NAV of liquid funds

Will someone explain me why N.A.V of liquid funds like LIC MF Liquid funds fall on 18th and 20th march. Is it advisable to buy this funds if say I got 1lac rs but I can need it anytime.?

Liquid funds buy corporate bonds. Now in times like these companies can go belly up due to insolvency.

Better to keep it in savings or FD if you need liquidity in the coming months.

No! Dude, don’t spread panic without any basis.

@S_J have received this query multiple times, will explain what’s happening in a bit.


Not spreading panic. Just advising caution.

Too much uncertainty now.

Besides he needs safety of funds and liquidity.

What i have came to know that there is huge redemption of liquid funds by FIIs and other institutional investors because of which NAV minutely decreased on those days.

Better you keep in saving bank account (6% saving account), if you think you could need it desperately anytime.

Check this

Leaving baddebt thing apart… I was talking about returns… yeah companies can go bankrupt but if funds have invested in corporates which have strong financial low debt can pretty well manage.

How will NAV per unit go down due to selling… is it because of expense level rising for funds…

Price of liquid funds like sbi liquid funds depends upon NAV rather than market force ryt?

And if its because intrest rate has risen…in general market then
why will intrest rate rise in this type of market where no one needs fund for new venture …though they will need for various consumption and surviving factor.? Will the force of funds required for consumption will be that greater that it will bypass the reduced need of funds for new venture and more availability of fund because of people disinvesting from equity market and putting in FD… and lead to intrest rate hike…? Please clear my understanding…thanks