LIQUID FUNDS: A COMPARATIVE EVALUATION WITH EQUITY MUTUAL FUNDS

The channelization of household savings in equity and equity related financial instruments has always been main objective of all policymakers in India over the last few decades, particularly after liberalization of Indian economy in 1991. With this objective at the background, the investment in Mutual funds has been promoted by offering various tax incentives and educating investors' community with other benefits associated with investment in Mutual funds. Under the present scenario, investors have opportunity to invest in various kinds of Mutual funds. Even among Mutual funds, the choice with regard to return and risk appetite can be exercised. The present study aims to highlight the difference in return offered by Equity Mutual funds and Liquid funds against the benefits available to the investors in case of Liquid funds. Various statistical tests such as KS test, Levenes' Test , t-test ,etc. have been employed using SPSS to arrive at meaningful conclusions from the available quantitative data