Recently, an article in the Economic Times talked about the fact that banks were too slow to raise interest rates. They were dithering to take the step to up savings bank account rates. For instance, the State Bank of India offers 2.7% for money that is kept in a savings account while ICICI Bank and HDFC Bank offer 3% respectively.
As any untrained eye can see, this scenario is far from exemplary or desirable. Keeping money in a savings account is not a worthwhile scheme. However, the average investor does not have to be worried about this situation. Mutual funds have always been a better investment option albeit with an element of risk attached.
So, join Money Assist, a mutual fund agent in Kolkata, as we take a look into the world of liquid funds, which are a better option than the savings bank account, as of 2023.
Liquid funds are a type of debt mutual fund. They invest in debt schemes or money market instruments that mature within 91 days. With liquid funds, you can park surplus funds for a few weeks or months. Get in touch with a mutual fund agent in Kolkata to invest in the same.
At present liquid funds are yielding close to 6% which is twice the amount that is being provided by the State Bank of India or other banks. So, if you are looking for a short-term fund then you should seriously consider liquid funds.
Given that the repo rates have been increased by 250 basis points by RBI, banks have not increased interest rates for the savings account. Banks ought to have increased their interest rate but for some reason, they are still stalling.
Liquid funds invest in debt or money market instruments that mature in 91 days. For instance, they invest in Treasury Bills, Tri-Party Repos, Certificates of Deposit, and Commercial Papers. The returns of liquid funds are typically better than other overnight funds, hence they are preferred by the retail investor. To invest in these, you can get in touch with a mutual fund agent in Kolkata.
Mutual fund agents in Kolkata are a great mode by which you can invest in mutual funds, especially liquid funds. As a retail investor, choose to appreciate capital by opting for liquid funds instead of keeping money in a saving account.
So, get ahead by choosing to stay invested in liquid funds!
