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5,00,000 (five Lakh) became 1,22,00,000 in 22 year through Liquid fund (very low risk).

Maybe most people are aware of the stock market but most of them will not be awarded the debt market.
we have many options to invest like property, gold, shares, but there is another way to invest in the debt market. it's less risky than the shares market.

let's talk about liquid and saving fund.

Liquid Fund as the name suggests liquidity means convert your asset into cash anytime.

A liquid fund is a substitute for a saving account(Bank account ).
saving account interest  rate ----- 3.5 -6%
liquid fund interest rate-----------6 to 8%


How 5 Lakh Became 1.22 Cr in 22 Year.

For example

Sandeep has 5,00,000 savings. he wants to invest for 22 years for his baby girl but he can't take the risk.

Now Sandeep has many options....................

FD                                = 5,00,000@7.25% for 22 years =   24.29 Lakh ( No Risk)

Bond                            = 5,00,000@9% for 22 years      =    35.42 Lakh (almost risk free)

Debenture (CD/NCD) = 5,00,000@9% for 22 years      =     35.42 Lakh (credit risk)

Liquid fund                  = 5,00,000@7% for 22 years       =     23.21 lakh (very low risk)

Mutual fund(Lumpsum) = 5,00,000@12% for 22 years    =     69.15 Lakh ( moderate risk )

Mutual fund (SIP)     = 3000pm@ 15-18% for 22 years = 62.11 L - 1.01 Cr (moderate to high risk)



These are some way to invest. Now Sandeep is thinking that if he keeps his money in FD, it will become 24.29 Lakh after 22 years and if he invests in the mutual fund than have risk.
Sandeep was looking for something so that he can get sufficient corpus.

Sandeep can take a risk on profit which gains from the principle Amount.

The financial Consultant suggests to Sandeep that he should keep his money in a liquid fund and earning amount must be invested in an equity mutual fund. this is called STP (Systematic Transfer Plan).

for example

5,00,000@7% = 35000/year = 2919/month

2900 SIP in HDFC TOP 100 FUND = 2900@19% after 22 year =  1.15cr

Total invest amount is = 7,65,600.

total amount in Liquid fund = 622982 (622982-500000= 122982 appriciated )

Now total amount = 11500000+622982= 1.22 cr

Net profit = 12200000-500000= 1.17cr

So this was the simplest way by which Sandeep got a hug Amount with very low risk.



















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