According to Kunal Bajaj, founder and chief executive officer, Clearfunds.com, "On our platform, broadly investors who are buying liquid funds understand the product and use it more for convenience. They often pick the liquid fund of a fund house where they eventually want to switch into an equity fund." The advantage is that you earn returns daily, which are on average better than the average 3.5-4% from your savings back account. Note that these returns are taxed.
