Liquid Fund - Q & A Forum

Q & A Forum › Category: Mutual Funds › Liquid Fund

Raman asked 9 years ago

Hi , I have 5 lacs in FD which will mature in another 2 months. Would it be wise to invest the whole in a liquid fund and do a SWP once a quarter to invest in some SIP ? If yes , please suggest a good liquid fund with corresponding SIP to invest. If no, please suggest some alternative to invest the Lump sum. I would like to invest for 5 years.

5 Answers

0 Vote Up Vote Down

Sreekanth Staff answered 9 years ago

Hi, Do you have any existing Mutual Funds in your portfolio?

0 Vote Up Vote Down

Raman answered 9 years ago

Yes, I have HDFC balanced (G), ICICI prufocussed blue chip (G),Franklin Prima Plus (G) ,HDFC mid cap opportunities(G) etc.,Birla SL Top 100 Fund(G) etc, Birla SL MIP II Wealth 25(G) etc

0 Vote Up Vote Down

Sreekanth Staff answered 9 years ago

Hi, You may consider to set up STPs (Systematic Transfer plans) from Liquid fund to equity oriented ones, especially to HDFC balanced fund & ICICI / Birla Top 100 funds. Kindly note that STP can be created between two funds which are from same fund house. For ex: HDFC liquid fund to HDFC balanced fund. Birla Sunlife CashPlus to Birla Top 100.

0 Vote Up Vote Down

Raman answered 9 years ago

Thanks for the reply. But what would be better - To invest entire 5L in one liquid fund or to split it into two or more ?

0 Vote Up Vote Down

Sreekanth Staff answered 9 years ago

Hi, As one has to choose a liquid fund from the same fund house, I believe one liquid fund which has good Credit rating on the securities invested can be considered.