum of three days to protect against procedural (primarily banking) glitches, and offer redemption proceeds within 24 hours. The minimum investment size in a liquid fund varies from Rs. 25,000 to Rs 1 lakh.


How can one invest in Green mutual funds?

By logging into their websites, and buying stocks you can invest in them. By searching Green Mutual Funds online, many websites allow you to invest into this, making it very easy to get hold of and invest your money into it.


How do the various types of mutual funds differ?

Stock, bond, and hybrid funds invest in long-term securities, and as such are known as long-term funds. Hybrid funds invest in a combination of stocks, bonds, and other securities


Who can invest in banking sector funds?

Usually there are no restrictions as to who can invest in a particular type of fund. If you are asking, who would want to invest in banking funds, the answer is: anyone who feels that the banking industry will continue to grow and generate profits for the investors can invest in them.


Why do we need mutual fund calculators?

You can invest regularly in mutual funds through systematic investment plan. It allows you to invest a fixed amount of money in mutual funds regularly. You can set aside a certain amount of money monthly to invest in mutual funds.


Why might one invest in mutual funds?

One might invest in mutual funds to get good returns for their money. The whole idea is to make a profit and mutual funds enable one to gamble on investments.


Are mutual funds buy stock?

It depends. Equity diversified mutual funds invest in the stocks. Others might invest accordingly in other investment instruments.


How should I learn how to invest in mutual funds?

You can lean about how to invest in mutual funds on the following website: http://www.sec.gov/investor/pubs/inwsmf.htm. They have great tips.


Can trust invest in mutual funds?

Whether or not a trust can invest in mutual funds depends on the type of trust and the provisions in the trust document that discuss trustee powers.