Month: May 2020

What is liquid fund? Liquid funds are a type of mutual funds that primarily invest in ultra-short money market instruments which have a maturity period of up to 91 days. These mutual funds invest in money market instruments like Commercial Paper (CP), Term Deposit, Certificate of Deposit (CD), Treasury Bills (T-Bills), etc. These open-ended debt mutual funds are highly liquid in nature and carry limited risk. Who should invest in liquid mutual funds? Liquid fund schemes are suitable for those investors who wish to park their idle, surplus money for an ultra-short duration while also seeking the safety of their capital. They are also ideal for risk-averse investors. Many equity investors utilise these funds as a way to stagger their investments into equity mutual funds using the Systemat...

The insurance sector has a plethora of options that provide coverage for life as well as health ailments. But one such product that is increasingly gaining popularity in the life segment is a Unit Linked Insurance Plan or as popularly referred to as ULIP. What is ULIP? Unit Linked Insurance Plan as the name suggests is an insurance tool that has an investment component attached to it. A ULIP generates returns to the investor by investing in various funds - equity-based, debt-based etc. Unlike a pure insurance policy, the insured has the protection of life cover, and investment prospects both included in the amount of insurance premiums. Moreover, ULIP benefits include a deduction for the premiums paid under Section 80C of the Income Tax Act. The maturity benefits are also exempt from th...

There are times when you would have experienced an influx of surplus funds. In such times you might think of investing them so as to earn decent returns. There are many options available to you such as Fixed deposits, Savings bank account etc. There’s one more option available to you, just like you invest in mutual funds, you might consider investing in liquid mutual funds, a type of mutual fund. What is Liquid fund? Liquid funds are open-ended debt mutual funds that invest in financial instruments such as treasury bills, commercial papers, term deposits, and other debt securities that have maturities of 3–6 months. Liquid funds do not have any restrictions of a lock-in period, i.e., an investor can enter/exit whenever he wants. Liquid funds have comparatively low-interest risk associate...