Apply for a monthly payout fund

Liquid fund is exactly the same as a Fixed Deposit but with advantages, see table below

	Savings A/c	Fixed Deposit	Liquid fund
Capital guaranteed	Yes	Yes	Yes
Interest rate	3%	7-9%	7-9%
Minimum Time	1 day	1 year	1 week
Held with who? Example	Bank HDFC, Axis, ICICI	Bank HDFC, Axis, ICICI	Mutual Fund house Birla, HDFC, UTI
Paperwork when withdrawing	Required	Required	Mobile OTP or Email
Safety of transaction		FD proceeds returned only to your SB a/c	Same
Time for FD withdrawal to reach SB a/c		3-7 days	1-2days
Minimum amount	20,000	50,000	5,000
Tax	Tax free for NRE	Tax free for NRE	Tax free for NRE

When can I use Liquid funds

Persons who have received a large bonus
persons who have just sold a property
as booster for SSIP and SIP
as contigency fund, i.e. we advise clients to maintain 3 months income in Liq funds for emergencies. If the money is in a SB a/c, persons are tempted to spend it

Examples of Liquid Funds

Save 40,000 a year on average

If an individual has 10 Lakhs lying idle in their SB a/c they will be loosing about 40,000 Rs per year in interest. The same idle funds if parked in a Liquid fund would give a much higher return. See table below. Liquid funds are 100% SAFE, exactly like Fixed Deposits, but with the facility to withdraw anytime without loss of interest or penalty, hence the name 'Liquid' fund.

Choose the right Liquid Funds to minimize Tax

Funds from		Interest in SB A/c		Interest in Liq fund G		Interest in Liq fund DDRI
NRE	1,000,000	40,000	(4% less TDS)	88,200	(8.8% less TDS)	63,000	(6.3% Tax Free)
NRO	1,000,000	40,000	(4% less TDS)	88,200	(8.8% less TDS)	63,000	(6.3% Tax Free)
Resident	1,000,000	40,000	(File tax return)	88,200	(File tax return)	63,000	(File tax return)

The bold blue items are recommended. Interest figures shown are indicative as of July 2015 and must be rechecked with scheme documents at the time of investmenthey have