There are two categories of funds that have caught the imagination of investors these days -- liquid and liquid-plus funds. Though, at present, most of the money in these funds comes from institutional investors, the retail investor is slowly beginning to realise their benefits. These funds can prove to be useful for the retail investor to manage their short-term surpluses.
In the last one year, liquid funds have returned between 7.7 per cent and 8.85 per cent. Liquid-plus funds, on the other hand, have slightly higher returns between 8.4 and 11.29 per cent. Obviously, that makes them a better choice as against money earning a dismal 3-3.5 per cent in your savings account. Let us look at these two options in detail.
In the last one year, liquid funds have returned between 7.7 per cent and 8.85 per cent. Liquid-plus funds, on the other hand, have slightly higher returns between 8.4 and 11.29 per cent. Obviously, that makes them a better choice as against money earning a dismal 3-3.5 per cent in your savings account. Let us look at these two options in detail.