What are fixed deposits considered in terms of risk in India?

High-risk investments Medium-risk investments Extremely low-risk investments Investments with unpredictable risk

What is the main investment focus of liquid mutual funds?

Aggressive growth Speculative trading Capital protection and liquidity Long-term capital appreciation

What is the typical maturity period for liquid funds?

Up to 30 days Up to 91 days Up to 180 days Up to 365 days

How are returns from fixed deposits taxed in India?

Tax-free Capital gains tax only Added to annual income and taxed per applicable slab Fixed tax rate regardless of income

What is the key difference in liquidity between fixed deposits and liquid funds?

Fixed deposits offer higher liquidity Liquid funds offer higher liquidity Both have equal liquidity Neither offers liquidity

What type of investor is a fixed deposit ideal for?

Investors with high risk tolerance Investors seeking short-term gains Investors with extremely low to zero risk tolerance Investors looking for maximum returns

What makes liquid funds potentially riskier than fixed deposits?

Investment in volatile stocks Exposure to market fluctuations Lack of government regulation Uncertain fund manager expertise