+91-22-489139096 Best Liquid Mutual Funds 2025
In common terms, Best Liquid Funds are Debt Mutual Funds or rather money market Mutual Funds with the only difference being in the investment duration. Liquid Funds invest in very short money market instruments like the certificate of deposit, treasury bills, commercial papers etc.
The investment duration of these funds is very short, generally ranging from a couple of days to a few weeks (it can even be one day!). The average residual maturity of liquid funds is less than 91 days as they invest in securities which individually have a maturity upto 91 days. Being a short-term debt fund, these funds are highly suitable for investors looking for low-risk investments for short duration.
The low maturity period of best liquid funds helps fund managers to fulfil the redemption demand of investors easily. In the market, there are various liquid fund investments available.
Why Invest in Liquid Funds?
- Liquid funds have no lock-in or very low lock-in period.
- The interest rate of liquid mutual funds is the lowest among all short-term investments due to low maturity period.
- No entry and exit loads are applicable.
- Liquid funds are a perfect solution for investors who wish to park their idle cash for a short duration without the risk of capital loss.
Liquid Funds better than Saving Bank Account?
Investing in liquid funds are any day a better option on investment as compared to putting money in popular saving Bank account schemes.
Owing to its familiarity and institutionalized nature of saving bank accounts, an average Indian taxpayer has more trust in them. However, it seems they are not the most popular short-term investment anymore. This is due to the rising acceptance of mutual funds by investors with different investment goals. Your hard earned money that lies in a savings bank account fetches you only 3.5% interest per annum. However, the best liquid funds have returned as high as 6.5-7.5% on an average in the past 1 year period, on an annualized basis.
So, on returns alone, liquid funds score over a savings bank account. If you have a raise or a bonus coming your way, invest in liquid funds and party later.
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Fund Selection Methodology used to find 6 funds
6 Best Liquid Funds India FY 25 - 26
Fund NAV Net Assets (Cr) 1 MO (%) 3 MO (%) 6 MO (%) 1 YR (%) 2024 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Axis Liquid Fund Growth ₹2,995.35
↑ 0.52 ₹37,358 0.5 1.5 2.9 6.5 6.6 5.98% 1M 9D 1M 12D Edelweiss Liquid Fund Growth ₹3,440.53
↑ 0.63 ₹10,214 0.5 1.5 2.9 6.5 6.5 5.92% 1M 2D 1M 2D UTI Liquid Cash Plan Growth ₹4,412.98
↑ 0.70 ₹24,570 0.5 1.5 2.9 6.5 6.5 6% 1M 11D 1M 11D Tata Liquid Fund Growth ₹4,236.57
↑ 0.64 ₹22,790 0.5 1.5 2.9 6.5 6.5 6.04% 1M 15D 1M 15D DSP Liquidity Fund Growth ₹3,840.45
↑ 0.67 ₹21,344 0.5 1.5 2.9 6.5 6.5 5.98% 1M 2D 1M 6D Aditya Birla Sun Life Liquid Fund Growth ₹433.433
↑ 0.08 ₹53,926 0.5 1.5 2.9 6.5 6.5 6.06% 1M 6D 1M 6D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 6 Jan 26 Research Highlights & Commentary of 6 Funds showcased
