If you are looking for short term investments or a fund to park your money, Cube’s liquid fund recommendations might be right for you. In this blog, we’ll cover the basics of Liquid Funds, their benefits and how you can buy liquid funds using the Cube App.
November 7, 2024
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If you are looking for short term investments or a fund to park your money, Cube’s liquid fund recommendations might be right for you. In this blog, we’ll cover the basics of Liquid Funds, their benefits and how you can buy liquid funds using the Cube App.
What Are Liquid Funds?
Liquid Funds fall under the debt funds category. These funds invest in bonds, commercial papers, certificates of deposit, treasury bills, etc.
The defining feature of these funds is the instant redemption facility that allows investors to redeem their investments within minutes. You can consult a Cube wealth coach or download the Cube wealth app.
What Are The Benefits Of Liquid Funds?
Every fund has its own advantages and investors prefer liquid funds because:
Considered to be the safest mutual fund investment because of the short lending duration
Highest liquidity amongst all possible mutual fund schemes
Instant redemption of up to ₹50,000 or 90% of the invested amount (whichever is lower)
The average portfolio maturity period is 91 days
No lock-in period
No entry or exit loads
Who Should Invest In Liquid Funds?
Liquid funds have been known to give comparatively better returns than an average bank savings account. This is why these funds can be an option for emergencies, short term goals, small surplus investments, etc.
Knowing your investment goals and risk profile is paramount before investing in any scheme. That is why we recommend consulting a Cube Wealth Coach so that you can invest in mutual fund schemes based on your goals and needs.
Step 2: Login & Click the “See All Investment” mini shortcut
Step 3: Tap “Learn More” on the Liquid Fund Option
Step 4: Enter the amount you wish to invest & choose one time or SIP
You will then see the recommended fund(s) selected already. You can switch from simple to advanced view if you want to pick a different fund.
Step 5: Pick Your Fund & Make the payment
You can pay via internet banking, UPI or set up an NACH auto-debit.
The best thing about the Cube Wealth app is that we don’t just tell you when to buy a mutual fund scheme, but we also give you advice onwhen to sell.
Our wealth coaches go above and beyond to ensure that you get the best advice to invest wisely. Get a free consultation call today to learn more.
Why Invest Using Cube Wealth?
The Cube Wealth app has made it easy for investors to get access to wealth advisory from some of India’s and the world’s best advisors. We don’t just give you the best recommendations but we suggest investments tailored to suit your needs.
You should invest through the Cube Wealth app because:
Low minimum investment amount
Risk-based investment options
The Quick SIP feature
The Super SIP feature (only available on Cube)
Access to Wealth Coaches
WhatsApp group access with the Cube’s senior leaders and engineering team (Cube Prime)
All Mutual Funds on the Cube Wealth app are hand-picked by our wealth advisor, Wealth First, so that you can invest with ease and think about the long term.
Wealth First has an incredible 19-year track record of beating the average mutual fund by ~50% with a team of wealth professionals with over 250 years of combined experience.
Note: All facts and figures are updated as of 29/09/2020.
While we update our pages regularly, we advise you to check the Cube Wealth App for the latest data.
Check out this video on why you should invest using Cube
FAQs
1. What are liquid funds, and why should I consider investing in them?
Ans. Liquid funds are a type of mutual fund that primarily invest in short-term, high-quality debt instruments, making them a safe and liquid option for parking surplus funds. Investors often use liquid funds to earn slightly higher returns than traditional savings accounts or fixed deposits.
2. Is Cube a reliable platform for investing in liquid funds?
Ans. Cube is a reputable and user-friendly platform for investing in mutual funds, including liquid funds. It provides access to a curated list of funds and offers features like instant redemption and a single investment dashboard for easy tracking.
3. Are there any fees or charges associated with using Cube for investing in liquid funds?
Ans. Cube may charge a nominal fee for its services, but it's essential to check the latest fee structure on the platform. Additionally, there may be expense ratios associated with the liquid funds you invest in, which cover the fund's operating costs.
4. How liquid are liquid funds, and can I withdraw my investment at any time?
Ans. Liquid funds are highly liquid and offer quick access to your invested funds. You can usually withdraw your investment at any time, and the funds are typically credited to your bank account within one business day.
Conclusion
Investing in liquid funds through Cube is a convenient and user-friendly way to park surplus funds and potentially earn higher returns than traditional savings accounts or fixed deposits. Liquid funds are known for their liquidity and safety, making them an attractive option for short-term investments.
on stock picking, poring over excel sheets, financial news, analyzing market trends, tracking the Sensex, researching company fundamentals, comparing mutual funds, reading financial reports, trying to predict the future & losing your sanity!
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