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Fixed Interest Rates Are Falling, What to Do Next???

  June 3,2022

Savings Rate Reduced to a Historic low of 2.7% Things to do @ this juncture & it’s time to act now!!!

My Dear Investors!!!

Greetings from Team Fortune Planners!

It’s almost a genetic tendency of everyone to think that Savings bank accounts are the safest sanctuaries for their surplus cash, to use it anytime for their unplanned requirements, unexpected situations, or simply as a matter of comfort. I suppose it is the only thing in the world that remains largely unquestioned even though the returns are meagre.

So, what’s the need to talk about it now?

With SBI cutting its rate as low as 2.7%, while ICICI dutifully following suit by slashing the rate to 3%, its high time we open our eyes and realize the need to park in our funds in a better place which offers better quality in all the key metrics. Gone are the days of just savings, now only investment rules the roost.

Here comes the focus on the alternative investment – Liquid / Ultra Short-Term Funds.

It can be considered as the best available option for better utilization of idle funds compared to saving accounts. Before diving deep to get to know of it, we should understand why we need it. Liquid fund offers-

RISK – Not entirely risk-free, but low risk since market dependent. May be one or two days it will be meagre negative will get adjusted couple of days later for sure.

RETURN – Nearly twice the return on idle money (5% – 6%) compared to SB account (2.7%).

GOAL-BASED – Withdraw investment at any time, the best strategy for an emergency fund.

LOCK-IN PERIOD- Lock-in period of just7 days in liquid, NO lock-in period other short-term funds & No Exit Load.

AFFORDABILITY- One-time investment or a SIP as small as Rs 500.

As you all aware that Liquid funds invest in liquid assets for a shorter duration of time. Liquid Funds invest only into instruments with fixed incomes and high credit ratings such as Commercial Papers, Government Treasury Bills, Certificates of Deposits, etc. Many corporate put their money into liquid funds, because of the very low risks involved, which proves the trustworthiness of these funds.

These funds invest in instruments that have a maturity of up to 91 days. The point to be noted here is that liquid funds allow investors to invest their money for a very short period of time, even a couple of days or months, and earn a return out of it on the period of their investment.

By this you can understand that this is a highly liquid and as well as a decent return provider for the short-term investment. You can opt to invest for a few days or months, depending on your financial goals. The fund returns will be based on the prevailing market rate. The best thing is that there is no exit load applicable to the investors of liquid funds.

The schemes are also available in variants like Daily, Weekly, or Monthly Dividend and Growth option.

Not only would you be able to make steady returns over short time periods, but also choose to redeem a part or the entire amount of investment within 24 hours if needed.

It’s time to act fast and make the best of the market opportunity available.

To know more, reach @ 9884349173

Fortunately, Yours

Padmanaban B

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