Now on Liquid funds pls check on moneycontrol.com and other sites are really they only giving 6-7%?????
Let me quote an example for you from moneycontrol.com
As per them 5 star liquid fund these days is LIC MF Liquid Fund (G)
Please check the returns below.
Absolute Returns (as on Aug 11, 09)
Period Returns (%) Rank #
1 mth 0.4 3
3 mths 1.3 7
6 mths 2.9 4
1 year 7.9 6
2 year 17.2 5
3 year 26.4 3
5 year 41.7 2
# Moneycontrol Rank within 65 Money Market Schemes
Mind you this return that you see is what your money would have gained, had you invested in this fund given years ago.i.e. Rs 10000 invested 5 years back would have become Rs 14170 thats barely 8% annual return. It is not that it gave 41.7% return 5 years ago..then 26.4% return 3 years ago...and so on.
Liquid fund are mostly invested by institution/companies to maintain their cash. Retail investor rarely invests in such funds.
If somebody still wants to buy liquid instrument..then instead of going to a MF..he may directly purchase liquidbees etc from market. Again, that too depends upon personal preference.
Hope this answers your question.
Regards
Yogesh Tiwari
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