The cost of living is on a constant rise making investments a necessity rather than a choice. Everyday expenses are so high that saving for the future seems more and more difficult but must be done. It is important to start investments right from the very first job. It will secure a comfortable future as well as the present. The whole concept of idle cash and liquid funds seem oblivious to most. Majority of the people don’t go beyond opening a basic savings account and lose out on a number of investment opportunities that give a much higher return. While a saving account only gives 4-6% returns, a liquid fund can increase the returns to 8-9%. All your money does not need to lie in one place!
So, what is the solution? What can smart investments secure a better tomorrow and grow our returns?
Best ways to make money out of idle cash
- Mutual funds remain the best and most secure way to make money from idle cash and liquid funds. When it comes to safety, liquidity, and returns, Mutual Funds are the most preferred investment option.
- Excess funds can also be invested in the debt and money market securities that have a short maturity time. It reduces the risk of the volatile nature of interest rates.
- Liquid funds also reduce the amount of tax you pay, being one of the highest advantages of it.
- One can reduce unnecessary spending on the debit card with a liquid fund as the money is swiped from the account.
When it comes to managing funds it is important to take extra caution regarding one’s risk profile. Having a liquid fund diminishes the risk profile by a great margin and promises higher returns that guarantee a better result in the long run. All the ideal cash needs to be invested in a smart way for it to grow and become higher in value. A liquid fund is the most effective way to manage one’s ideal cash and secure a better outcome. Managing your finances is a task that requires thorough planning and the expertise of a professional. A financial coach will be able to help you plan the best investments and the most suited ways to make the most of your ideal cash.
Here are all the liquid funds available – All liquid funds