Mutual Funds
What is Liquid Fund? — Meaning, Definition & Example
Definition
Liquid funds are a type of debt mutual fund that invest in very short-term instruments (up to 91 days) like treasury bills, commercial paper, and certificates of deposit. They offer high liquidity with next-day redemption and are ideal for parking emergency funds or short-term surplus.
💡 Real Example
Instead of keeping ₹5 lakh in a savings account at 3-4%, park it in a liquid fund earning 6-7% — you can withdraw within 24 hours.
🇮🇳 Liquid Fund in Hindi / हिंदी में
लिक्विड फंड — लिक्विड फंड डेट म्यूचुअल फंड हैं जो 91 दिनों तक के बहुत अल्पकालिक साधनों में निवेश करते हैं। अगले दिन रिडेम्पशन उपलब्ध है।
Liquid Fund (Hinglish) — Liquid fund ek debt mutual fund hai jo bahut short-term instruments (91 days tak) mein invest karta hai. Emergency fund ke liye ideal hai, next day paisa mil jaata hai.
❓ Frequently Asked Questions
What is Liquid Fund in simple words?
Liquid funds are a type of debt mutual fund that invest in very short-term instruments (up to 91 days) like treasury bills, commercial paper, and certificates of deposit. They offer high liquidity with next-day redemption and are ideal for parking emergency funds or short-term surplus.
Can you give an example of Liquid Fund?
Instead of keeping ₹5 lakh in a savings account at 3-4%, park it in a liquid fund earning 6-7% — you can withdraw within 24 hours.
What is Liquid Fund meaning in Hindi?
In Hindi, Liquid Fund is called लिक्विड फंड. लिक्विड फंड डेट म्यूचुअल फंड हैं जो 91 दिनों तक के बहुत अल्पकालिक साधनों में निवेश करते हैं। अगले दिन रिडेम्पशन उपलब्ध है।