Beyond Jio BlackRock Mutual Fund, 5 liquid funds with instant withdrawal feature

However, instant withdrawal from liquid funds is capped at ₹50,000 or 90% of the total units, whichever is lower. The redeemed amount from liquid funds with the instant withdrawal facility is transferred to the investor's bank account within a few minutes

Here's a look at some liquid funds that allow instant withdrawal:

• Axis Liquid Fund: It offers insta redemption feature with which you can redeem your money instantly with a simple online request. The money is credited to the account in a few minutes.
• Nippon India Liquid Fund: It allows the real time redemption through its instant redemption facility and the Nippon India Any Time Money Card
• Aditya Birla Sun Life Liquid Fund: It offers instant withdrawals up to ₹50,000 with the Active Account app.
• HDFC Liquid Fund: It offers instant access facility (IAF) that facilitates the crediting of the redeemed amount to the investor’s bank account instantly. The redeemed amount can be credited at any time of the day or any day of the week, regardless of bank working hours.
• DSP Liquidity Fund (Growth): It offers an instant redemption facility, which uses the IMPS facility of banks to transfer funds immediately. Maximum ₹50,000 and a minimum ₹100 can be withdrawn instantly from this fund. This facility is not available to NRIs

Please note that the above details are based on information available on the respective websites of the funds at the time of writing. Investors should check all details about the fund on their own before investing.

How to withdraw?

Investors are required to raise a redemption request on the online platform or the app where they are holding their units of the liquid fund. The funds requested for withdrawal are credited to the bank account in a few minutes.

Are they better than a savings account?

In terms of instant withdrawal, liquid funds are not at par with a bank savings account. The latter allows you to withdraw/redeem/transfer any amount at any time. But in liquid funds, you cannot withdraw the full amount at once. Even those liquid funds with the instant withdrawal facility allow you to withdraw only up to ₹50,000.

When it comes to returns, liquid funds are currently better than savings accounts of most banks.

Liquid funds should not be seen as a replacement for savings accounts. Liquid funds are not risk-free. In contrast, a savings account in a bank offers a guarantee for up to ₹5 lakh.

However, the instant withdrawal facility can be used by small investors to take advantage of investment opportunities, as and when they arise in the market, or for short-term goals.