What are Liquid Funds? What are the benefits of investing in Liquid Funds?
Liquid funds are a type of mutual funds that
invest in securities with a residual maturity of up to 91 days. Assets invested
are not tied up for a long time as liquid funds do not have a lock-in period.
- No lock-in period: Withdrawals from liquid funds are processed within 24 hours on business days.
- No entry and exit load: Unlike FDs, there is no penalty for exiting or breaking them.
- Lowest interest rate risk: Lowest interest rate risk because of high liquidity
- Taxation: Dividends received are tax-free. However, taxation is applicable on capital gains.
- Diversification: Investing a certain portion of your excess cash in liquid funds helps you to meet emergency expenses and shield yourself from volatility of equity investments.
- NAV of liquid fund doesn’t fluctuate much as other funds.
- Unlike other debt funds where NAV is calculated only for business days, NAV for liquid funds is calculated for 365 days.
What is smallcase? How are they different from Mutual Funds?
Smallcases are a new way to invest in stocks. A smallcase is an intelligently weighted basket of upto 50 stocks that reflects a theme, idea or strategy. Smallcases are centred around: A trending market theme like rising rural demand or A financial ...
How to redeem Pledged mutual funds ?
A customer cannot directly redeem mutual funds which are pledged. They will have to first unpledge these units then place a redemption order.
Where can I see the margin received against pledged funds?
Once a customer has successfully pledged his holding units, it will take up to 10 minutes for the margin to be updated in the system. Once the system is updated, the customer can check the collateral in the mutual funds section of the funds page. On ...
What are the charges for adding funds?
You can add funds in 3 ways to your trading account. To see these in detail, CLICK HERE Charges for adding funds: Net banking UPI IMPS Rs.10 Free Free
How to Withdraw Funds from Trading Account to Bank Acccount?
If you wish to withdraw funds from trading A/c following are the ways: Website Platform: Login to www.5paisa.com >> Click on the amount beside Mutual Funds >> Click on Pay out Mobile Platform: Login to our 5paisa Mobile App >> Menu >> Trade >> Funds ...