How to invest in liquid funds via Coin

Tue, 12 May 2026 00:00:00 +0000

Liquid funds are debt mutual fund schemes that invest in money market instruments, treasury bills, commercial paper, and certificates of deposit with a residual maturity of up to 91 days. They are designed to provide returns slightly above savings account rates with near-instant liquidity, making them a popular parking ground for short-term cash.

Zerodha Coin offers direct plans of liquid funds from major AMCs at zero distribution commission, with lower expense ratios than regular plans.

Liquid fund vs savings account

Tue, 12 May 2026 00:00:00 +0000

Liquid mutual funds and bank savings accounts are both commonly used for parking short-term cash in India. Liquid funds are debt-oriented mutual fund schemes regulated by the Securities and Exchange Board of India , investing in money market instruments with a maturity of up to 91 days. Bank savings accounts are deposit products regulated by the Reserve Bank of India (RBI), offering a fixed or floating interest rate on balances maintained.

Both instruments provide ready access to funds, but they differ in return potential, insurance coverage, taxation, and minimum balance requirements.

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How to invest in liquid funds via Coin

Liquid fund vs savings account