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Oct 14, 2024 · A cash equivalent is an investment with a short-term maturity such as stocks, bonds, and mutual funds that can be quickly converted to cash. Liquid assets differ from non-liquid assets such as ...
- Steven Nickolas
- 2 min
Aug 8, 2024 · A liquid fund is a mutual fund instrument that invests in debt and money market securities. These securities include treasury bills, commercial papers, certificates of deposits, bank term deposits, etc. The important part to note here is that these funds have a tenure of only 91 days.
Apr 6, 2023 · Liquid funds are mutual funds that invest in short-term, low-risk money market instruments such as treasury bills, commercial papers, and certificates of deposit. These funds are primarily used for parking surplus funds for short periods of time. Liquid funds are designed to offer high liquidity and low risk.
Jul 8, 2024 · A liquid fund is a kind of debt mutual fund that invests mainly in short-term money market instruments such as Certificates of Deposit (CDs), Commercial Papers (CPs), Treasury Bills (T-bills), and Collateralised Borrowing and Lending Obligation (CBLO). These securities mature in 91 days or less, which makes liquid funds a low-risk investment ...
A liquid fund is a low-risk debt investment focusing on principal safety and consistent returns. As a result of this, the value of a liquid fund is relatively steady across market interest rate cycles. Funds owning longer maturity securities, on the other hand, might experience both high capital gains and huge capital losses when interest rates ...
May 20, 2024 · Liquid funds are debt funds that invest in short‐term assets such as treasury bills, government securities, repos, certificates of deposit, or commercial paper. According to SEBI norms, liquid funds are only allowed to invest in debt and money market securities with maturities of up to 91 days. The return of a liquid fund depends on the ...
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Understanding liquid funds. Liquid funds are short-term investment schemes that invest in short-term, fixed-income generating investment options like Treasury bills, commercial papers, and the like. The primary purpose of the liquid funds is to offer liquidity, and hence, the investments in the fund have a maximum maturity period of 91 days.
