Question: Which Is Better Liquid Fund Or Debt Fund?

Is mutual fund is safe to invest?

In a nutshell, mutual funds are safe.

Investors should not be worried about short-term fluctuations in the returns while investing in them.

You should choose the right mutual fund, which is sync with your investment goal and invest with a long-term horizon..

Which is better FD or debt mutual fund?

Experts say, even though FDs offer assured returns, debt funds have the potential to offer higher returns than fixed deposits. Debt funds as a financial instrument have always been considered as a good hedge against market volatility by investors.

Which liquid fund is best?

5. Top 10 Liquid Funds in IndiaFund name5-year average returnsLinkICICI Prudential Money Market Fund Regular Growth7.50%Invest NowKotak Money Market Growth7.44%Invest NowUTI Money Market Fund-Discontinued – Regular Plan-Growth6.95%Invest NowAditya Birla Sun Life Liquid Regular Plan Growth6.92%Invest Now6 more rows•Jan 4, 2021

Can liquid funds give negative returns?

On an average, liquid funds have delivered 0% over the past week, according to data from Value Research and many large liquid funds have actually delivered negative returns. … These are categories that normally do not deliver negative returns, even over short time periods and are considered extremely low risk.

Why did liquid funds give negative returns?

During the recent equity market fall, the debt markets were also becoming volatile and it resulted in negative returns by these very short term debt fund categories. It came as a shock to investors since these funds have not seen such a continuous downfall in the recent past.

Is it right time to invest in liquid funds?

The interest rate of liquid mutual funds is the lowest among all short-term investments due to low maturity period. No entry and exit loads are applicable. Liquid funds are a perfect solution for investors who wish to park their idle cash for a short duration without the risk of Capital Loss.

Is Liquid Fund safe now?

Although liquid funds are not entirely risk-free, however, they are low risk-low returns instruments. As they invest predominantly in debt instruments, they are subject to interest rate risk and credit risk. … In this way, the fund manager reduces credit risk by holding a well-diversified portfolio of securities.

Can I lose money in liquid funds?

Since a liquid fund invests only in short term securities, it’s market value does not respond much when interest rates change in the market. This means that liquid funds do not have significant capital gains or losses. … In market jargon, we say that liquid funds have a very low-interest rate risk.

Which type of fund is best?

Best Mutual Funds in India for 2021Mirae Asset Large Cap Fund. Small Cap Funds. 9.71% 15.87% Invest.Axis Bluechip Fund. Mid Cap Funds. 15.54% 16.61% Invest.ICICI Prudential Bluechip Fund. Mid Cap Funds. 9.01% 14.33% Invest.SBI Bluechip Fund. MultiCap Funds. 8.99% 13.11% … SBI Magnum Multicap Fund. Balanced Funds. 7.5% 13.67%

Which is the safest debt fund?

SynopsisScheme nameInception dateCategoryICICI Pru Corporate Bond Gr11-08-2009Corporate BondKotak Bond S/T Reg Gr02-05-2002Short DurationL&T Money Market Gr10-08-2005Money Market FundSBI Savings Reg Gr19-07-2004Money Market Fund30 more rows•Jul 17, 2020

Which debt fund gives highest return?

5. Top 10 Best Debt Mutual Funds in IndiaFund name3-year returnsRatingsSBI Magnum Constant Maturity Fund Regular Growth10.94%4ICICI Prudential Constant Maturity Gilt Growth11.83%5L&T Triple Ace Bond Fund Growth10.11%4Edelweiss Government Securities Fund Regular Growth10.13%46 more rows•Jan 4, 2021