Liquid Funds v/s Guilt Egded FundsPresented

Liquid FundsFunds investing in money market and debt instruments with a residual maturity of up to 91 days. The minimum investment amount should be less than Rs 10 lakhs.

• These are primarily used as an alternative for short tem deposits.

• Most schemes have a lock-in period of a maximum of three days to protect against procedural (primarily banking) glitches, and offer redemption proceeds within 24 hours.

• These funds provide good liquidity, low interest rate risk and the prevailing yield in the market.

Advantages• Short-term capital gains tax applies on liquid funds that are

held for less than a year at the income tax slab that one falls in.

• Dividends from liquid funds are tax-free in the hands of investor, which makes them more attractive than bank fixed deposits

• In fact, investing in liquid funds help investors derive greater benefits as compared to storing it in a savings account

• These fund types usually have a lower risk factor & comprise of various money market instruments

• The maturity of instruments held is between three and six months

Guilt Edged Funds•GILT funds invest exclusively into debt securities issued by RBI on behalf of the Government of India or the state governments. •G-Secs come with a wide range of maturities, from a few days to 30 years, so many GILT funds have short term and long term plans. •Short term plans invest money into G-Secs which mature in the next 15-18 months• Long term plans invest into G-Secs which mature in periods up to the next 30years

Liquid Funds Guilt Edged Funds

Liquid funds are mutual fund schemes which invest in very short term commercial papers (CP),certificate of deposits(CD),treasury bills,etc.

GILT funds invest exclusively into debt securities issued by RBI on behalf of the Government of India or the state governments.

Liquid Funds usually have a shorter investment period and can be invested in the form of monthly, weekly or even daily dividends

GILT funds have short term and long term plans. Short term plans invest money into G-Secs which mature in the next 15-18 months. Long term plans invest into G-Secs which mature in periods up to the next 30 years.

Liquid fund consists mainly investment by way of cash certificates, call money etc.

Gilt funds is comprised of Government securities

Funds are not invested in Gold and equity markets

Funds are invested in gold and equity markets

They carry some risk as compared to guilt edged funds

They are issued by the Government of India, & have little risk of default and provide safety of principal to the investors.

Not exposed to interest rate risk Exposed to interest rate risk

SCHEMES AUM NAV RETURN EXPENSE RATIO

FEATURES

HSBC Cash Fund - Direct (G)

324.73 1,214.21 na 0.02http://www.moneycontrol.com/mutual-funds/nav/HSBC-Cash-FundDirect/MHS359

HSBC cash fund- Instt plus

557.75 1211.11 8.8 1 http://www.moneycontrol.com/mutual-funds/nav/HSBC-Cash-Fund-Inst-Plus/MHS033

LIQUID FUNDS

http://profit.ndtv.com/mutual-funds/mf-scheme-details-hsbc-cash-fund-growth-direct-plan_hsbccash-g-directplan

http://profit.ndtv.com/mutual-funds/mf-scheme-details-hsbc-cash-fund-regular-plan-growth_hsbc-cashfund

SCHEMES AUM NAV RETURN EXPENSE RATIO

FEATURES

HDFC Gilt Fund - LTP - Direct (G) 10.79 22.90 na .59

http://www.moneycontrol.com/mutual-funds/nav/HDFC-Gilt-FundLTPDirect/MHD1192

HDFC Gilt Fund- LTP (G 357.32 22.87 4.1 .80

http://www.moneycontrol.com/mutual-funds/nav/HDFC-Gilt-Fund-LTP/MHD013

GILT EDGED FUNDS

• http://www.motilaloswal.com/Broking/Markets/MutualFund/Scheme-Snapshot/HDFC-Gilt-Fund-Long-Term-Plan-%28G%29/788/1

• http://www.motilaloswal.com/Broking/Markets/MutualFund/Scheme-Snapshot/HDFC-Gilt-Fund-Long-Term-Plan-Direct-%28G%29/17096/1