Cryptocurrency Q&A
Is it worth investing in liquid funds?
Is it worth investing in liquid funds?
MysticGalaxy
Fri Oct 25 2024
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7 answers
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I'm considering investing in liquid funds, but I'm not sure if it's a worthwhile investment. I want to know if liquid funds are a good option for short-term investments and if they provide stable returns with low risk.
7 answers
NebulaChaser
Sun Oct 27 2024
Liquid funds are generally perceived as having a relatively low-risk profile when compared to other mutual fund categories.
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Michele
Sun Oct 27 2024
However, it is important to note that they are not entirely devoid of any risks.
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Nicola
Sun Oct 27 2024
One of the risks associated with liquid funds is credit risk, which arises from the possibility of the issuer of the securities in the fund defaulting on their payments.
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MysticRainbow
Sat Oct 26 2024
Another risk is interest rate risk, which occurs when changes in interest rates affect the value of the securities held by the fund.
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SarahWilliams
Sat Oct 26 2024
Liquidity risk is also a concern, as it relates to the ability of the fund to meet redemption requests without significant disruptions to its portfolio.
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