Commentary Axis Liquid Fund Edelweiss Liquid Fund UTI Liquid Cash Plan Tata Liquid Fund DSP Liquidity Fund Aditya Birla Sun Life Liquid Fund Point 1 Upper mid AUM (₹37,358 Cr). Bottom quartile AUM (₹10,214 Cr). Upper mid AUM (₹24,570 Cr). Lower mid AUM (₹22,790 Cr). Bottom quartile AUM (₹21,344 Cr). Highest AUM (₹53,926 Cr). Point 2 Established history (16+ yrs). Established history (18+ yrs). Oldest track record among peers (22 yrs). Established history (21+ yrs). Established history (20+ yrs). Established history (21+ yrs). Point 3 Top rated. Rating: 2★ (bottom quartile). Rating: 3★ (lower mid). Rating: 4★ (upper mid). Rating: 3★ (bottom quartile). Rating: 4★ (upper mid). Point 4 Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Point 5 1Y return: 6.52% (top quartile). 1Y return: 6.51% (upper mid). 1Y return: 6.50% (upper mid). 1Y return: 6.49% (lower mid). 1Y return: 6.49% (bottom quartile). 1Y return: 6.49% (bottom quartile). Point 6 1M return: 0.50% (upper mid). 1M return: 0.50% (upper mid). 1M return: 0.50% (lower mid). 1M return: 0.50% (bottom quartile). 1M return: 0.50% (top quartile). 1M return: 0.50% (bottom quartile). Point 7 Sharpe: 3.40 (upper mid). Sharpe: 3.62 (top quartile). Sharpe: 3.07 (bottom quartile). Sharpe: 3.10 (lower mid). Sharpe: 3.34 (upper mid). Sharpe: 3.07 (bottom quartile). Point 8 Information ratio: 0.00 (top quartile). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (bottom quartile). Information ratio: 0.00 (bottom quartile). Point 9 Yield to maturity (debt): 5.98% (lower mid). Yield to maturity (debt): 5.92% (bottom quartile). Yield to maturity (debt): 6.00% (upper mid). Yield to maturity (debt): 6.04% (upper mid). Yield to maturity (debt): 5.98% (bottom quartile). Yield to maturity (debt): 6.06% (top quartile). Point 10 Modified duration: 0.11 yrs (lower mid). Modified duration: 0.09 yrs (top quartile). Modified duration: 0.12 yrs (bottom quartile). Modified duration: 0.13 yrs (bottom quartile). Modified duration: 0.09 yrs (upper mid). Modified duration: 0.10 yrs (upper mid). Axis Liquid Fund
Edelweiss Liquid Fund
UTI Liquid Cash Plan
Tata Liquid Fund
DSP Liquidity Fund
Aditya Birla Sun Life Liquid Fund
*Above is list of best Liquid funds having AUM/Net Assets above 10,000 Crore and managing funds for 5 or more years. Sorted on Last 1 Calendar Year Return.
To provide a high level of liquidity with reasonable returns commensurating with low risk through a portfolio of money market and debt securities. However there can be no assurance that the investment objective of the scheme will be achieved. Research Highlights for Axis Liquid Fund Below is the key information for Axis Liquid Fund Returns up to 1 year are on The investment objective of the Scheme is to provide reasonable returns, commensurate with low risk while providing a high level of liquidity, through a portfolio of money market and debt securities. However, there can be no assurance that the investment objectives of the Scheme will be realized. Research Highlights for Edelweiss Liquid Fund Below is the key information for Edelweiss Liquid Fund Returns up to 1 year are on The investment objective of the scheme is to generate steady and reasonable income, with low risk and high level of liquidity from a portfolio of money market securities and high quality debt. Research Highlights for UTI Liquid Cash Plan Below is the key information for UTI Liquid Cash Plan Returns up to 1 year are on (Erstwhile TATA Money Market Fund ) To create a highly liquid portfolio of money market instruments so as to provide