LIQUID FUNDS A Terriffic alternative to your low-interest savings account What are Liquid Funds? PENALTY ANYTIME WITHDRAWAL G O V T . O F I N D I A SECURITIES A class of debt mutual funds that allow ANYTIME withdrawal No penalty/load for exit from the scheme. Invests in safe, short-term, debt instruments. ATM cards available with some funds. A class of debt mutual funds that allow ANYTIME withdrawal No penalty/load for exit from the scheme. Invests in safe, short-term, debt instruments. ATM cards available with some funds. Is your money idling away in a savings account? Invest your surplus money in LIQUID FUNDS # Are they better than your Savings Account? 4.0% 4.0% 9.1% 8.8% 9.0% 4.0% 2011-2012 2012-2013 2013-2014 GAIN Rs.2,005 GAIN Rs.4,500 Interest on savings bank (%) # Liquid Fund returns (%) Annual returns between April-March Returns annualized for 2013-2014, based on current returns Actual returns between April 1 – Sep 30, 2013 Source - RBI Rs. 1,00,000 for a period of 6 months Lower taxes when compared with taxes on bank interest. Can generate income through dividend payouts. Allows reinvesting the dividends as units and keeps your tax outgo low. Create an emergency fund that you can withdraw anytime Use it to temporarily park any large sums you receive Save for short-term goals such as vacation or other obligations such as paying your insurance premium Use it to systematically invest in to other mutual fund products 4 Smart Ways of using Liquid Funds RE-INVEST DIVIDEND T A X Building your liquid kitty REGULAR EXPENSES ONE-OFF EXPENSES www.fundsindia.com With Liquid Funds You gain TWICE THE BANK SAVINGS INTEREST With Liquid Funds You gain TWICE THE BANK SAVINGS INTEREST www.fundsindia.com