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Liquid

About

A Liquid Debt Mutual Fund is a type of debt fund that invests in money market and debt instruments with maturity up to 91 days. As per guidelines of the Securities and Exchange Board of India (SEBI), Liquid Funds must invest in instruments with maximum maturity of 91 days, making them suitable for short-term parking of funds.

They are ideal for:

  • Parking surplus money for a few days to 3 months
  • Emergency funds
  • Alternative to savings account
  • Corporate managing working capital

Fund Type

Key Features

High Liquidity
High Liquidity – Suitable for 7 days to 3 months
Balance
Relatively Stable NAV Movement
Mutual Fund
Suitable for Emergency Fund Parking
finance
Low Volatility Compared to Long-Term Debt Funds

Taxation

STCG

Holding Period ≤ 36 months, As per Income Tax slap

LTCG

Holding Period > 36 months, As per Income Tax slap

Dividends Tax

Dividends are added to your income, Taxed as per your slab rate. TDS applicable as per rules

Exemption Limit

Basic exemption limit adjustment allowed if total income is below threshold

Indexation

No Indexation

Allocation

SVG Icon

Debt & Money Market Instruments
100%

Locked in Period

Nill

Exit Load

Holding Period > 7 days, then Nill

Risk Associated

Riskometer Low To Moderate

Find the funds

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully before investing. Past performance is not indicative of future performance.