Suggest me a good liquid Fund

Suggest me a good liquid Fund

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Deal Cadet
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As Banks are giving very less interest on FD , decided to switch some funds to Liquid Mutual Funds , please do suggest some fund with less exit charges .

29 Comments  |  
13 Dimers
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Deal Cadet
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Almost negligible difference in terms of returns between FD and liquid funds nowadays. After the Franklin episodes, stay safe and stay secure with FD.

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Deal Lieutenant
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Move to IDFC for the time being, until you hear “IDFC reduced interest rates ..”

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bridges wrote:

Almost negligible difference in terms of returns between FD and liquid funds nowadays. After the Franklin episodes, stay safe and stay secure with FD.

Franklin problem MFs were debt funds not liquid funds, a big difference.

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Deal Subedar
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If looking for more than 1 month than look for Arbitrage funds also. They usually give around 6% consistent return with negligible risk…

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Deal Cadet
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caks2006407 wrote:

Move to IDFC for the time being, until you hear “IDFC reduced interest rates ..”

yes . thinking to move 3-4 L to a new IDFC account. because of RBI insurance upto 5 la. so less risk. and good interest in current situation.

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guest_999 wrote:

Keep your money in FD in big solid banks(hdfc,sbi,icici,kotak,axis—first 3 are officially given “too big to fail” tag by rbi). Also keep checking my thread:
https://www.desidime.com/discussions/check-your...

this big banks have reduced their interest rate to 5% .

Also RBI’s insurance upto 5 lac is in place, so thinking to move funds to different banks ,

like DCB and Indus ,IDFC.

what’s your opinion on FD with ujjivan or bandhan bank like small banks ?

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drjpatwa wrote:

If looking for more than 1 month than look for Arbitrage funds also. They usually give around 6% consistent return with negligible risk…

thanks bro …did not come to my mind. thanks

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Deal Subedar
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Nippon India Liquid Fund
ABSL Liquid Fund

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Deal Cadet
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i am getting around 5.20% returns since 3 months in liquid funds..are there any better funds with less risk than liquid funds

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Deal Cadet
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PPFAS liquid fund. Don’t expect returns. Invest for capital protection.

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Deal Subedar
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https://cdn0.desidime.com/attachments/photos/621948/medium/IMG_20200621_190033.jpg?1592746627These are returns of both Liquid & Arbitrage funds which I am using since 2 years.
BTW, you can use debit card to invest in ABSL liquid fund in case if you are having high rewarding debit card!
Edit: ABSL has removed the debit card option in payments page.

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MSDfan wrote:


https://cdn0.desidime.com/attachments/photos/621948/medium/IMG_20200621_190033.jpg?1592746627These are returns of both Liquid & Arbitrage funds which I am using since 2 years.
BTW, you can use debit card to invest in ABSL liquid fund in case if you are having high rewarding debit card!

Most Debit cards don’t give reward points for mutual fund spends.

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Deal Cadet
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You can put up-to 1.5 lacs in ppf too which is offering higher rate and has tax benefit. Although money is blocked but the tax free return makes it worthwhile.

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drjpatwa wrote:

If looking for more than 1 month than look for Arbitrage funds also. They usually give around 6% consistent return with negligible risk…

Bad advice, arbitrage funds are not for a typical investor aka if you don’t know what exactly arbitrage funds do & by that I don’t mean reading its definition on wikipedia/sites then you better stay away from it.

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ZitOO wrote:

this big banks have reduced their interest rate to 5% .

Also RBI’s insurance upto 5 lac is in place, so thinking to move funds to different banks ,

like DCB and Indus ,IDFC.

what’s your opinion on FD with ujjivan or bandhan bank like small banks ?

Your choice but be mentally prepared for the worst case scenario of your money getting stuck in some bank for a few weeks to 2-3 months.

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Deal Lieutenant
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ZitOO wrote:

yes . thinking to move 3-4 L to a new IDFC account. because of RBI insurance upto 5 la. so less risk. and good interest in current situation.

pm me for referral, You will get 250 amazon coupon + 250 cashback

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Deal Subedar
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kurk wrote:

Most Debit cards don’t give reward points for mutual fund spends.

I am not aware of that bro…. It’s just an added benefit. Btw, I used to get for my BOI dc.

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guest_999 wrote:

Bad advice, arbitrage funds are not for a typical investor aka if you don’t know what exactly arbitrage funds do & by that I don’t mean reading its definition on wikipedia/sites then you better stay away from it.

Can u explain in detail what u want to say? I mean what are drawbacks of it or any other concern of Arbitrage funds?

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drjpatwa wrote:

Can u explain in detail what u want to say? I mean what are drawbacks of it or any other concern of Arbitrage funds?

Entire concept of arbitrage fund is based on futures & derivatives which are the toughest thing to master in stock markets but don’t just take my words for it.
@bikidas2060 @marketdimer @BubbleBoyChickenLittle

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Deal Cadet
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Other option is 7% FD (1 YEAR ONLY) paytm – induslnd bank FD.

