 "funds")
With savings bank (SB) account returns declining, retail investors are turning to liquid funds. These funds added 220,000 folios in 2025, up to July 31, compared to 64,300 in 2024 and 4,345 in 2023, according to a recent Business Standard report.
Liquid funds invest in securities with maturities of up to 91 days, including treasury bills, commercial papers, certificates of deposits and other money market instruments. Some funds offer instant redemption up to a limit, though most follow a T+1 cycle. Requests submitted before 2 p.m. are settled the next day.
Reasons for the shift
Larger banks have cut savings
