Which money should you keep in Liquid Mutual Funds?
✅ Your salary till your next EMI is due.
✅ Bonus till you spend / plan it.
✅ Sales proceeds of your flat till you invest in a new one.
✅ Funds created for your child’s education /marriage till you use it.
✅ Lump Sum amount lying in your bank account which you may require at any time.
✅ Funds lying idle for long weekend.
Why you should invest in liquid fund?
1. No lock-in period.
2. Historical returns of about 7.50% to 8.50% p.a. as against 4% p.a. in savings account or 0% in current account.
3. Online access.
4. Minimum Rs. 5,000 ; Maximum no limit.
For instance, Rs. 1 cr kept for one day will earn Rs. 2,200 per day, which means on weekends you will earn about Rs. 2.28 lakhs (for the whole year).
Source courtesy Wealth Guru.