reasonable returns and high liquidity to the unitholders. Research Highlights for Tata Liquid Fund Below is the key information for Tata Liquid Fund Returns up to 1 year are on The Scheme seeks to generate reasonable returns commensurate with low risk from a portfolio constituted of money market and high quality debts Research Highlights for DSP Liquidity Fund Below is the key information for DSP Liquidity Fund Returns up to 1 year are on (Erstwhile Aditya Birla Sun Life Cash Plus Fund) An Open-ended liquid scheme with the objective to provide reasonable returns at a high level of safety and liquidity through judicious investments in high quality debt and money market instruments. Research Highlights for Aditya Birla Sun Life Liquid Fund Below is the key information for Aditya Birla Sun Life Liquid Fund Returns up to 1 year are on 1. Axis Liquid Fund
Axis Liquid Fund
Growth Launch Date 9 Oct 09 NAV (06 Jan 26) ₹2,995.35 ↑ 0.52 (0.02 %) Net Assets (Cr) ₹37,358 on 30 Nov 25 Category Debt - Liquid Fund AMC Axis Asset Management Company Limited Rating ☆☆☆☆ Risk Low Expense Ratio 0.23 Sharpe Ratio 3.4 Information Ratio 0 Alpha Ratio 0 Min Investment 500 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 5.98% Effective Maturity 1 Month 12 Days Modified Duration 1 Month 9 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 20 ₹10,000 31 Dec 21 ₹10,328 31 Dec 22 ₹10,832 31 Dec 23 ₹11,596 31 Dec 24 ₹12,452 31 Dec 25 ₹13,269 Returns for Axis Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Jan 26 Duration Returns 1 Month 0.5% 3 Month 1.5% 6 Month 2.9% 1 Year 6.5% 3 Year 7% 5 Year 5.8% 10 Year 15 Year Since launch 7% Historical performance (Yearly) on absolute basis
Year Returns 2024 6.6% 2023 7.4% 2022 7.1% 2021 4.9% 2020 3.3% 2019 4.3% 2018 6.6% 2017 7.5% 2016 6.7% 2015 7.6% Fund Manager information for Axis Liquid Fund
Name Since Tenure Devang Shah 5 Nov 12 13.08 Yr. Aditya Pagaria 13 Aug 16 9.31 Yr. Sachin Jain 3 Jul 23 2.42 Yr. Data below for Axis Liquid Fund as on 30 Nov 25
Asset Allocation
Asset Class Value Cash 99.75% Debt 0% Other 0.25% Debt Sector Allocation
Sector Value Cash Equivalent 74.66% Corporate 18.54% Government 6.55% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Clearing Corporation Of India Ltd
CBLO/Reverse Repo | -4% ₹1,651 Cr T-Bill
Sovereign Bonds | -3% ₹1,293 Cr 130,807,200
↑ 130,807,200 Titan Company Limited
Commercial Paper | -3% ₹1,273 Cr 25,500 Bank Of Baroda (18/12/2025) **
Net Current Assets | -3% ₹997 Cr 20,000 Punjab National Bank (18/12/2025) **
Net Current Assets | -3% ₹997 Cr 20,000 Small Industries Development Bk Of India
Commercial Paper | -3% ₹988 Cr 20,000
↑ 20,000 Export Import Bank Of India
Commercial Paper | -3% ₹988 Cr 20,000
↑ 20,000 Small Industries Development Bank Of India
Commercial Paper | -3% ₹986 Cr 20,000
↑ 20,000 Indian Bank (25/02/2026) **
Net Current Assets | -3% ₹986 Cr 20,000
↑ 20,000 India (Republic of)
- | -3% ₹942 Cr 95,000,000
↑ 95,000,000 2. Edelweiss Liquid Fund
Edelweiss Liquid Fund
