"The underlying principles of sound investment should not alter from decade to decade, but the application of these principles must be adapted to significant changes in the financial mechanisms and climate". - Benjamin Graham
Liquid Fund is a type of debt mutual fund, open-ended scheme which have a short-term investment horizon. These invest in money market instruments like certificate of deposit, treasury bills and commercial paper of up to 91 days. The investment objective is to preserve capital and provide income via creating ample liquidity. You can choose to invest for a few days or months depending on your financial needs. The fund returns are according to the prevailing market rates. The best part is that there is no exit load applicable for liquid funds. These are available in variants like Daily/Weekly/Monthly Dividend and Growth option. You can earn steady returns over short time intervals. Moreover, you can redeem a part orthe entire amount of investment within 24 hours.
It is difficult for a lay man to pick up stocks which will give him highest returns; but a right Advisor will give you good option at the particular time to get risk adjusted returns to get better & higher post tax returns compared to FD This is exactly where genesis of good investment lies.
Mutual funds are ideal for investors who want to invest in various kinds of schemes with different investment objectives but do not have sufficient time and expertise to pick winning stocks, better Realization in Debt funds and value addition in Liquid funds. Mutual funds give you the advantage of professional management, Lower Transaction Costs, and Diversification, Liquidity and Tax Benefits.
Mutual Funds are risk adjusted method of Creating Wealth. Equity Mutual Funds manages a risk lot better compared to other asset classes as it is handeled by professionals Due to their knowledge it offers better Stock Selection, Regular investing & Lots of Research. Many good mutual funds actually have the capability to offer best Risk adjusted returns compared to different asset classes. Ex.- FD, Gold, Insurance investment, PPF, GPF Etc. in long term.
We ensure that the mutual fund which you are planning to invest in, has been in existence for a last 40 years in the Indian market.This will ensure that they have gone through multiple cycles of the market.
The qualifications and the longevity concerned fund manager also matters a lot. We do a quick check on the experience of the fund manager and their past performance.
We Access the AUM(Assets under Management) of the fund. Also the Returns and past performance is important although the risk factors state that they do not reflect future performances.
Check the investment framework, Investment allocation and the portfolio mix of the fund.
Invest in across all the schemes be it Liquid, Debt, Balanced or Equity schemes across all AMC’s.
Option to invest in Lump sum,Systematic Investment Plans(SIP’S),Systematic Transfer plans(STP’S), Systematic Withdrawal plans(SWP’S) & New Fund Offers(NFO’S) across.