I would like to invest Rs 5,000 in a mutual fund, wherein I am able to withdraw money in 72 hours, if need be. Please suggest a suitable fund.
Most mutual funds process withdrawals within three working days
I would like to invest Rs 5,000 in a mutual fund, wherein I am able to withdraw money in 72 hours, if need be. Please suggest a suitable fund.
Santosh Kawde, Pune
Most mutual funds process withdrawals within three working days. Therefore, you should not worry about being able to get your money when you need it. However, the question to ask is why you want this facility. If you have kept the money for some other need, but only like to park it in a mutual fund in the interim period, choose a liquid fund. This is meant for such purposes. You will earn a small and steady return, and will get your money back in a very short time. In fact during week days if you seek redemption before the banking hours, the money will be credited to your account the next day by noon. On the other hand, if you have the money for the longer term, but only want to be sure if you can withdraw at a short notice; choose any other fund of your choice. You have to keep in mind the fact that the value of such mutual fund units will fluctuate, and if you kept your money for a short period, you may suffer a loss if markets are down during that period.