Very short duration schemes used to hold money for days or weeks rather than years.
Liquid and overnight funds invest in money market instruments with very short residual maturity — treasury bills, commercial paper, certificates of deposit and overnight repo. They are used to park money that has a near-term purpose: a payment due next month, sale proceeds awaiting deployment, or a business float.
These are not deposits and they are not guaranteed, but the duration risk is low by construction. We open and service the folio, set up instant redemption where the scheme offers it, and run the transfers when you need the money back.
Key features
- Overnight, liquid and ultra-short duration categories as defined by SEBI
- Redemption usually credited the next business day, with instant redemption in some schemes
- Graded exit load on liquid funds for redemptions within the first seven days
- Commonly used as the source folio for a Systematic Transfer Plan into equity
- No lock-in, no maturity date and no penalty for early exit beyond the stated load
- Suitable as a parking route rather than a growth route
Risk disclosure. Mutual fund investments are subject to market risks. Read all scheme related documents carefully before investing. Pyrramid Wealth Distributors distributes this product and does not manufacture it. Nothing here is a recommendation or investment advice.