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Get a fund for your spare cash
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Have some spare cash languishing in your savings account, but don't want to block
it in a fixed deposit or risk investing it in shares?
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Cash Funds or Ultra Short Term Bond Funds could be your answer. Cash Funds (also
known as Liquid Funds) or Ultra Short Term Bond Funds invest in fixed return instruments
of short maturities. Their main aim is to provide a high level of safety and earn
a modest return.
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Of course, you will not get the spectacular returns of an equity fund. But neither
will you face the same level of risk.
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Only when you have surplus money that you need to park for a short period of time
in safe instruments, especially money that might be idling in a bank savings account.
These funds are ideally meant for money that you do not want to block in longer
term investments such as shares, fixed deposits, government bonds, etc. Consider
such funds when you need the money back in a few days, few weeks or a few months.
These are not suitable when you need to invest for periods greater than 6 months.
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- A low risk fund suitable for an investment horizon of 1 day to 90 days
- Returns are calculated for the number of days you remain invested
- No entry or exit loads
- High liquidity - Under normal circumstances, we will endeavour to ensure that
an investor gets his money back one day after putting in a valid redemption request
- Tax efficient as dividends are tax-free in your hands (post deduction of 14.1625%
dividend distribution tax for individual investors - inclusive of cess and surcharge)
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