Close Menu
Fund Focus News
    Facebook X (Twitter) Instagram
    Trending
    • How to Invest in Bonds in India: Beginner’s Guide
    • Comprehensive Guide to Discount Bonds: Yield to Maturity and Key Challenges
    • Small-cap funds or Gold ETFs? Anil Singhvi shares his top mutual fund picks for investors
    • Investing in Hong Kong ETFs: Key Insights and Strategies
    • Consistent winners: Mutual funds that beat their benchmarks over 1, 3, 5 and 10 years – Mutual Funds News
    • Investors bet big on large and mid-cap funds
    • SIF Funds Explained: The High-Conviction Alternative Redefining Smart Investing
    • Bitcoin ETFs Shed $2.1B in June So Far as Market Selloff Deepens
    Facebook X (Twitter) Instagram
    Fund Focus News
    • Home
    • Bonds
    • ETFs
    • Funds
    • Investments
    • Mutual Funds
    • Property Investments
    • SIP
    Fund Focus News
    Home»Mutual Funds»Recurring deposit v/s liquid mutual funds: Which is safer?
    Mutual Funds

    Recurring deposit v/s liquid mutual funds: Which is safer?

    December 12, 2025


    Recurring deposit v/s liquid mutual funds: Which is safer?

    What’s the story

    For those looking for short-term savings, recurring deposits and liquid mutual funds are two popular options.
    Both provide different benefits and risks, making it important for investors to understand the difference between the two.
    While recurring deposits guarantee fixed returns over a certain period, liquid mutual funds invest in short-term securities with variable returns.
    Here’s a look at how each option works, and its pros and cons.

    Understanding Recurring Deposits

    Recurring deposits are savings schemes offered by banks where you deposit a fixed amount every month for a certain period.
    The interest is usually higher than regular savings accounts but lower than other investment options like fixed deposits or mutual funds.
    The principal amount is returned at maturity along with the interest earned.
    This option is ideal for risk-averse investors wanting predictable returns.

    Exploring liquid mutual funds

    Liquid mutual funds invest in short-term debt instruments such as treasury bills, commercial papers, and so on.
    They offer higher liquidity than traditional savings accounts or fixed deposits as investors can withdraw their money at any time without penalty.
    However, the returns are not guaranteed and depend on market conditions.
    These funds are suitable for those willing to take some risk for potentially higher returns.

    Comparing returns and risks

    While recurring deposits offer fixed returns, liquid mutual funds come with variable returns depending on market performance.
    Historically, recurring deposits offer around 5% to 7% interest per annum, while liquid mutual funds can yield anywhere between 4% and 6% net of fees but with more volatility.
    The risk factor is higher with mutual funds due to market fluctuations but can also be rewarding.

    Assessing liquidity options

    Liquidity is an important factor when choosing between these two options.
    Recurring deposits lock your money until maturity, which can be anywhere between six months to 10 years, depending on the bank’s policies.
    Liquid mutual funds allow you to redeem your units anytime during business hours, making them more flexible for those who may need immediate access to cash without penalties or charges.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email

    Related Posts

    Small-cap funds or Gold ETFs? Anil Singhvi shares his top mutual fund picks for investors

    June 11, 2026

    Consistent winners: Mutual funds that beat their benchmarks over 1, 3, 5 and 10 years – Mutual Funds News

    June 11, 2026

    Investors bet big on large and mid-cap funds

    June 11, 2026
    Leave A Reply Cancel Reply

    Top Posts

    The Shifting Landscape of Art Investment and the Rise of Accessibility: The London Art Exchange

    September 11, 2023

    Comprehensive Guide to Discount Bonds: Yield to Maturity and Key Challenges

    June 11, 2026

    Charlie Cobham: The Art Broker Extraordinaire Maximizing Returns for High Net Worth Clients

    February 12, 2024

    The Unyielding Resilience of the Art Market: A Historical and Contemporary Perspective

    November 19, 2023
    Don't Miss
    Bonds

    How to Invest in Bonds in India: Beginner’s Guide

    June 11, 2026

    Investing in bonds is a smart way to diversify your portfolio, earn steady income, and…

    Comprehensive Guide to Discount Bonds: Yield to Maturity and Key Challenges

    June 11, 2026

    Small-cap funds or Gold ETFs? Anil Singhvi shares his top mutual fund picks for investors

    June 11, 2026

    Investing in Hong Kong ETFs: Key Insights and Strategies

    June 11, 2026
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    EDITOR'S PICK

    Covered call ETFs have high yields but come with a trade-off

    October 23, 2025

    SCRIPTS & SIPS Comes to the Colony Theatre

    October 11, 2024

    Gold ETFs Vs Physical Gold: Where to invest? 10 to 15-year returns compared – Money News

    March 28, 2025
    Our Picks

    How to Invest in Bonds in India: Beginner’s Guide

    June 11, 2026

    Comprehensive Guide to Discount Bonds: Yield to Maturity and Key Challenges

    June 11, 2026

    Small-cap funds or Gold ETFs? Anil Singhvi shares his top mutual fund picks for investors

    June 11, 2026
    Most Popular

    🔥Juve target Chukwuemeka, Inter raise funds, Elmas bid in play 🤑

    August 20, 2025

    💵 Libra responds after Flamengo takes legal action and ‘freezes’ funds

    September 26, 2025

    ₹9000 monthly SIP can help you retire at 45 with ₹2 lakh monthly pension

    May 5, 2026
    © 2026 Fund Focus News
    • Get In Touch
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.