Investing
Liquid fund
A very low-risk debt fund for parking money you may need within days or weeks.
A liquid fund invests in very short-term instruments that mature in under 91 days, keeping risk and volatility extremely low.
It is a smarter home for idle cash than a savings account, often earning a bit more while staying easy to withdraw.
It is a common place to park an emergency fund or a lumpsum waiting to be moved into equity via STP.
For example
Instead of ₹3L sitting in a savings account at 3%, a liquid fund can earn closer to 6-7% while you can still redeem in a day.