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Sort of, yes. But it depends on the fund type. Not all mutual funds are equally liquid, and that’s where a lot of people get tripped up.
If you’re talking about open-ended funds, especially the short-term debt or liquid ones, then yeah, they’re decently liquid. You can usually pull your money out in a day or two, maybe three max. Some funds even allow quick redemptions within minutes through certain platforms. That said, there’s a bit of fine print. Exit loads, cut-off timings, market holidays: they all play a role.
But if you’re looking at ELSS or close-ended funds? Nope. ELSS has a 3-year lock-in, and close-ended ones are locked till maturity. So while mutual funds can be part of your liquid asset bucket, not every type qualifies.
I remember a conversation with someone at Monarch Networth Capital when I was rebalancing my emergency fund. They didn’t push products. Just explained that some ultra-short-term debt funds could work better than just letting cash sit idle. I appreciated that nuance.
Another thing worth keeping in mind is that mutual fund redemptions, even in liquid ones, don’t give you instant access like withdrawing from an ATM would. So if your definition of liquidity means same-minute access, then no, mutual funds don’t quite meet that bar. But for slightly delayed needs like sudden medical bills or an urgent travel plan they work well, especially when you don’t want your emergency cash to lose value just sitting in a savings account.
Also, some funds may apply tax depending on how long you’ve held them. If you’re redeeming within 3 years, you could be taxed as per your income slab. After that, long-term capital gains tax may apply.
So to sum it up: yes, mutual funds can be part of your liquid assets if you know which ones to pick and how quickly you might need that money. Choose wisely, and you’ll strike a balance between access and return.
What else can I help you with?
Is mutual fund liquid asset?
Yes. open ended mutual funds can be considered liquid. You can convert it to cash within a couple of days.
Who elects the portfolio manager of a mutual fund?
A Portfolio Manager or a Fund Manager for a Mutual Fund is not elected but Selected by the Asset Management Company
Who determines the investment policies of the mutual fund?
The Fund Manager and the Asset Management Company
When you own a mutual fund what exactly do you own?
Mutual fund is a low risk investment. If you invest in a mutual fund, you owns shares of the mutual fund company who is selling you fund. But you do not actually own any underlying asset of the stocks or securities that mutual fund has invested in even they are using your money to invest.
How many AMC in India?
As of may 2009 there are 38 asset management companies operating in india: 1 AIG Global Investment Group Mutual Fund 2 Baroda Pioneer Mutual Fund 3 Benchmark Mutual Fund 4 Bharti AXA Mutual Fund 5 Birla Sun Life Mutual Fund 6 Canara Robeco Mutual Fund 7 DBS Chola Mutual Fund 8 Deutsche Mutual Fund 9 DSP BlackRock Mutual Fund 10 Edelweiss Mutual Fund 11 Escorts Mutual Fund 12 Fidelity Mutual Fund 13 Fortis Mutual Fund 14 Franklin Templeton Mutual Fund 15 Goldman Sachs Mutual Fund 16 HDFC Mutual Fund 17 HSBC Mutual Fund 18 ICICI Prudential Mutual Fund 19 IDFC Mutual Fund 20 ING Mutual Fund 21 JM Financial Mutual Fund 22 JPMorgan Mutual Fund 23 Kotak Mahindra Mutual Fund 24 LIC Mutual Fund 25 Mirae Asset Mutual Fund 26 Morgan Stanley Mutual Fund 27 PRINCIPAL Mutual Fund 28 Quantum Mutual Fund 29 Reliance Mutual Fund 30 Religare AEGON Mutual Fund 31 Religare Mutual Fund 32 Sahara Mutual Fund 33 SBI Mutual Fund 34 Shinsei Mutual Fund 35 Sundaram BNP Paribas Mutual Fund 36 Tata Mutual Fund 37 Taurus Mutual Fund 38 UTI Mutual Fund
Would a mutual fund be an example of a real asset?
Yes mutual funds are examples of real assets but the value of the asset is not fixed. The value changes with the changes to the stock market and the performance of the fund house.
Who is the owner of the religare mutual fund?
Religare Asset Management company is the owner of Religare Mutual Funds.
What is a mutual funds manager?
Mutual Fund Manager is a Persona in Asset Management Company (AMC), who handles all the Mutual Fund Investments, Who handles all the money of investors which has been invested in Mutual Funds.
What is the mutual fund stock management?
Mutual fund stock management is the activity of buying and selling stocks as part of the money invested by customers in a fund. It is usually done by the fund manager and supervised by the asset management company
How many mutual fund scheme are there in India?
There are numerous Mutual Fund Companies in India. Some of the prominent ones are:ICICI Prudential Mutual FundsHDFC Mutual FundsSBI Mutual FundsPrincipal Mutual FundsDSP Black Rock Mutual FundsReligare Asset ManagementReliance Mutual Fundetc
What was the largest mutual fund in 1997?
Fidelity Investments, led by its flagship Magellan fund, was the leading fund management company by 1997 asset size.
Why do many mutual funds under perform?
Usually because of bad stock selection & asset allocation by the Mutual Fund Manager.
