Personal Finance

All You Need To Know About Super Saver Funds

July 13, 2020

All You Need To Know About Super Saver Funds

The majority of investors may relate the act of saving money with a bank account. You may, on one hand, refer to the flexibility and high liquidity that comes as an added advantage. However, you might have to manage with a lower return on investment. Super Saver Funds, on the other hand, may help you to make the most out of your investments.

What Is A Super Saver Fund?

Super Saver Fund is an instant-redemption liquid fund that helps you to manage your short-term savings smartly. It is a new-age investment alternative that combines the goodness of a savings bank account with the growth potential of a mutual fund. This fund provides you ready access to cash without sidestepping on the returns aspect.

Benefits Of Investing In Super Saver Fund

When you allocate a part of your portfolio towards the Super Saver Fund, you get to enjoy a number of advantages.

Safety of investments

The fund invests in fixed income options like commercial paper, treasury bills, and other debt and money market instruments. This makes the fund a relatively low-risk investment haven where you may keep your hard-earned money safely.

Instant withdrawals

The best part of the fund lies in it being highly liquid that lets you withdraw your money instantly as and when the need arises. The fund allows daily withdrawals of up to Rs 50,000 or 90% of the invested amount, whichever is lower. The proceeds will get credited to your account within 24 hours during business days.

Higher return on investment

A savings bank account may offer you returns of around 3.5% p.a. On the contrary, when you invest your savings in a Super Saver Fund, you tend to earn higher returns in the short term. However, you need to understand that the fund doesn’t guarantee returns and its performance may vary on account of changes in the interest rate.

Penalty-free withdrawals

The fund charges a nominal fee if you withdraw your money during the lock-in period of 7 days from the date of investment. However, after the lock-in period gets over, you are allowed to redeem your investment without any exit load.

How To Invest In Super Saver Funds?

Investing in Super Saver Funds is an intelligent way to park your surplus funds in the short term. Paytm Money allows you to invest in the fund of your choice in a few easy steps.

Step 1: Download the Paytm Money app to complete your KYC & become investment-ready within minutes

Step 2: On the home screen of the App, go to the ‘Invest’ button at the bottom of the page.

Step 3: On the Discover Mutual Funds for Investments page, tap on ‘Super Saver Fund’ followed by tapping on ‘View Funds’.

Step 4: Select a fund of your choice and ‘Invest Now’ via SIP or the Lump-sum mode and enter the amount of investment. Tap on ‘Proceed to Payment’.

Step 5: Make payment using UPI, Netbanking or by setting an Auto Pay with your bank for automatic deduction of your payments Tap again on ‘Proceed to Payment’ to complete the transaction.

Best Super Saver Funds 2020

Super Saver Funds can be your go-to option to withdraw instant cash and maximize returns on your short-term savings. Enlisted below are a few Super Saver Funds that you may find suitable: