Tell me more about Liquid Funds.
Liquid funds provide 8-9% returns and can be redeemed any day after the units have been allocated without any cancellation charges.
Liquid funds invest in government securities for less than 91 days. They are the least risky products among Mutual funds. They are similar to Fixed deposits but with the added advantage of no cancellation charges!
So if you invest Rs5000 you'd be earning roughly Rs.1 per day! So in 3 months you'd have earned Rs91-92.