LIQUID SCHEMES

LIQUID SCHEMES

Liquid schemes are meant for very short term investors where the investor horizon ranges from a couple of days to around a week or slightly more. The liquid schemes invest the money into overnight call money market and extremely short term options so that there is very risk for investors in terms of a capita loss in these schemes.

Ideally when the investment is made in this manner liquid schemes should not show any fall in their value but the returns will vary depending upon the rates prevalent during the time period of investment. Thus liquid schemes are meant to be the safest type of schemes where the risk for the investor is minimum and returns are consequently lower.