Liquid funds are a category of debt mutual funds which invest in very short-term market instruments like treasury bills, government securities and call money. According to Sebi's definition, liquid funds can invest in debt and money market securities with maturity of upto 91 days only.
After Sebi’s latest guidelines for liquid funds, these schemes are supposed to become safer than before. Liquid funds can now invest maximum 20 per cent of their assets in one sector. These schemes are c ..