Should you invest surplus income in liquid funds?

Within several types of debt mutual fund schemes, liquid funds are a suitable avenue to park your money for your immediate needs that are due over the next few weeks or months. They have the potential to return slightly higher than the savings bank account. We often come across the question that whether retail investors should use their savings bank account or liquid funds for that purpose to gain more returns. Let us compare both. Liquid funds are debt funds that invest in instruments having a maturity period of less than 91 days. As the name suggests, these funds invest in highly liquid instruments. They are suitable to park your money for the immediate needs that are over the next few weeks to months. But they have an exit load if redeemed withi

This article was originally published on June 03, 2022.