The money invested by Liquid Mutual Funds in very short-term debt instruments like, treasury bills, commercial papers and certificates of deposits. The funds are typically utilized to store money in a safe form, over a short-term, and receive returns that are marginally higher than those of a regular savings account. Having the liquid funds, high liquidity and low risk make it suitable to park the excess cash or to meet short term financial requirements without fears of market fluctuation.
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