Indians are by nature excellent savers, almost each and every one of us has at least one savings account in their name. We fall in love with our bank balance once it starts approaching a “nice looking” figure. While a big bank balance looks nice, do you know that you are actually losing your hard earned/saved money if a large amount of money is lying idle in your savings account? This is because the interest rates given by most savings account is around 3.5% to 4%, which is lower than the inflation rate. So instead of growing, your money actually loses its inherent value if kept in savings account.

Although Indians are good savers, they are poor investors. This is because they are so used to keeping their money in savings account and FD’s (another favorite of Indians), that they are only comfortable with vehicles which provide safety and easy accessibility of their money. They shy away from risky investment vehicles even if they provide high interest rates. They are happy with negligible returns as long as their money is secure and safe. It is because of this mindset that majority of Indians fall short of attaining their dream of great riches, in spite of the fact that they save regularly and religiously.

Do you know there is a type of mutual fund available which offers almost the same safety and accessibility of funds as savings account, but offers better interest rates (almost double compared to your regular savings account)?

Yes you read it right, they are called “Liquid Funds” Read More