Investing Features Of Liquid Plus Funds
With liquid plus fund, equity funds, systematic investment plans
, gold funds, fund of funds, open-ended funds, closed-ended funds, tax saving funds, balanced funds and retirement schemes, the Indian investment market is streaming ahead at fast pace. Nowadays, people like to invest in products that offer tax benefits, maximum returns, a strong profile as well as liquidness. People hunt for an investment avenue that comes with minimum risks and maximum returns. When it comes to investing in a scheme that carries highest amount of liquidity, the liquid funds LFs are considered to be most suitable than any other products. As per the recent study from experts, last year, maximum investments were made in these LFs. The contribution from liquidity funds is expected to grow further in coming few years. Thanks to their investing features, returns and tax benefits, more and more people are getting attracted towards the LFs.
Investing features
Most of the liquid funds are invested in the money market instruments like treasury bills, certificates of deposits and other commercial papers. All these funds carry a lock-in period of three days. This lock-in period offers protection to the funds from routine ups and downs of the market and investment procedures. These funds can be redeemed within a period of 24 hours. In rare situations, the lock-in period of the funds may be as high as up-to one week, a month or even higher. The tenure of liquidity funds is always lesser as compared to other normal mutual fund investments. Here are some of the attractive investing features of LFs:
You dont have to worry about any entry load or exit load
As they are offered with a great deal of liquidity, they help you build a strong investment portfolio
People invest in the
Liquid plus funds to avail maximum tax benefits.
You can generate a better profile and reasonable returns at low risks
A high grade of liquidity lets you build a portfolio that consists of high class debt securities and money market securities.
The procedure of asset allocation is very simple
Mutual funds in India offer many investment products that are featured with tax benefits. With liquid funds, if you opt for dividends, you can avail tax free returns. With respect to the tax benefits and returns from investments, the performance of LFs has been satisfactory in the recent past. Considering their high safety and investing features, most of the novice investors are giving priority to the LFs. Banks and investment companies too are offering latest liquidity funds to the beginners as well as professionals to help them fulfill their investing needs and financial goals. To make it easy for the investors to search for available products, most of the investment companies provide their avenues on their secured websites. Investing in mutual fund products that offer liquidness and diversification is always a smart choice. As the mutual fund market in India offers a wide range of opportunities, the choice remains yours. Invest in the products that let you fulfill your long term and short term financial goals.
by: Chris L
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