Growth Launch Date 21 Sep 07 NAV (06 Jan 26) ₹3,440.53 ↑ 0.63 (0.02 %) Net Assets (Cr) ₹10,214 on 30 Nov 25 Category Debt - Liquid Fund AMC Edelweiss Asset Management Limited Rating ☆☆ Risk Low Expense Ratio 0.23 Sharpe Ratio 3.62 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 5.92% Effective Maturity 1 Month 2 Days Modified Duration 1 Month 2 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 20 ₹10,000 31 Dec 21 ₹10,323 31 Dec 22 ₹10,804 31 Dec 23 ₹11,544 31 Dec 24 ₹12,392 31 Dec 25 ₹13,202 Returns for Edelweiss Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Jan 26 Duration Returns 1 Month 0.5% 3 Month 1.5% 6 Month 2.9% 1 Year 6.5% 3 Year 6.9% 5 Year 5.7% 10 Year 15 Year Since launch 7% Historical performance (Yearly) on absolute basis
Year Returns 2024 6.5% 2023 7.3% 2022 6.9% 2021 4.7% 2020 3.2% 2019 4.1% 2018 6.6% 2017 7.4% 2016 6.6% 2015 6.8% Fund Manager information for Edelweiss Liquid Fund
Name Since Tenure Rahul Dedhia 11 Dec 17 7.98 Yr. Pranavi Kulkarni 23 Nov 21 4.02 Yr. Hetul Raval 22 Sep 25 0.19 Yr. Data below for Edelweiss Liquid Fund as on 30 Nov 25
Asset Allocation
Asset Class Value Cash 99.8% Other 0.2% Debt Sector Allocation
Sector Value Cash Equivalent 61.71% Corporate 24.1% Government 13.98% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Axis Bank Limited
Certificate of Deposit | -5% ₹543 Cr 55,000,000
↑ 55,000,000 India (Republic of)
- | -5% ₹500 Cr 50,000,000 Reliance Industries Limited
Commercial Paper | -5% ₹499 Cr 50,000,000 India (Republic of)
- | -3% ₹348 Cr 35,000,000 Bank Of Baroda
Certificate of Deposit | -3% ₹345 Cr 35,000,000
↑ 35,000,000 Punjab National Bank
Domestic Bonds | -3% ₹325 Cr 32,500,000
↑ 32,500,000 Small Industries Development Bank Of India
Debentures | -3% ₹300 Cr 30,000,000
↑ 30,000,000 Union Bank of India
Domestic Bonds | -3% ₹300 Cr 30,000,000
↑ 30,000,000 Punjab National Bank
Domestic Bonds | -3% ₹296 Cr 30,000,000
↑ 30,000,000 Axis Bank Limited
Certificate of Deposit | -2% ₹247 Cr 25,000,000 3. UTI Liquid Cash Plan
UTI Liquid Cash Plan
Growth Launch Date 11 Dec 03 NAV (06 Jan 26) ₹4,412.98 ↑ 0.70 (0.02 %) Net Assets (Cr) ₹24,570 on 30 Nov 25 Category Debt - Liquid Fund AMC UTI Asset Management Company Ltd Rating ☆☆☆ Risk Low Expense Ratio 0.25 Sharpe Ratio 3.07 Information Ratio 0 Alpha Ratio 0 Min Investment 500 Min SIP Investment 1,500 Exit Load NIL Yield to Maturity 6% Effective Maturity 1 Month 11 Days Modified Duration 1 Month 11 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 20 ₹10,000 31 Dec 21 ₹10,328 31 Dec 22 ₹10,827 31 Dec 23 ₹11,588 31 Dec 24 ₹12,438 31 Dec 25 ₹13,250 Returns for UTI Liquid Cash Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Jan 26 Duration Returns 1 Month 0.5% 3 Month 1.5% 6 Month 2.9% 1 Year 6.5% 3 Year 7% 5 Year 5.8% 10 Year 15 Year Since launch 6.8% Historical performance (Yearly) on absolute basis
Year Returns 2024 6.5% 2023 7.3% 2022 7% 2021 4.8% 2020 3.3% 2019 4.2% 2018 6.6% 2017 7.4% 2016 6.7% 2015 7.7% Fund Manager information for UTI Liquid Cash Plan
Name Since Tenure Amit Sharma 7 Jul 17 8.41 Yr. Data below for UTI Liquid Cash Plan as on 30 Nov 25
Asset Allocation
Asset Class Value Cash 99.73% Other 0.27% Debt Sector Allocation
Sector Value Cash Equivalent 58.58% Corporate 22.8% Government 18.35% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Net Current Assets
Net Current Assets | -5% -₹1,218 Cr India (Republic of)
- | -5% ₹1,136 Cr 11,395,050,000
↑ 11,395,050,000 HDFC Bank Ltd.
Debentures | -4% ₹987 Cr 10,000,000,000
↑ 10,000,000,000 India (Republic of)
- | -4% ₹885 Cr 8,870,870,000
↑ 8,870,870,000 India (Republic of)
- | -3% ₹746 Cr 7,500,000,000
↑ 7,500,000,000 HDFC Bank Ltd.
