Liquid Funds

Why Liquid Funds? My Current Account deposit is getting me 0%. How do I get return with safety & liquidity???

I can’t take risk, its company money.

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Liquid Funds 1. Returns – Vs Zero Return in Current Account Money sleeps in Current Accounts, Liquid Fund generates Market driven Yield t Accounts, Liquid Fund generates market driven yield

Current Account

Liquid Funds

2. Manage Cash Flows Efficient management of Inflow & Outflow can generate returns from Liquid Fund even on weekends even on weekends

Inflow

Outflow

Surplus

Liquid Fund 2

3. Liquidity On redemption, money credited into your account in morning next working day.

Liquid Fund generates yield on daily basis. One can invest even for 1 day. Liquid Fund generates yield on daily basis. One can invest even for 1 day.

Invest

Redeem

Money back with Return

4. Safety Fund Invests into high credit rated CDs , CPs , CBLO , T –Bill etc with every short term maturity. into high credit rated CDs, CPs, CBLO, T- Bills etc with very short-term maturity.

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It must be difficult to handle

Expertise

Time

Manpower

Paper work

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It’s SIMPLE

Purchase

You send us purchase transaction on fax before 2 pm

Units Allotted

Original documents to be collected next day

Your Bank transfers money to our account before 2 pm

Redemption

You send us redemption transaction on fax before 3 pm

Units Redeemed

Original documents to be collected next day

Our Bank transfers money to your account in morning on next working day

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In other words

• For Purchase & Money transfer before 2.00 pm. • • • • •

Applicable NAV = T-1 (T=Transaction day) for Liquid Funds Redemption latest by 3:00 pm. You can do it on the same day for one day investment. Direct credit of redemption proceeds on the next working day. Redemption request should mention amount or units to be redeemed under the relevant option of the scheme. Working days: Monday - Friday

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An Illustration

Case 1 – 1 DAY Parking

Mr. Smart from M/S. XYZ Co decided to park his Current Account surplus for one day only i.e. Wednesday, since he has payment obligations to honour on Thursday. On Wednesday Step 1 – 11 am - He faxed Purchase request to MF office Step 2 - 11.05 am - Instructs banks to transfer money via NEFT Step 3 – 1.30 pm - Got confirmation from MF RM on receipt of Fund in MF account Step 4 – 2.30 pm – Faxed Redemption request to MF office Step 5 – Units allotted to Mr. Smart’s Company at Tuesday NAV & redeemed at Wednesday NAV, thus resulting into 1 day accrual return On Thursday Step 6 – Money credited in Company’s Current Account by 10.30 am, comfortable enough to meet his outflows Step 7 – He received Statement of Account confirming his transactions & for reconciliation purposes Mr. Smart is happy with return, which otherwise in current account would have earned ZERO. And it was simple as well. 7

An Illustration

Case 2 – WEEKEND parking

On Friday, Mr. Smart from M/S. XYZ Co decided to park his Current Account surplus for Saturday & Case 2 – WEEKEND Sunday (2 days).parking since he has payment obligations to honour directly on Monday. Saturday & Sunday being holiday. On Friday Step 1 – 11 am - He faxed Purchase request to MF office Step 2 - 11.05 am - Instructs banks to transfer money via NEFT Step 3 – 1.30 pm - Got confirmation from MF RM on receipt of Fund in MF account Step 4 – 2.30 pm – Faxed Redemption request to MF office

Step 5 – Units allotted to Mr. Smart’s Company at Thursday NAV & redeemed at Sunday NAV, thus resulting into 3 days accrual return On Monday Step 6 – Money credited in Company’s Current Account by 10.30 am on Monday comfortable enough to meet his outflows Step 7 – He received Statement of Account confirming his transactions & for reconciliation purposes Mr. Smart is happy with return, which otherwise in current account would have earned ZERO. And it was simple as well. 8