- Are liquid funds safe now?
- Is income from liquid fund taxable?
- Is it wise to invest in liquid funds?
- How is Axis Liquid Fund?
- Do liquid funds have exit load?
- When can I withdraw from liquid fund?
- Is liquid fund tax free?
- Is Liquid Fund better than FD?
- Which liquid fund is best?
- Is Fd a liquid asset?
- Can liquid funds give negative returns?
- How does liquid fund work?
- What is exit load?
- What is cut off time in mutual fund?
Are liquid funds safe now?
Although liquid funds are not entirely risk-free, however, they are low risk-low returns instruments.
As they invest predominantly in debt instruments, they are subject to interest rate risk and credit risk.
A change in the prevailing interest rates may cause a difference in the price of the debt instruments..
Is income from liquid fund taxable?
If the liquid fund investment is held for more than three years, it is subject to long term capital gains which is taxable at 20% with indexation. If the investment is held for three years or less than that, the capital gain is taxed at the marginal (highest) tax slab rate applicable to the assessee.
Is it wise to invest in liquid funds?
Investing emergency corpus in liquid funds has been a regular practice. It is preferred for its easy liquidity and ability to generate better returns than savings bank accounts. … Investors who have no urgent need for money should, therefore, stay invested.
How is Axis Liquid Fund?
Axis Liquid Fund The fund seeks to generate reasonable return commensurate with low risk and high degree of liquidity from a portfolio of money market and high quality debt securities.
Do liquid funds have exit load?
Effective October 20, all liquid funds have started charging an exit load varying between 0.0070% to 0.0045% of the redemption amount if the money is withdrawn within seven days of investment. SEBI had required fund houses to impose this exit load in its circular released a month ago .
When can I withdraw from liquid fund?
In case of liquid funds, there will be a small exit load if withdrawal is made within the first seven days of the investment. Also, in case of savings bank accounts, the interest earned up to ₹10,000 per year is tax-free, while in case of liquid funds, you will have to pay short-term or long-term capital gains tax.
Is liquid fund tax free?
Taxation on Liquid Funds Investors earn dividends and capital gains from liquid funds. Investors do not pay any tax on dividend income from mutual funds.
Is Liquid Fund better than FD?
Liquid fund investors are considered to be in a better position than fixed deposit holders in case of taxation on their respective investments. When it comes to tax on liquid funds, the investors are entitled to avail tax indexation, which directly helps them to lower their burden of tax-related expenses.
Which liquid fund is best?
Top 10 Liquid Mutual FundsFund NameCategoryRatingLIC MF Liquid FundDebt4starICICI Prudential Liquid FundDebt4starAditya Birla Sun Life Liquid FundDebt4starMahindra Liquid FundDebt4star12 more rows
Is Fd a liquid asset?
Bank fixed deposits or FDs are popular as a savings instrument among investors. … FDs are invested into until a specific maturity period. Liquid funds, however, invest in money market instruments having lower maturity period and thus they ensure liquidity.
Can liquid funds give negative returns?
On an average, liquid funds have delivered 0% over the past week, according to data from Value Research and many large liquid funds have actually delivered negative returns. … These are categories that normally do not deliver negative returns, even over short time periods and are considered extremely low risk.
How does liquid fund work?
A Liquid Mutual Fund is a debt fund which invests in fixed-income instruments like commercial paper, government securities, treasury bills, etc. … The net asset value or NAV of a liquid fund is calculated for 365 days. Further, investors can get their withdrawals processed within 24 hours.
What is exit load?
Definition: Mutual funds companies collect an amount from investors when they join or leave a scheme. This fee charged is generally referred to as a ‘load’. Exit load is a fee or an amount charged from an investor for exiting or leaving a scheme or the company as an investor.
What is cut off time in mutual fund?
The cut-off time determines what Net Asset Value (NAV) you get to buy or sell units of your mutual fund scheme. … You can be allotted the NAV of the same day, the previous day or the next day according to the time you submit your application and funds. The cut-off time is 2 pm for liquid funds.