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Mar 16, 2021 · Picton Mahoney’s fund managed to keep its head above the water by about 2% through the two months of February and March 2020 and finished the year with a positive 13% return. It did so by applying a systematic long and short strategy in the sole category of equities. Ian Tam, Director of Investment Research for Morningstar Canada, goes ...
- Cash and Cash Equivalents
- Marketable Securities
- Exchange-Traded Funds
- Stocks
Savings Accounts
Savings accounts are among the most liquid investments available. They typically offer a modest interest rate and are insured by the Federal Deposit Insurance Corporation (FDIC)up to a certain limit, making them a safe option for storing cash.
Money Market Accounts
Money market accountsare similar to savings accounts but typically offer slightly higher interest rates. These accounts invest in short-term, low-risk securities and are also insured by the FDIC up to a certain limit.
Certificates of Deposit
Certificates of Deposit (CDs) are time deposits that pay a fixed interest rate over a specified term. While less liquid than savings and money market accounts due to early withdrawal penalties, they can still be considered relatively liquid investments if the term is short.
Treasury Bills
Treasury bills are short-term debt securitiesissued by the U.S. government. They are considered low-risk investments due to their backing by the federal government and offer a modest return.
Commercial Paper
Commercial paper is a short-term debt instrument issued by corporations to finance their short-term obligations. These investments are typically low-risk but may be subject to credit risk depending on the issuer's financial stability.
Short-term Municipal Bonds
Short-term municipal bonds are debt securities issued by state and local governments. These investments are generally low-risk and offer the added benefit of being exempt from federal income taxes.
Equity ETFs
Equity Exchange-Traded Funds (ETFs) invest in a diversified portfolio of stocksand provide investors with exposure to various sectors, industries, and market capitalizations. These investments offer liquidity through the ease of trading on stock exchanges.
Fixed-Income ETFs
Fixed-income ETFs invest in bondsand other debt securities, providing investors with exposure to different types of fixed-income assets. These investments offer liquidity through their ability to be traded on stock exchanges.
Commodity ETFs
Commodity ETFs provide investors with exposure to various commodities, such as precious metals, energy, and agriculture products. These investments offer liquidity through their ability to be traded on stock exchanges.
Blue-Chip Stocks
Blue-chip stocks are shares of well-established, financially stablecompanies with a proven profitability and reliability track record. These stocks tend to be highly liquid due to their broad market acceptance and significant trading volume.
Minimum Investment: Liquid funds are better than Bank FDs as they are affordable. In a Bank FD, you need to invest a minimum of Rs 5,000. But in liquid funds, you can invest with as little as Rs 500 via SIPs. Even lumpsum investing starts at Rs 1,000 only. Hence liquid funds are easy on the pocket.
- Liquid funds are perfect for investors who want to park surplus funds for the short-term. Advantages of liquid funds include – superior returns, sa...
- Yes, you can withdraw money from liquid funds and the redemption amount will be available in T+1 day. So, if you withdraw from a liquid fund on Mon...
- No. Liquid fund returns are not guaranteed. They are linked to the market and hence experience fluctuations. Learn how liquid funds work.
Nov 1, 2023 · One option is in a money market fund, which you can purchase through brokerage accounts, mutual fund companies, or directly from banks and credit unions. "Right now because of interest rates it is ...
At the other end of the spectrum, some investments are highly illiquid, which means your ability to trade in and out of them whenever you please is strictly limited. For example, many hedge funds and similar closely held vehicles may routinely impose lockup periods, during which you are prohibited from selling your investment.
Sep 27, 2024 · 2. Treasury bills and treasury bonds. Treasury bills, also called T-bills and treasury bonds or T-bonds, are highly liquid assets that are some of the most stable kinds of bonds, as the United States government itself backs them up. Holding on to the bond will earn you interest up until the maturity date.
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Mar 23, 2020 · Liquid funds are essentially funds that invest in short-term debt and money market bonds. They are not similar to equity or equity-related stocks. Liquid funds are invested in Treasury Bills, Term Deposits, Call Money Option, Commercial Papers and Certificate of Deposits (CDs). These funds usually have tenure of 1- 90 days.
