Can I invest lump sum in liquid funds?
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Can I invest lump sum 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.
Can we invest in liquid funds?
Liquid funds are meant for those having substantial idle cash and are looking for short-term investment havens. Instead of parking your surplus funds in a savings bank account, you can invest in a liquid fund and earn much higher returns. Liquid funds can be used as a medium to invest in equity funds.
Can I invest in liquid fund through SIP?
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. For better returns, investors can invest in these pre-listed top performing liquid funds via a SIP.
Can I withdraw full amount from liquid fund?
According to Sebi guidelines, investors are allowed to withdraw up to ₹50,000 or 90\% of the investment amount, whichever is lower, per day per scheme under this facility. To make a withdrawal, you will need to put in a redemption request.
Which liquid fund is best?
The table below shows the top-performing liquid funds based on the past 3 and 5-year returns:
| Mutual fund | 5 Yr. Returns | 3 Yr. Returns |
|---|---|---|
| ICICI Prudential Money Market Fund – Cash Option | 6.45\% | 6.03\% |
| Kotak Money Market Scheme – Direct Plan – Growth | 6.45\% | 5.97\% |
| Kotak Money Market Scheme | 6.38\% | 5.89\% |
| Quant Liquid Plan Growth | 6.04\% | 5.5\% |
What is the minimum amount to invest in liquid funds?
These funds require a minimum investment of Rs 1,000. However, some funds have a minimum investment requirement of Rs 5,000 too. In the past five years, liquid funds have given returns varying between five and nine per cent.
How do I cancel Liquid fund?
In case of liquid funds, there will be a small exit load if withdrawal is made within the first seven days of the investment. Also, in case of savings bank accounts, the interest earned up to ₹10,000 per year is tax-free, while in case of liquid funds, you will have to pay short-term or long-term capital gains tax.
How do I start a liquid fund?
To be able to invest in a liquid fund, the investor should have KYC formalities completed with a KYC registration agency. A KYC form needs to be filled up and documents (address and identity proof) should be submitted, with originals for this purpose.
What is the tax on liquid fund investment of 10 lakh?
You invested Rs 10 lakh in a liquid fund and sold it after 1 year at an NAV of Rs 10.5 lakh. You have made a gain of Rs 50,000 in the liquid fund investment and the same will be taxed at 30\%.
What is a a liquid fund?
A liquid fund is a type of mutual fund which invests in debt securities with a maturity up to 91 days. This keeps the risk in these funds to a minimum. They give a return slightly more than fixed deposits of similar maturity.
How are the returns of liquid funds compared to fixed deposits?
The returns of liquid funds are close to those of fixed deposits of a similar maturity. Note that FD returns may be higher for higher tenure FDs like 3 or 5 yr FDs, however these are more comparable to short term debt funds than liquid funds. The top performing liquid fund in 2018, Baroda Liquid Fund delivered 7.46\%.
Which is the best liquid fund in India in 2018?
The top performing liquid fund in 2018, Baroda Liquid Fund delivered 7.46\%. This was followed by Franklin India Liquid Fund – Super Institutional Plan at 7.45\% and Axis Liquid Fund at 7.44\%.