Invest your surplus saving and get superior tax-efficient returns.
Who can benefit?
This is ideal for investors who have low - medium propensity for risk and high liquidity. These can be ideal for first time investors in mutual funds.
Have some spare cash languishing in your savings account, but don't want to block it in a fixed deposit or risk investing it in Equity Funds?
Cash Funds or Ultra Short Term Bond Funds could be your answer. Cash Funds (also known as Liquid Funds) or Ultra Short Term Bond Funds invest in fixed return instruments of short maturities. Their main aim is to provide a high level of safety and earn a modest return.
Of course, you will not get the spectacular returns of an equity fund. But neither will you face the same level of risk.
When should you invest in these funds?
Only when you have surplus money that you need to park for a short period of time in safe instruments, especially money that might be idling in a bank savings account. These funds are ideally meant for money that you do not want to block in longer term investments such as shares, fixed deposits, government bonds, etc. Consider such funds when you need the money back in a few days, few weeks or a few months. These are not suitable when you need to invest for periods greater than 6 months.
We are not SEBI registered investment advisors and the information & tools provided above is only for the education purpose. We are only Distributors to execute the transaction on the instruction of investors. Please consult your SEBI registered Investment Advisor before investing.
For any query, please feel free to contact us.