Liquid funds(https://www.sbimf.com/en-us/debt-mutual-funds/sbi-liquid-fund), as the name suggests, give liquidity to the investors. Liquidity reflects the ease with which an investor may turn an asset into cash without incurring any fall in its value. In a way, it relates to ability of an asset to be converted into cash during a purchase or sale transaction without adversely influencing its price. You may come across emergencies which warrant sudden requirement of cash. In such a situation, mutual funds come in handy. You may create a highly-liquid emergency fund known as Liquid Fund(https://www.sbimf.com/en-us/debt-mutual-funds/sbi-liquid-fund) for this purpose. It is a type of debt fund which gives higher returns than a regular saving bank account.
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