Cash Parking on WebNotes

How to invest in Parag Parikh Liquid Fund (parking surplus)

Sun, 17 May 2026 00:00:00 +0000

The Liquid Fund is where short-horizon cash sits. A salary inflow you’ll redeploy next month, a tax refund waiting for the next equity SIP, a property-sale advance, a maturity from another investment, the emergency fund itself, anything you want to earn slightly more than a savings account on while keeping it accessible in a business day or two. PPFAS has two routes for it: the standard SelfInvest portal (full transactional control, all schemes in one view) and the dedicated CashFlex mobile app (launched 21 June 2024, focused on the cash-management use case with a slicker interface and the T+0 Instant Access Facility front-and-centre). Both share the same SelfInvest credentials and the same underlying folio.

Arbitrage fund vs liquid fund for short-term cash parking

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

Arbitrage funds and liquid funds are both used for short-to-medium term cash parking in India, but they differ in investment strategy, risk profile, and most significantly, tax treatment. The tax difference is the primary reason arbitrage funds are often chosen over liquid funds for investors in higher income tax brackets for holding periods of one year or more.

Structure

Arbitrage fund

An arbitrage fund exploits price differentials between the cash (spot) and futures markets for the same equity security. The fund simultaneously buys a stock in the spot market and sells the equivalent quantity in the futures market, locking in the price difference (the “spread”) as a near-risk-free return. At futures expiry, both positions are closed.

Liquid fund vs sweep-in FD

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

A sweep-in fixed deposit (also called an auto-sweep FD or sweep facility) is a product offered by banks in India that automatically converts savings account balances above a specified threshold into short-term fixed deposits, earning the higher FD rate while retaining the liquidity of the savings account. When the account holder initiates a withdrawal or payment that exceeds the savings balance, the linked FD is automatically broken in LIFO or FIFO order to fund the transaction.