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Finding it difficult to save money? Liquid Funds can help!

PhonePe Team|2 min read|20 February, 2020

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Finding it difficult to save money? Liquid Funds can help!

Most Wealth Managers recommend saving at least 20–30% of monthly income to help plan for future financial needs. While some people are able to follow this rule, most find it difficult to save for some reason or the other. If you fall in the latter camp, you may find Liquid Fund extremely useful to inculcate the savings habit. But before we discuss how, let’s first understand some of the common reasons why people find it difficult to save.

Here are five common reasons which makes it difficult for people to save

  1. Keeping all money in the savings account, thus making it convenient to spend on impulsive purchases that may otherwise be avoidable.
  2. Reluctance to invest as investing often means locking-in money for a certain time, with no access to those funds in case of an urgent and important need
  3. Some people believe that it doesn’t make sense investing small sums of money and that they need to accumulate a larger sum to invest.
  4. Not having enough knowledge and information to choose suitable savings and investment options
  5. Lack of discipline or sheer laziness in taking investment decisions

So, how can Liquid Fund help you save?

Whatever may be your reason for not being able to save, Liquid Funds can help overcome that challenge due to its simple, safe and flexible nature. Here’s why.

  1. Investing in liquid funds will help you set aside money outside your savings account which means you are less likely to spend that money on impulsive purchases.
  2. You can withdraw money from Liquid Fund instantly anytime* 24×7 if you indeed have an urgent need for money. Up to 90% of your balance in the liquid fund upto a daily limit of ₹ 50,000 will be credited within a few minutes and the balance will be credited into your bank account within 2 business days.
  3. Liquid Funds allow you to save even as small as ₹500. A regular saving habit can go a long way in building a larger amount over a period of time.
  4. Liquid Fund is a very simple and safe product which is suitable even for those who are new to investments or who do not have enough knowledge about investment options.
  5. If you lack discipline to save, you can just set up a Systematic Investment Plan in Liquid Fund for investing a fixed amount every month on a fixed date of the month

So while on one hand, Liquid Fund can help you save in a disciplined way, it also grows your money at a significantly higher rate compared to savings account, with a high level of safety. What’s more! You can now invest and withdraw your money from Liquid Fund with just a few clicks using PhonePe.

To know how, watch out for our next post.

So, start saving NOW with the help of Liquid Fund and build your corpus without being fearful of locking your money.

Click here to know more about Liquid Funds.

* A very small exit load of 0.007%, 0.0065%, 0.006%, 0.0055%, 0.005% and 0.0045% is applicable if you withdraw your money within 1 day, 2 days, 3 days, 4 days, 5 days and 6 days respectively.

Mutual Funds are subject to market risk. Please read the scheme information document carefully before investing.

PhonePe Wealth Broking Private Limited | AMFI — Registered Mutual Fund Distributor ARN- 187821.

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