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Glossary L

Launch Date

The date on which a scheme is first made open to the public for subscription

Liquid Funds /Money Market Funds

Funds investing only in short-term money market instruments including treasury bills, commercial paper and certificates of deposit. The objective is to provide liquidity and preserve the capital. Due to the low degree of risk, they generally provide lower returns than other avenues.


The cash and cash equivalent assets available with a fund to meet expenses and immediate redemption requirements of the investors. It refers to the ability to buy or sell an asset quickly or the ability to convert to cash quickly.

Liquidity Risk

It is the risk in a fixed income security as well as in equities that these securities may not be sold in the market at close to their value. Liquidity risk is characteristic of narrow markets like India.


A charge that may be levied as a percentage of NAV at the time of entry into the Schemes or at the time of exiting from the schemes. A charge by the fund when an investor buys (entry load) or sells (exit load) units in the fund.

Lock In Period

The period after investment in fresh units during which the investor cannot redeem the units. It is normally a key feature of Tax schemes.