Liquid fund or a savings account..? The liquid fund is a type of Debt Mutual fund. It invests in instruments like treasury bills, certificate of deposits, commercial papers, government securities, inter-bank call money and term deposits. The maturity tenure of Liquid Funds is less than a quarter. Savings account have been people’s favourite when it comes to accumulating funds for decades. Banks, however, nowadays offer several other options for investments. People often find it difficult to choose between liquid funds and savings account in terms of accumulating their funds. Let us try to understand what are liquid funds. The liquid fund is a type of Debt Mutual fund. It invests in instruments like treasury bills, certificate of deposits, commercial papers, government securities, inter-bank call money and term deposits. The maturity tenure of Liquid Funds is less than a quarter. It provides safety and liquidity at the same time with moderate returns, as repo...
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