Plutonomic Savtech Pvt Ltd

Liquid Funds Continue to Hold Advantage Against Overnight Funds After Graded Exit Load Applied by SEBI

This move was introduced to bring in more stability into liquid funds and protect the retail investors. Corporates would park their large sums of surplus money for extremely short periods in liquid funds. High volume redemptions by corporates would put the fund under redemption pressure which would lead the fund to sell securities at a discount to the market price, effectively diminishing returns for retail investors.