What is the primary objective of a Liquid Mutual Fund? Option: High Growth Potential, Capital Protection and Liquidity, Tax Saving, Long-Term Capital Appreciation

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What is the primary objective of a Liquid Mutual Fund?

High Growth Potential

Capital Protection and Liquidity

Tax Saving

Long-Term Capital Appreciation

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What is the main investment focus of liquid mutual funds?

Capital protection and liquidity

Long-term capital appreciation

Speculative trading

Aggressive growth

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How are liquid funds categorized in terms of risk?

"Low-risk mutual funds"

"Medium-risk investment options"

"High-risk mutual funds"

"Risk-free investment instruments"

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Which of the following is NOT a characteristic of Liquid Funds?

Fixed Maturity Period

No Entry and Exit Load

Low-Interest Rate Risk

Variable Minimum Investment

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What types of assets do liquid funds primarily invest in?

"Stocks and high-risk securities"

"Long-term bonds and real estate"

"Short-term assets like commercial paper and treasury bills"

"Precious metals like gold and silver"

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What is the primary reason investors choose liquid funds over savings accounts?

Zero risk

Tax benefits

Potentially higher returns

Higher liquidity