Debentures | -2% ₹573 Cr 5,750,000,000
↑ 5,750,000,000 Union Bank Of India
Certificate of Deposit | -2% ₹524 Cr 5,250,000,000 India (Republic of)
- | -2% ₹498 Cr 5,000,000,000
↑ 5,000,000,000 Small Industries Development Bank Of India
Commercial Paper | -2% ₹496 Cr 5,000,000,000 Tata Capital Housing Finance Limited
Commercial Paper | -2% ₹495 Cr 5,000,000,000 4. Tata Liquid Fund
Tata Liquid Fund
Growth Launch Date 1 Sep 04 NAV (06 Jan 26) ₹4,236.57 ↑ 0.64 (0.02 %) Net Assets (Cr) ₹22,790 on 15 Dec 25 Category Debt - Liquid Fund AMC Tata Asset Management Limited Rating ☆☆☆☆ Risk Low Expense Ratio 0.39 Sharpe Ratio 3.1 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 6.04% Effective Maturity 1 Month 15 Days Modified Duration 1 Month 15 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 20 ₹10,000 31 Dec 21 ₹10,323 31 Dec 22 ₹10,814 31 Dec 23 ₹11,568 31 Dec 24 ₹12,414 31 Dec 25 ₹13,224 Returns for Tata Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Jan 26 Duration Returns 1 Month 0.5% 3 Month 1.5% 6 Month 2.9% 1 Year 6.5% 3 Year 6.9% 5 Year 5.8% 10 Year 15 Year Since launch 7% Historical performance (Yearly) on absolute basis
Year Returns 2024 6.5% 2023 7.3% 2022 7% 2021 4.8% 2020 3.2% 2019 4.3% 2018 6.6% 2017 7.4% 2016 6.7% 2015 7.7% Fund Manager information for Tata Liquid Fund
Name Since Tenure Amit Somani 16 Oct 13 12.13 Yr. Harsh Dave 1 Aug 24 1.33 Yr. Data below for Tata Liquid Fund as on 15 Dec 25
Asset Allocation
Asset Class Value Cash 99.71% Other 0.29% Debt Sector Allocation
Sector Value Cash Equivalent 70.59% Corporate 17.29% Government 11.82% Credit Quality
Rating Value AA 0.66% AAA 99.34% Top Securities Holdings / Portfolio
Name Holding Value Quantity Small Industries Development Bank Of India
Commercial Paper | -7% ₹1,589 Cr 32,000
↓ -2,000 India (Republic of)
- | -5% ₹1,175 Cr 118,000,000
↓ -10,000,000 Punjab National Bank
Certificate of Deposit | -4% ₹990 Cr 20,000 India (Republic of)
- | -4% ₹835 Cr 84,000,000 Union Bank Of India
Certificate of Deposit | -3% ₹794 Cr 16,000 Indian Oil Corporation Limited
Commercial Paper | -3% ₹650 Cr 13,000 Bank of India Ltd.
Debentures | -3% ₹643 Cr 13,000 364 DTB 12022026
Sovereign Bonds | -3% ₹595 Cr 60,000,000
↑ 60,000,000 Aditya Birla Housing Finance Limited
Commercial Paper | -3% ₹595 Cr 12,000 ** - Bajaj Finance Ltd - Cp - 05/03/2026
Net Current Assets | -3% ₹592 Cr 12,000
↑ 12,000 5. DSP Liquidity Fund
DSP Liquidity Fund
Growth Launch Date 23 Nov 05 NAV (06 Jan 26) ₹3,840.45 ↑ 0.67 (0.02 %) Net Assets (Cr) ₹21,344 on 30 Nov 25 Category Debt - Liquid Fund AMC DSP BlackRock Invmt Managers Pvt. Ltd. Rating ☆☆☆ Risk Low Expense Ratio 0.21 Sharpe Ratio 3.34 Information Ratio 0 Alpha Ratio 0 Min Investment 1,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 5.98% Effective Maturity 1 Month 6 Days Modified Duration 1 Month 2 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 20 ₹10,000 31 Dec 21 ₹10,325 31 Dec 22 ₹10,824 31 Dec 23 ₹11,578 31 Dec 24 ₹12,432 31 Dec 25 ₹13,242 Returns for DSP Liquidity Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Jan 26 Duration Returns 1 Month 0.5% 3 Month 1.5% 6 Month 2.9% 1 Year 6.5% 3 Year 6.9% 5 Year 5.8% 10 Year 15 Year Since launch 6.9% Historical performance (Yearly) on absolute basis
Year Returns 2024 6.5% 2023 7.4% 2022 7% 2021 4.8% 2020 3.3% 2019 4.2% 2018 6.5% 2017 7.4% 2016 6.6% 2015 7.6% Fund Manager information for DSP Liquidity Fund
