LIC Premium and Maturity Calculator

SBI Liquid SIP (Mutual Funds) Calculator

SBI Liquid SIP (Mutual Funds) Calculator - Liquid fund is a category of mutual fund which invests primarily in money market instruments like certificate of deposits, treasury bills, commercial papers and term deposits. Lower maturity period of these underlying assets helps a fund manager in meeting the redemption demand from investors.

Benefits of liquid funds

These mutual funds have no lock-in period.

  • Withdrawals from liquid funds are processed within 24 hours on business days. The cut-off time on withdrawal is generally 2 p.m. on business days. It means if you place a redemption request by 2 p.m. on a business day, then the funds will be credited to your bank account on the next business day by 10 a.m.
  • Liquid funds have the lowest interest rate risk among debt funds as they primarily invest in fixed income securities with short maturity.
  • Liquid funds have no entry load and exit loads.

Returns from liquid funds

  • Liquid funds are among the best investment options for the short term during a high inflation environment. During high inflationary period, the Reserve Bank typically keeps interest rates high and tightens liquidity, helping liquid funds to earn good returns.
  • During the past year, some liquid funds have even offered higher returns than bank fixed deposits, which levy a penalty on premature withdrawal.