Liquid funds are frequently referred to as debt mutual funds that invest in treasury bills, fixed deposits, commercial papers, and other types of debt securities (investments).
Investment in liquid funds is advisable for investors who need ways to store their cash, similar to saving it in a regular bank account. These should be used for people who may need quick access to their money but also would like to earn interest on their cash.
– Liquid funds have relatively low risk, and it takes 91 days or less for the underlying securities to mature– They are a great option when you want to build up emergency savings– They are most suitable for risk-averse investors