Name Since Tenure Karan Mundhra 31 May 21 4.51 Yr. Shalini Vasanta 1 Aug 24 1.33 Yr. Data below for DSP Liquidity Fund as on 30 Nov 25
Asset Allocation
Asset Class Value Cash 99.77% Other 0.23% Debt Sector Allocation
Sector Value Cash Equivalent 72.99% Corporate 22.26% Government 4.52% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.59% Govt Stock 2026
Sovereign Bonds | -11% ₹2,203 Cr 213,000,000
↑ 60,000,000 Treps / Reverse Repo Investments / Corporate Debt Repo
CBLO/Reverse Repo | -5% -₹1,000 Cr 00 Treps / Reverse Repo Investments / Corporate Debt Repo
CBLO/Reverse Repo | -4% -₹782 Cr 81,527,785
↑ 81,527,785 Small Industries Development Bk Of India
Commercial Paper | -3% ₹569 Cr 11,500 HDFC Bank Limited
Certificate of Deposit | -3% ₹544 Cr 11,000 Small Industries Development Bank of India
Commercial Paper | -2% ₹493 Cr 10,000
↑ 10,000 HDFC Bank Ltd.
Debentures | -2% ₹475 Cr 9,500
↑ 9,500 Union Bank Of India
Certificate of Deposit | -2% ₹469 Cr 9,500
↑ 9,500 Bank Of Baroda
Certificate of Deposit | -2% ₹444 Cr 9,000
↑ 9,000 Bank Of Baroda
Certificate of Deposit | -2% ₹444 Cr 9,000
↑ 9,000 6. Aditya Birla Sun Life Liquid Fund
Aditya Birla Sun Life Liquid Fund
Growth Launch Date 30 Mar 04 NAV (06 Jan 26) ₹433.433 ↑ 0.08 (0.02 %) Net Assets (Cr) ₹53,926 on 15 Dec 25 Category Debt - Liquid Fund AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆ Risk Low Expense Ratio 0.34 Sharpe Ratio 3.07 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 6.06% Effective Maturity 1 Month 6 Days Modified Duration 1 Month 6 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 20 ₹10,000 31 Dec 21 ₹10,326 31 Dec 22 ₹10,824 31 Dec 23 ₹11,587 31 Dec 24 ₹12,439 31 Dec 25 ₹13,249 Returns for Aditya Birla Sun Life Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Jan 26 Duration Returns 1 Month 0.5% 3 Month 1.5% 6 Month 2.9% 1 Year 6.5% 3 Year 7% 5 Year 5.8% 10 Year 15 Year Since launch 7% Historical performance (Yearly) on absolute basis
Year Returns 2024 6.5% 2023 7.3% 2022 7.1% 2021 4.8% 2020 3.3% 2019 4.3% 2018 6.7% 2017 7.4% 2016 6.7% 2015 7.7% Fund Manager information for Aditya Birla Sun Life Liquid Fund
Name Since Tenure Sunaina Cunha 15 Jul 11 14.39 Yr. Kaustubh Gupta 15 Jul 11 14.39 Yr. Sanjay Pawar 1 Jul 22 3.42 Yr. Data below for Aditya Birla Sun Life Liquid Fund as on 15 Dec 25
Asset Allocation
Asset Class Value Cash 99.42% Debt 0.32% Other 0.26% Debt Sector Allocation
Sector Value Cash Equivalent 65.96% Corporate 25.29% Government 8.5% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Net Receivables / (Payables)
Net Current Assets | -9% -₹4,770 Cr Rbl Bank Limited
Certificate of Deposit | -4% ₹2,400 Cr 48,000 364 DTB 27022026
Sovereign Bonds | -3% ₹1,583 Cr 160,000,000
↑ 160,000,000 182 Days Tbill Red 28-05-2026
Sovereign Bonds | -2% ₹1,024 Cr 102,500,000
↑ 52,500,000 Yes Bank Limited
Certificate of Deposit | -2% ₹1,000 Cr 20,000 Treasury Bill
Sovereign Bonds | -2% ₹999 Cr 100,000,000
↑ 100,000,000 364 DTB 12022026
Sovereign Bonds | -2% ₹992 Cr 100,000,000
↑ 100,000,000 T-Bill
Sovereign Bonds | -2% ₹991 Cr 100,000,000 Yes Bank Limited (05/03/2026) ** #
Net Current Assets | -2% ₹987 Cr 20,000
↑ 20,000 HDFC Bank Limited
Certificate of Deposit | -2% ₹940 Cr 19,000
How to evaluate Liquid Mutual Funds?
