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What does funds for liquidation mean?

When a fund is up for liquidation, it means that the fund company has decided to either sell off the fund's assets or merge the fund's holdings into another fund, preferably a well-performing fund within the same fund family.

How a liquid fund is processed?

The amount invested in a liquid fund before 2:00 pm of a trading day is processed as per the previous day’s net asset value (NAV), as long as the funds are credited to the asset management company’s (AMC) collection account before 2:00 pm and the application reaches the AMC’s branch before time.

Should I liquidate my Emergency Fund?

If you have a high amount of illiquid assets tying up your money, consider liquidating some of them to finance your emergency fund. If you don’t have illiquid assets you can or want to liquidate, aim to set aside at least a portion of your paycheck to grow your emergency fund.

What are liquid assets?

Liquid assets include cash and other assets that can quickly be turned into cash without losing value. You always want some of your assets to be liquid in order to cover living expenses and potential emergencies. But in a larger sense, think of liquidity as a spectrum: Some assets are more readily convertible into cash than others.

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