Investing for a short period can help investors to generate enough returns which can help fulfill their short-term financial goals. This may include financing a foreign trip, creating an emergency fund, or making payments for an immediate important purchase.
However, fixed deposits and other traditional investment solutions may not deliver the same amount of returns that the investors may want for their short-term investment goals. In such cases, liquid funds can serve as the best investment solution for investors. But what are liquid funds?
Liquid Funds
Liquid funds are debt-based funds. The funds offer investors the opportunity to make investments in short-term investment based instruments like treasury bills and certificates of deposit. Known for their high liquidity and higher returns, liquid funds can help investors generate exponential returns in the short term by delivering protection from market volatility.
Low risk along with high liquidity make liquid funds the best investment solutions for short-term investment goals. Moreover, one can find various asset management companies that offer their liquid funds for investment. The Tata Mutual Fund and its liquid plans serve as the best option that can generate steady returns along with protection from any kind of market-based financial risk. Let us explore the benefits of Tata Mutual Fund liquid plans:
High Liquidity
The Tata liquid funds offer an opportunity to sell fund units easily within a short span of investment. Moreover, Investors can easily sell their bought units for the liquid funds in a short period thereby by helping them to generate emergency funds.
Zero Exit Load Charges
Another great benefit of selecting Tata liquid funds for investment is the zero liquid charges. Investors can redeem the units of the Tata liquid fund within a short period without worrying about any kind of extra exit load charges.
Exponential Returns
Tata liquid funds can help generate exponential returns in a small period which other forms of investment may fail to deliver. High returns with low-risk make liquid funds the best option for short-term investments.
How to make the best use of Tata liquid funds for short-term investing?
Emergency Fund Creation
Investors can create an emergency fund by making an investment into the best Tata liquid fund. A short-term investment for a period ranging between 3 to 6 months can help investors generate enough returns that can help in creation of an emergency fund to manage essential expenses.
Fund Short-Term Important Purchases
Investors through investment in a Tata liquid fund can fulfill their short term fund requirements. This includes purchasing an essential gadget for work or entertainment purposes or funding a trip to a foreign destination.
Systematic Transfer Plans
Another great benefit/use of investment in the Tata liquid funds is access to systematic transfer plans. With investments and returns from Tata liquid funds, investors can fulfil their long-term financial goals by making investment in equity-based mutual friends.
Conclusion
Tata liquid mutual funds are known for their liquidity, security and exponential returns generating ability. Careful investment into a liquid mutual fund can help investors generate the best returns in a short period that can match the ultimate short-term financial goals.
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