Download presentation
Presentation is loading. Please wait.
Published byClaud King Modified over 6 years ago
1
What are Liquid Fund? 0% in Current Account Cash Flows
Higher Post Tax Return High Liquidity Liquid Funds Return on Idle funds CDs & CPs Money Market Safety
2
LIQUID FUND An Open Ended Scheme with Objective to generate reasonable returns with investments in High Quality Debt & Money Market Instruments. Ideal Investment Horizon:1-90 days. No Entry Load, No Exit Load Redemption on T+1 basis. RTGS & Transfer facility with all major Banks. Rating Profile: 74.65% AAA , 25.34% as Cash & Current Assets Average AUM: Rs 12,501 crores (as on 31st May 2012) CRISIL CPR 3 rating & 4 star Value Research Rating Investment amount: Retail Plan: up to Rs. 1 cr & 1 Crore for the Institutional Plan and 5 Crore for the Institutional Premium Plan. Dividend Distribution Tax (DDT): Retail(Individual) : % Corporate : % (Effective DDT rate is 24.49%) 16 June 2008 2
3
Why Liquid Funds? I can’t take risk, its company money.
My Current Account deposit is getting me 0%. How do I get return with safety & liquidity??? Why Liquid Funds? Bank earning return from our money… Why not we???
4
Liquid Funds 1. Returns – Vs Zero Return in Current Account
Money sleeps in Current Accounts, Liquid Fund generates Market driven Yield Current Account Liquid Funds 2. Manage Cash Flows Efficient management of Inflow & Outflow can generate returns from Liquid Fund even on weekends Inflow Outflow Surplus Liquid Fund
5
3. Liquidity On redemption, money credited into your account in morning next working day. Liquid Fund generates yield on daily basis. One can invest even for 1 day. Invest Redeem Money back with Return 4. Safety Fund Invests into high credit rated CDs , CPs , CBLO , T –Bill etc with every short term maturity.
6
It must be difficult to handle
Expertise Manpower Time Paper work
7
It’s SIMPLE You send us purchase transaction on fax before 2 pm
Units Allotted Original documents to be collected next day Instruction to Bank for Fund transfer Your Bank transfers money to our account before 2 pm You send us redemption transaction on fax before 3 pm Redemption Units Redeemed Original documents to be collected next day Our Bank transfers money to your account in morning on next working day
8
In other words For Purchase & Money transfer before 2.00 pm. Applicable NAV = T-1 (T=Transaction day) for Liquid Funds Redemption latest by 3:00 pm. You can do it on the same day for one day investment. Direct credit of redemption proceeds on the next working day. Redemption request should mention amount or units to be redeemed under the relevant option of the scheme. Working days: Monday - Friday
9
An Illustration Case 1 – 1 DAY Parking
Mr. Smart from M/S. XYZ Co decided to park his Current Account surplus for one day only i.e. Wednesday, since he has payment obligations to honor on Thursday. On Wednesday Step 1 – 11 am - He faxed Purchase request to MF office Step am - Instructs banks to transfer money via NEFT Step 3 – 1.30 pm - Got confirmation from MF RM on receipt of Fund in MF account Step 4 – pm – Faxed Redemption request to MF office Step 5 – Units allotted to Mr. Smart’s Company at Tuesday NAV & redeemed at Wednesday NAV, thus resulting into 1 day accrual return On Thursday Step 6 – Money credited in Company’s Current Account by am, comfortable enough to meet his outflows Step 7 – He received Statement of Account confirming his transactions & for reconciliation purposes Mr. Smart is happy with return, which otherwise in current account would have earned ZERO. And it was simple as well.
10
An Illustration Case 2 – WEEKEND parking
On Friday, Mr. Smart from M/S. XYZ Co decided to park his Current Account surplus for Saturday & Sunday (2 days). since he has payment obligations to honor directly on Monday. Saturday & Sunday being holiday. On Friday Step 1 – 11 am - He faxed Purchase request to MF office Step am - Instructs banks to transfer money via NEFT Step 3 – 1.30 pm - Got confirmation from MF RM on receipt of Fund in MF account Step 4 – pm – Faxed Redemption request to MF office Step 5 – Units allotted to Mr. Smart’s Company at Thursday NAV & redeemed at Sunday NAV, thus resulting into 3 days accrual return On Monday Step 6 – Money credited in Company’s Current Account by am on Monday comfortable enough to meet his outflows Step 7 – He received Statement of Account confirming his transactions & for reconciliation purposes Mr. Smart is happy with return, which otherwise in current account would have earned ZERO. And it was simple as well.
11
Thank You Deepanshu Singhal
Similar presentations
© 2025 SlidePlayer.com. Inc.
All rights reserved.