This fund is popular as it is the only fund that pays dividend on a ‘daily’ basis in addition to weekly, fortnightly, and monthly options. This suits businessmen/traders who suddenly find that they have a cash surplus, which generally happens due to foreign exchange fluctuation, especially in export transactions, and/or additional profits due to a ‘spiral’ in the cost of the product in the market. The ones who desire to park their surplus monies in a safe fund for a short-term period can choose the daily, weekly, or monthly dividend plans. It is easily cashable. One gets the cash within a couple of days of notice. It enjoys income tax benefits. Besides, the tax is deducted at the fund companies’ end – the individual need not bother about calculating and paying. It is considered to be a low- to average-risk fund as there is no lock-in period. This fund does not have any entry/exit load. So, individual investors need not weigh this option
while choosing the ‘ideal’ fund.