Do I invest in insurance schemes or liquid funds?

No, absolutely not. Liquid funds and insurance serve completely different end goals and cannot be substituted for one another. Insurance is taken as protection against unforeseen circumstances or events be it related to life or health or any other aspect of livelihood. Investment is done with the sole motive of wealth generation or fulfilling certain financial goals.

Liquid funds are generally tapped for their ability to provide instant redemption whilst generating returns comparable to a savings account. They can be employed to park emergency funds or excess cash reserves which aren’t earmarked for any other purpose at present. Thus, insurance and liquid funds both serve a significant purpose in your overall portfolio.