When we put money in liquid funds, should we split the money across multiple liquid funds across fund houses such as ICICI, HDFC etc. ?
Does that increase the safety ?
Or does the safety only depend on the money instruments held and their duration ?
Da-First understand why you chose liquid funds. It is because they invest in short-term debt papers, where the utmost important to them is safety and liquidity. So I don’t think it creates any difference if you invest in different funds or AMCs. Returns may vary and that too not to such an extent. But in reality, no difference in diversification..
Thanks for quick reply.