DO NOT RECOMMEND HEAVY DEPOSIT

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Entertainer
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guest_999 wrote:

Entire concept of arbitrage fund is based on futures & derivatives which are the toughest thing to master in stock markets but don’t just take my words for it.
@bikidas2060 @marketdimer @BubbleBoyChickenLittle

There are few arbitrage opportunities in the market (like for a simple example, 3-4% difference between Futures price and cash price). But last only for a few seconds / hardly mins as they get noticed by algos. And within seconds, those opportunities disappear. Choosing arbitrage funds varies individual to individual. Should be consulted with your financial advisor.

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guest_999 wrote:

Entire concept of arbitrage fund is based on futures & derivatives which are the toughest thing to master in stock markets but don’t just take my words for it.
@bikidas2060 @marketdimer @BubbleBoyChickenLittle

If that’s the only cons. Then fund manager is trained to tackle such things. They have algo & sophisticated software who helped to manage it easily. They can trade both leg simultaneously in cash & future so error which normal people can make to trade 1 leg at a time, they usually don’t make it.

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drjpatwa wrote:

If that’s the only cons. Then fund manager is trained to tackle such things. They have algo & sophisticated software who helped to manage it easily. They can trade both leg simultaneously in cash & future so error which normal people can make to trade 1 leg at a time, they usually don’t make it.

You are missing the point, fund manager is not Warren Buffett. Futures & derivatives are highly unpredictable in volatile markets like present times. Why take unnecessary risk when financial experts even suggest to avoid equity markets as a major portion of your current investment portfolio? Keep the same amount of money in large cap or multi cap & return may be a bit less but risks are also much less.

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guest_999 wrote:

You are missing the point, fund manager is not Warren Buffett. Futures & derivatives are highly unpredictable in volatile markets like present times. Why take unnecessary risk when financial experts even suggest to avoid equity markets as a major portion of your current investment portfolio? Keep the same amount of money in large cap or multi cap & return may be a bit less but risks are also much less.

With due respect, I totally disagree with ur statement. Kindly go through in detail, what Arbitrage funds do. Don’t get mislead with it as equity fund or gambling in future.

& Infact higher volatility in market is good for Arbitrage funds. Arbitrage opportunity increases many folds in such markets.

Only cons as per me in Arbitrage funds is when fund inflow in Arbitrage funds is higher & there is less Arbitrage opportunity then return will decrease.

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drjpatwa wrote:

With due respect, I totally disagree with ur statement. Kindly go through in detail, what Arbitrage funds do. Don’t get mislead with it as equity fund or gambling in future.

& Infact higher volatility in market is good for Arbitrage funds. Arbitrage opportunity increases many folds in such markets.

Only cons as per me in Arbitrage funds is when fund inflow in Arbitrage funds is higher & there is less Arbitrage opportunity then return will decrease.

I respect your viewpoint & that’s your choice so I won’t say more. From whatever I understand about arbitrage funds, they look riskier to me compared to large caps & multi caps funds but riskier doesn’t mean it can’t earn but to me risk is not worth it.

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Deal Subedar
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guest_999 wrote:

I respect your viewpoint & that’s your choice so I won’t say more. From whatever I understand about arbitrage funds, they look riskier to me compared to large caps & multi caps funds but riskier doesn’t mean it can’t earn but to me risk is not worth it.

I also respect ur view bro.

That’s why I am saying please go in more details about Arbitrage funds. They are least risky than equity large cap or multi cap. Infact comparison of Arbitrage funds with this equity fund is not appropriate. Arbitrage funds are & should be comparable to debt instruments. Category of Arbitrage funds in Equity funds is misleading. Its least risky bro. They are selling same stock, same quantity in Future & buying same stock with same quantity in cash. At the end of monthly expiry, both rate will be same & they make money such way.

Even if market crashes 50%in 1 month, return of Arbitrage funds won’t be negative. They are substitutes of debt funds & if keeping more than 3 years then tax advantage of being equity fund.

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drjpatwa wrote:

I also respect ur view bro.

That’s why I am saying please go in more details about Arbitrage funds. They are least risky than equity large cap or multi cap. Infact comparison of Arbitrage funds with this equity fund is not appropriate. Arbitrage funds are & should be comparable to debt instruments. Category of Arbitrage funds in Equity funds is misleading. Its least risky bro. They are selling same stock, same quantity in Future & buying same stock with same quantity in cash. At the end of monthly expiry, both rate will be same & they make money such way.

Even if market crashes 50%in 1 month, return of Arbitrage funds won’t be negative. They are substitutes of debt funds & if keeping more than 3 years then tax advantage of being equity fund.

I have read this article when it came in newspaper last year & I think it is still valid. I agree with this article that Arbitrage funds are neither good for short term(less than 3-4 months) nor good for long term(say more than a year). It does seem less risky & good for investment duration of 5-6 months especially now but I always consider my investment in MFs for at least an year or more so I guess these are not for me. Do read the article & if you don’t agree then do post your reasons here so others may have more viewpoints to base their decision on.
https://timesofindia.indiatimes.com/business/in...

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