Can I invest in mutual funds for 3 months?
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Can I invest in mutual funds for 3 months?
For a short period of 3 to 6 months, you can either park your money in liquid mutual funds or ultra short term debt mutual fund. Liquid Mutual Funds usually invest in government securities and certificate of deposits of up to 3 months duration.
How much returns do liquid funds give?
Top 5 Liquid Funds in India
| Fund name | 1-year return |
|---|---|
| Axis Liquid Fund Growth | 7.47\% |
| UTI Liquid Fund – Cash Plan Growth | 7.47\% |
| ICICI Prudential Liquid Fund Growth | 7.40\% |
| L Liquid Fund Growth | 7.37\% |
Is it good to invest in liquid funds now?
Liquid funds have no lock-in or very low lock-in period. The interest rate of liquid mutual funds is the lowest among all short-term investments due to low maturity period. Liquid funds are a perfect solution for investors who wish to park their idle cash for a short duration without the risk of Capital Loss.
Can I invest in mutual fund for a month?
You can build a diversified mutual fund portfolio by investing as low as Rs 500 a month through SIP in mutual fund schemes of your choice. You also have the option to invest either as a lump sum or a systematic investment plan (SIP).
Can liquid funds give negative returns?
The liquid funds can go down in value. However, the likelihood of them going down in value is not that often, owing to the stringent regulations. But, if at all that happens, the magnitude of that fall could be very nominal and can recover in seven-eight days.
What is the minimum period to invest in mutual funds?
The minimum tenure for investment in Mutual Funds is a day and the maximum tenure is ‘perpetual’.
Which is the best liquid fund?
The table below shows the top-performing liquid funds based on the past 3 and 5-year returns:
| Mutual fund | 5 Yr. Returns | 3 Yr. Returns |
|---|---|---|
| ICICI Prudential Money Market Fund – Cash Option | 6.42\% | 5.97\% |
| Kotak Money Market Scheme – Direct Plan – Growth | 6.42\% | 5.92\% |
| Kotak Money Market Scheme | 6.34\% | 5.83\% |
| Quant Liquid Plan Growth | 6.04\% | 5.5\% |
How can I invest in mutual funds for 3-6 months?
For a short period of 3 to 6 months, you can either park your money in liquid mutual funds or ultra short term debt mutual fund. Liquid Mutual Funds usually invest in government securities and certificate of deposits of up to 3 months duration.
When is the best time to invest in liquid funds?
If it is 3 months or less than that, then it is a good fund to invest in. A short term maturity period ensures that the portfolio is immune to interest rate fluctuations that occur in the long term. Pick up that liquid fund which has a low expense ratio, as this increases the overall returns delivered by the fund.
What is the average return on a liquid fund?
Over the years, liquid funds have delivered returns of more than 7\%, that is significantly higher than 4-5\% returns offered by Savings Accounts. How are Liquid Funds Taxed? Returns from Liquid Funds are taxed based on the holding period of invested capital:
What is the highest maturity period of a liquid fund?
The highest maturity of any invested security is 3 months, which effectively protects the portfolio from interest rate changes. Liquid funds are gaining popularity amongst the retail investors because of their ability to deliver higher returns when compared to investment in Bank Fixed Deposits or Savings Account.