Here's a step-by-step guide to investing in Bajaj Finserv Liquid Fund

Investing in mutual funds has become increasingly popular due to the potential for earning reasonable returns on investments, even with minimal capital. However, some investors prioritise stability and ready access to funds over higher returns. Such investors can consider the Bajaj Finserv Liquid Fund as a relatively low-risk/low to moderate risk and high-liquidity investment option.

In this article, we will provide a step-by-step guide on how to invest in the Bajaj Finserv Liquid Fund, ensuring that you make informed decisions and achieve your financial goals.

• Table of contents

1. Bajaj Finserv Liquid Fund
2. Step-by-step guide to invest in Bajaj Finserv Liquid Fund
3. Tax implications

Bajaj Finserv Liquid Fund

The Bajaj Finserv Liquid Fund is an open-ended liquid scheme designed for investors who seek less impact on capital, low/low to moderate risk, and high liquidity. It is a mutual fund that primarily invests in money market and debt securities with a maturity period of up to 91 days. This investment approach seeks to minimise interest rate risk and maintains a moderate level of credit risk, making it a suitable option for conservative investors.

Step-by-step guide to invest in Bajaj Finserv Liquid Fund

Determine your investment goals and risk tolerance

Before investing in any mutual fund, including the Bajaj Finserv Liquid Fund, it's essential to define your investment goals and assess your risk tolerance. Understanding your financial objectives and the level of risk you are willing to take will help you make the right investment decisions. The Bajaj Finserv Liquid Fund is suitable for investors seeking the relative stability of their capital along with high liquidity.

KYC (know your customer) compliance

To invest in any mutual fund in India, you need to be KYC-compliant. KYC is a one-time process that involves providing your identity and address proof to the mutual fund or a KYC registration agency (KRA). You can complete this process by submitting the required documents and photographs at a KYC registration point. This can be done online or at the offices of registered mutual fund distributors.

Understand the scheme details

Prospective investors are urged to review the Scheme Information Document (SID) and Statement of Additional Information (SAI) provided by the AMC before considering an investment in this scheme. It is strongly recommended that investors seek guidance from professional financial and tax advisors to understand the taxation implications associated with investing in the scheme.

Select the plan and option

The Bajaj Finserv Liquid Fund offers two plans:

Regular Plan: In the regular plan, you invest through a distributor, and a commission may be charged.

Direct Plan: In the direct plan, you invest directly with the mutual fund company without the involvement of a distributor.

Fill out the application form

Whether you choose the physical route or the online platform, you'll need to fill out the application form. Make sure to provide accurate information and double-check the details you provide.

Decide on the initial investment amount you want to allocate to the Bajaj Finserv Liquid Fund. You can start with the minimum amount specified by the fund house. You can make the payment through multiple modes, including net banking, NEFT, RTGS, or a demand draft.

Tax implications

Be aware of the tax implications of your investment. The Bajaj Finserv Liquid Fund is a debt fund, and the gains are subject to capital gains tax. Consult with a tax advisor for personalized guidance on tax planning.

FAQs:

What is Bajaj Finserv Liquid Fund's aim?

Bajaj Finserv Liquid Fund's primary goal is to provide investors with an open-ended liquid scheme that has less volatility, lower risk/low to moderate risk, and high liquidity. It seeks to achieve this objective by primarily investing in money market and debt securities with a maturity period of up to 91 days.

What are the main steps to follow to invest in Bajaj Finserv Liquid Fund

To invest in Bajaj Finserv Liquid Fund, follow these key steps: Determine your investment goals and risk tolerance, ensure KYC (Know Your Customer) compliance, select the plan and option, fill out the application form, make the investment payment, nominate a beneficiary, and monitor your investment. You can also seek the help of a distributor to make an informed investment decision.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully. This document should not be treated as endorsement of the views/opinions or as investment advice. This document should not be construed as a research report or a recommendation to buy or sell any security. This document is for information purpose only and should not be construed as a promise on minimum returns or safeguard of capital. This document alone is not sufficient and should not be used for the development or implementation of an investment strategy. The recipient should note and understand that the information provided above may not contain all the material aspects relevant for making an investment decision. Investors are advised to consult their own investment advisor before making any investment decision in light of their risk appetite, investment goals and horizon. This information is subject to change without any prior notice.