Is it good to invest Rs 5,000-Rs 10,000 idle cash in short term liquid funds that can be withdrawn anytime, and also fetch some income?
The move to invest surplus cash in liquid funds is a good move compared to it being retained in a savings account
Is it good to invest Rs 5,000-Rs 10,000 idle cash in short term liquid funds that can be withdrawn anytime, and also fetch some income?
Mayur Tanna, Nagpur
The move to invest surplus cash in liquid funds is a good move compared to it being retained in a savings bank account. However, you could also explore the FD-linked accounts available with your bank which is not only liquid but which also offers you better returns compared to what a savings bank account offers. You could try and mix your idle cash into both these options for a few months and then decide on which of these work for you and stay invested in that.