Liquid ETFs are a suitable option for short-term investments, providing flexibility and liquidity to investors

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When you have a sum of money to invest for a few years, it's essential to choose schemes that allow easy withdrawal

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Liquid ETFs invest in money market and low-risk overnight securities, offering relatively lower interest rate and credit-related risks

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Liquid ETFs provide a safer investment option compared to other schemes and can be converted into cash immediately if needed

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Investors can purchase liquid ETF units directly from stock exchanges through a demat account and receive dividends on a daily basis

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Dividends received can be reinvested in equivalent units, ensuring the investment remains liquid and accessible

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Liquid ETFs offer a quick return of investment within T+1 days after the sale, preventing liquidity issues for investors

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Liquid ETFs typically have a lower expense ratio since they are not subject to Security Transaction Tax (STT) and custodian charges

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Over a three-month period, liquid ETFs have historically returned an average of 6.3 percent, making them an attractive option for short-term gains

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Investors looking for long-term investments can gradually divert funds from liquid ETFs into the market, seeking average benefits over time

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For individuals trading in the stock market, liquid ETFs can serve as an alternative to keeping money in a broker account, enabling them to earn additional income

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IDBI bank's high interest short term fixed deposit scheme

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Liquid ETFs are a suitable option for short-term investments, providing flexibility and liquidity to investors

When you have a sum of money to invest for a few years, it's essential to choose schemes that allow easy withdrawal

Investing for a Few Years

Liquid ETFs invest in money market and low-risk overnight securities, offering relatively lower interest rate and credit-related risks

Features of Liquid ETFs

Liquid ETFs provide a safer investment option compared to other schemes and can be converted into cash immediately if needed

Safety and Convenience

Investors can purchase liquid ETF units directly from stock exchanges through a demat account and receive dividends on a daily basis

Purchasing Liquid ETF Units

Dividends received can be reinvested in equivalent units, ensuring the investment remains liquid and accessible

Selling and Reinvestment

Liquid ETFs offer a quick return of investment within T+1 days after the sale, preventing liquidity issues for investors

Quick Return of Investment

Liquid ETFs typically have a lower expense ratio since they are not subject to Security Transaction Tax (STT) and custodian charges

Lower Expense Ratio

Over a three-month period, liquid ETFs have historically returned an average of 6.3 percent, making them an attractive option for short-term gains

Potential Returns

Investors looking for long-term investments can gradually divert funds from liquid ETFs into the market, seeking average benefits over time

Long-Term Investment Strategy

For individuals trading in the stock market, liquid ETFs can serve as an alternative to keeping money in a broker account, enabling them to earn additional income

Alternative to Broker Accounts

IDBI bank's high interest short term fixed deposit scheme

Also see: