Liquid funds have a lower expense ratio than other types of funds. So that you can earn some higher returns.
Liquid funds are the least risky amongst the classes of debt funds since the maturity period of the underlying securities is within 91 days.
The redemption request is completed within 24 hours on business days. Some liquid funds also provide the option of immediate redemption.
There is no lockin period for liquid funds. You may redeem your unit at any time. If you leave within seven days after the date of assignment, you must pay a minor fee in the form of an exit load.