- Do liquid funds attract tax?
- Is it good time to invest in liquid funds?
- Is it right time to invest in liquid funds?
- How Exit load is calculated?
- Is Liquid Fund better than FD?
- Is there any risk in liquid funds?
- Can I withdraw money from mutual fund anytime?
- Which mutual fund has no exit load?
- Can liquid funds give negative returns?
- Is there a penalty for closing a mutual fund?
- What is exit load for liquid funds?
- Do debt funds have exit load?
- Can I withdraw money from liquid fund?
- When can I withdraw from liquid fund?
- Is there any exit load in mutual fund?
Do liquid funds attract tax?
Liquid funds held for more than three years are eligible for long term capital gains tax with indexation.
If you sell before three years, you have to pay tax as per your tax slab.
If you opt for the dividend option, the fund will be subject to a dividend distribution tax of 29.12%..
Is it good time to invest in liquid funds?
Liquid funds have no lock-in or very low lock-in period. The interest rate of liquid mutual funds is the lowest among all short-term investments due to low maturity period. … Liquid funds are a perfect solution for investors who wish to park their idle cash for a short duration without the risk of Capital Loss.
Is it right time to invest in liquid funds?
Ideally, liquid funds are suitable for achieving short-term financial goals. Since some funds generate around 8% to 9% returns, they should be preferred over a regular savings bank account which offers returns in the range of 4% to 6%.
How Exit load is calculated?
Exit load is typically charged as a small per cent of the Net Asset Value prevailing at the time when you sell your schemes. How is it calculated? … You will get Rs 99 per unit [Rs 100 – Rs 1 (1 per cent of 100)] on redemption. The total amount which you will get will be Rs 49,500 (Rs 99 X 500 units).
Is Liquid Fund better than FD?
Whereas, in case of a liquid fund, an investor can take out any sum as per the requirement. … “A purely conservative investors may go for bank FD,” says Vohra. Also, in a falling interest rate scenario, investors will be better off with bank FDs which will allow to lock in higher interest rates available.
Is there any risk in liquid funds?
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. … Liquid funds ensure that your money is invested only in superior creditworthy instruments.
Can I withdraw money from mutual fund anytime?
There is nothing to prevent you from withdrawing your mutual fund holdings as long as it is an open-ended fund. … Liquidity is one of the big advantages of investing in mutual funds which is not available in many other asset classes. So, the answer is you can absolutely withdraw.
Which mutual fund has no exit load?
Different mutual fund schemes have different periods in which they levy exit loads. But many mutual fund schemes do not charge any exit load, especially the debt mutual funds….1. Indiabulls Liquid Fund.Rating by Groww5 starExpense Ratio0.07%Exit LoadNILTypeOpen-ended5 more rows•Dec 18, 2019
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. Ultra Short Duration Funds have given -0.48%, money market funds have given -0.51% and low duration funds have delivered -0.91%.
Is there a penalty for closing a mutual fund?
Like stocks, mutual funds have three-day settlement, so your cash will be available in three business days. … If your mutual funds are in a retirement account and you are younger than 59 1/2 years old, the penalty for cashing out is 10 percent plus any income taxes owed on capital gains.
What is exit load for liquid funds?
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 .
Do debt funds have exit load?
While debt mutual funds have no lock-in periods, some of the funds carry an exit load which is a charge deducted at source for early withdrawals. The exit load period varies from fund to fund while some funds have nil exit load as well.
Can I withdraw money from liquid fund?
Liquid mutual funds with instant redemption facility. Withdraw a maximum of Rs. 50,000 or 90% of invested amount within 30 minutes to your bank account.
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 there any exit load in mutual fund?
Exit load is a cost that an investor needs to bear if he or she sells the mutual fund units before a predefined time frame. Typically, equity mutual fund schemes levy an exit load of 1% if the units are sold within one year of buying. Simply put, it is a mechanism to deter investors from premature withdrawals.