I have fixed deposits and a savings account with a bank. I want to invest in a liquid fund. The fund house is a sister concern of the bank. Can I transfer the money directly to the liquid fund?
—P. Mishra
When you invest in a fund, the money needs to be sent to the ‘scheme account’ maintained by the fund house for that scheme. It does not matter which bank’s account the money comes from—whether or not the bank is in the same family of companies. I do not quite know what you mean by ‘transfer the money directly’. When you make a payment for an investment, the money does go directly to an account maintained by the mutual fund company regardless of the bank originating the payment. I suggest you verify with the fund house as to what is the safest and most expedient way of transferring money, and employ that mechanism.
