I have always advocated that EVERY investor regardless of his Financial Stature should mandatorily have a Liquid Fund in his portfolio. This fund could be for his Emergency, for his Day to day expenses, anything that is needed at a short notice.
WHAT IS A LIQUID FUND?
Liquid fund as the name suggest invest in money market instruments, treasury bills, etc which have a residual maturity of less than 91 days.
They do not have Exit Load
WHY LIQUID FUNDS?
Liquid funds give much higher returns than your Savings Bank account without compromising on the safety and liquidty of your investment.
Liquid funds have no exit loads
Redemptions happens in an instant!!
WHEN CAN I REDEEM LIQUID FUNDS?
Redemptions can be done fully or partially at any point of time. In fact, some Fund Houses give you the option of redeeming INSTANTLY. Yes...You get the liquid money in your SB account in less than 30 mins!!!!
Also read http://www.goodfundsadvisor.in/2016/07/reliance-anytime-money-card-atm-card.html
2. Bonus till you spend/plan it
3. Sales proceeds of your flat till you invest in new one
4. Funds created for your child's education /marriage till you use it
5. LumSum amount lying in your bank account which you may be required any time
6. A Funds lying ideal for long weekend
1. No locking period
2. Historically return 7.50% to8.50% p.a as against 4% in saving account or 0% in current account
3. Online access
4. Minimum Rs. 5000 maximum no limit
Rs. 1 Cr kept for one day will earn Rs. 2200 per day, which mean on weekends you will earn Rs. 2,28,000 (salary of one person).
Please Consult your Financial Advisor before investing.