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How to Invest in Liquid Funds.

            A liquid fund is a mutual fund scheme that invesys in money market securities with a low maturity time period of 91 days or less.These funds offers a  safe and secure option for parking surplus funds or to set aside an emergency funds.

                     

                     Investment amount

   An investment in liquid fund can be made with a application amount as indicated in the scheme information.
        
                            FORM
   The investor can make a fresh investment either by filling up an application form and issuing an investment cheque or making an online application using the mutual fund website or app e.g.Groww paytmmoney 

                          KYC
    To be able to invest in any fund or scheme the investor should have KYC formalities completed witha KYC registration agency.A KYC forms needs to be filled up and documents(adress and identity proof) should be submitted,with originals for this purpose.
   
                   LIQUIDITY

      In addition to normal modes of redemption available to mutual fund scheme's,some liquid funds also allow any time redemption facility up to certain. Amount.
   
                       Taxation
   
       Liquid funds are subject to taxation  applicable to debt funds.if the liquid fund investment is held for more than three years,it is subject to long term capital  gains which is taxable at 20% with indexation if the investment is held for three years or less than that capital gain is taxed at the mariginal(highest)tax slabe rate applicable to the assessee.
  
  Point to be note:-
- once KYC done,KYC valid across all mutual funds,one doesn't need to repeat it for each investment.

      ~Tejshiv

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