Get Even More Visitors To Your Blog, Upgrade To A Business Listing >>

Liquid Funds deliver 2% extra post Tax Returns than Savings Bank Accounts

ICRA's recent study finds that investors could get additional returns of up to 1.67% post tax in liquid Funds over savings bank accounts. In fact, the difference between the returns of savings account and liquid funds could go up to 3% pre tax.

As banks cut deposit rates due to declining interest rate environment and surplus liquidity after demonetisation, Liquid Funds fetched higher returns compared to savings accounts, says the report.

Other aspects of liquid funds that distributors can play on are instant redemption facility and no exit loads, says the report.

In terms of risk, the report says that liquid funds are relatively less volatile than other Mutual Funds due to high credit quality and short term nature of its underlying instruments.

The rating agency also finds that individual investors have been increasingly investing in liquid funds. The share of individual investors' investments in liquid mutual funds has increased by 34% in just two years. In the meantime, investments in savings bank accounts grew by 20%.

As individuals currently hold only a small portion of their assets in liquid funds, distributors should encourage their clients to invest in liquid funds. Most retail investors invest in mutual fund though equity funds, says the report. "With the arbitrage between liquid mutual funds and savings rate and that between liquid mutual funds and bulk deposit rates likely to continue, the pace of incremental inflows into liquid mutual funds is expected to increase over the near to medium term.


 








Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich

Top 10 Tax Saver Mutual Funds for 2018

Best 10 ELSS Mutual Funds to Invest in India for 2018

1. DSP BlackRock Tax Saver Fund

2. Tata India Tax Savings Fund 

3. Birla Sun Life Tax Relief 96

4. Sundaram Diversified Equity Fund

5. ICICI Prudential Long Term Equity Fund

6. Invesco India Tax Plan

7. Franklin India TaxShield 

8. Reliance Tax Saver (ELSS) Fund

9. BNP Paribas Long Term Equity Fund

10. Axis Tax Saver Fund


Invest in Best Performing 2018 Tax Saver Mutual Funds Online

Invest Best Tax Saver Mutual Funds Online

Download Top Tax Saver Mutual Funds Application Forms


For further information contact SaveTaxGetRich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

OR

Call us on 94 8300 8300




This post first appeared on Prajna Capital - An Investment Guide, please read the originial post: here

Share the post

Liquid Funds deliver 2% extra post Tax Returns than Savings Bank Accounts

×

Subscribe to Prajna Capital - An Investment Guide

Get updates delivered right to your inbox!

Thank you for your subscription

×