Even though we all have bank accounts, we don’t need to put all our idle money there. There’s another animal that works almost like a bank account but fetches you a bit more than a bank account and is almost as safe as a bank account. It’s called a liquid fund and here’s why it should be there in your portfolio.
Higher returns
Your money that lies in a savings bank account fetches you 4% interest per annum. Some banks offer a slightly higher interest rate of 6%. However, the best liquid funds have returned as high as 7.5-8% on an average in the past 1-year period, daily, on an annualised basis. On returns alone, liquid funds score over a savings bank account.
