Brief Description of  LIQUID FUND s

• The investment objective of Liquid Funds – is to invest in Debt & Money Market instruments up to 90 days maturity.  

• Such schemes are suitable for very short term deployment of funds, say for a tenure of 1 Day to 365 days. Rather this scheme can be used as a substitute to your Current/Savings Bank Account.

• The return in this scheme is accrued/payable to the investor on a daily basis.

• The transaction in this scheme can be done from Monday to Friday every week, other than Bank or Public Holidays. The cut off time for investing in this scheme is before 2.00 pm & the cut off time for redeeming funds from this scheme is 3.00 pm on every working day. The redemption proceeds will be credited to the customer account on T+1 basis i.e. next working day from the date of receipt of redemption(other than Saturday, Sunday, Bank/Public Holiday).

•  The entry/exit load in this scheme is NIL.

• Also find given below the returns of the various scheme as on 7^th July 2014.

Reasons/Benefits of investing in  Liquid Funds :

• The scheme can act as a substitute for your saving account as the returns offered by the scheme in the current context is substantially higher than the savings account interest of 3.5% annualized.

• In the current interest rate scenario, the fund is delivering higher return than short term Fixed Deposit as the current 46 days to 90 days Bank FD rates are in the range of 5% to 6%.

• The liquidity in this fund is as good as a savings account, as the money is available on T + 1 basis.   

Illustrative - Assuming a 8% daily annualized return delivered by the scheme, an investor keeping 1 Cr in Liquid Fund for 1 Month earns Rs 37500 in excess of interest earned on savings account (Calculation –Liquid Fund earning – Rs 66666/-, Savings A/C interest – Rs 29166/-).