Want to Beat Inflation??? Liquid Funds can be the answer

There is a big problem in India. The pople donot understand the difference of SAVINGS & INVESTMENTS.
Bank lying in a bank account yielding 3.5% is a saving & money invested in Equity Mutual funds, stocks, Real Estate, Gold are investments.

Now, that 3.5% return earned on savings account is accountable to tax. So the net in hand comes around 2.5%

One person came to me & said " I get 7% on my savings money". Yes It is true, exactly double the savings account return.
We have all been advised by TV analysts that put your salary of atleast 6 months in savings account of a bank & your Relationship Manager also induces you to put money in your bank savings account.

Dear Reader, I am referring to Liquid Funds. The other name to it can be Cash Fund. It has three features

• High Liquidity
• Lower Risk
• Consistent Returns

Of course, I must say that banks guarantee 3.5% returns whereas MFs doesnot guarantee you anything. Over the next 3 to 6 months, our economy is expected to witness huge hunger for short term money because of tight liquidity factors & this is time when liquid funds are going to perform well.

For investors, who are ultra savvy, ultra short term funds are also available in the market.

So the bottomline is Dear investors think logically & rather than putting your hard earned money in bank savings account, I suggest you to put in liquid funds yielding handsome 7% returns

Regards

Mayank Gupta

Wealth Bazaar Financial Managers

+919967052367