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