Why should I invest in liquid funds? What are the benefits of these funds?

Ideally one should invest in liquid funds when there is surplus money lying idle and needs to be deployed for a short period of time.Benefits:Investments in liquid funds are considered low risk/moderately low risk investments.These funds have historically given better returns that traditional savings instruments.Investors could even invest for as less as one day and withdraw the money anytime they want.Usually no entry and exit loads.