Please suggest some good liquid or debt funds where I can invest about Rs 12 lakh and then systematically transfer Rs 1 lakh every month to some equity schemes. I am very conservative and would not like to take too much risk. Please guide.
- R. Balasubramanian
Liquid funds invest in short maturity instruments like commercial papers or bonds issued by companies. The market value of these instruments is affected by changes in yields on short tenure government securities. As liquid funds are at the shortest end of the maturity spectrum, they are affected the least by interest rate fluctuations. Thus, they are considered reasonably safe.