Liquid funds are meant to park your surplus cash and where you can withdraw your money in a short-time. Since these schemes can invest in securities that mature up to 91 days, these aren't supposed to be as liquid as overnight funds. But since large corporations used to withdraw from liquid funds within a day or two, managing liquidity became a problem for those investors who stayed on slightly linger. Hence, last year, capital market regulator The Securities and Exchange Board of India (SEBI) introduced exit loads for liquid funds for withdrawals made up to seven days from investments.