The Jio BlackRock Liquid Fund has recently entered the financial market as an open-ended scheme offering low-risk investment options. While many consider liquid funds as alternatives to traditional savings accounts, understanding their redemption timelines is essential before investing.
Here’s what makes Jio BlackRock Liquid Fund’s withdrawal features different from a savings bank account.
Unlike savings accounts where funds can be accessed instantly at any time, Jio BlackRock Liquid Fund does not permit same-day redemption.
According to the fund’s Scheme Information Document, redemptions are only processed on business days, generally from Monday to Friday, excluding public holidays. Once a valid redemption request is submitted, the amount is credited to the investor’s bank account within 3 business days.
This delay arises because mutual fund transactions go through multiple processing stages including NAV calculation, order execution and banking clearance. The fund manager is legally obliged to return the funds within 3 business days, failing which the investor becomes eligible for compensation at the rate of 15% per annum.
Despite the delayed access to funds, liquid mutual funds like Jio BlackRock offer a balance between liquidity and returns. Historically, their returns often surpass those of traditional savings accounts, while assuming relatively lower credit and interest rate risks. This makes them suitable for short-term goals, temporary parking of surplus funds, and as a cash management tool for individuals and businesses.
Read More: Upcoming NFOs This Week: 8 New Schemes are Set to Open!
The fundamental difference between a liquid fund and a savings bank account lies in accessibility. Savings accounts offer round-the-clock availability through ATMs, online transactions, and UPI. In contrast, liquid funds are investment instruments governed by regulatory and fund processing timelines and, hence, cannot ensure immediate liquidity.
Savings accounts also come with lower returns, typically in the range of 2.5% to 4%, while liquid funds often generate annualised returns between 5% and 6.5%, depending on the prevailing interest rates. The tax implications and associated exit loads, if any, should also be reviewed before making a switch between the 2 financial products.
Jio BlackRock Liquid Fund offers a competitive, low-risk investment option with better returns than a traditional savings account. However, it does not provide instant withdrawal features, as redemption can take up to 3 business days.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in securities are subject to market risks. Read all related documents carefully before investing.
Published on: Jul 7, 2025, 2:42 PM IST
Team Angel One
We're Live on WhatsApp! Join our channel for market insights & updates