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Liquid funds vs debt funds: Which one should you choose?

We help clear a common misconception among investors. Find out which one you should pick for parking money.

Liquid funds vs debt funds: Find out their key differencesAI-generated image

When it comes to investing in debt mutual funds, a common question investors ask is: What's the difference between liquid funds and debt funds? While they may sound different, they are actually related. Liquid funds are a type of debt mutual fund, serving a distinct purpose - providing a safe, highly liquid avenue for parking short-term money.

This article was originally published on February 11, 2025.


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