Dhirendra Kumar talks about the safety of liquid funds
Is there any restriction on withdrawing money from liquid funds? How safe are they as an investment?
- Deepak Lal
The regulatory changes in the last two years have made liquid funds reasonably safe, and the risk of loss here is virtually nil.
Regarding restrictions on withdrawing money from these funds, there isn't any. This is why liquid funds were primarily used by companies for putting in their surplus. In liquid funds, you can put your money today and take it out a day after, and you will get one day's return on your investment. So, there is no restriction, and they are very safe.