When looking for a liquid mutual fund, the past return should not be the only factor for consideration. Other factors like fund size, track record, credit quality of underlying securities should also be kept in mind.
1. Investment Plans
Liquid funds come with different plans like a daily dividend plan, weekly dividend plan, monthly dividend plan and growth plans. In the growth option, profits made by the scheme are invested back into it. This results in the NAV (Net Asset Value) of the scheme rising over time. In the dividend option, the profits made by the fund are not re-invested. Dividends are distributed to the investor from time to time. Investors can choose their plan as per their convenience and liquidity needs.
2. Expense Ratio
Mutual funds charge a fee to manage your funds called an expense ratio. As per SEBI norms, the upper limit of expense ratio is 2.25%. In case of liquid funds, they maintain a lower expense ratio to provide relatively higher returns over a short period of time.
3. Investment Horizon
Plan your investment horizon. Liquid funds are exclusively meant to invest surplus cash over a very short period of time that is for 91 days. So, if you have an idle cash, you can invest here for a short period and earn better returns than bank Savings Account. In case you have a longer investment horizon of up to 1 year, then you may consider investing in short duration funds to get relatively higher returns.
Features of Liquid Mutual Funds
1. Exit Load Of Liquid Mutual Funds
Considering the fact that liquid mutual funds are short-term investments with a low maturity period, the majority of the funds under this category do not levy any exit load on redemption. Also, if there exists any exit load, it is very nominal and usually not more than a week. Liquid funds generally do not have an exit load given they are very short investment products.
2. Volatility Of Liquid Fund Investment
Generally, the Volatility of liquid funds is low as the investment lasts for a few days to weeks. So, the risk of loss in investment is quite less. However, it is suggested to make a liquid fund investment considering the market condition to avoid the opportunity of loss.
3. Lock-in Period Of Best Liquid Funds
Given that liquid mutual funds are very short-term investment options, liquid funds do not have any lock-in period. Liquid Funds can be invested for a time period as short as one day going upto a couple of weeks.
4. Liquid Fund Returns
Liquid funds are one of the best short-term investments during a high inflation period. In the high inflation period, the interest rate on the liquid fund is high. Thus, helping liquid mutual funds to earn good returns. The liquid fund returns are usually higher than that of other traditional investments like bank fixed deposits or savings accounts. However, it is suggested to invest in best liquid funds choosing a right option (growth, dividend payout, dividend re-investment) suiting your needs.
5. Liquid Funds Taxation
Generally, liquid fund returns receive in the form of dividends are not taxed in the hands of investors. However, a Dividend Distribution Tax (DDT) of approximately 28% is deducted by the mutual fund company from the dividends. Moreover, for the investors who have opted for growth option, a short-term capital gain tax is deducted as per the individual’s tax slab. This tax deduction is same as that of a savings account.
How to Invest in Liquid Funds Online?
Open Free Investment Account for Lifetime at Fincash.com
Complete your Registration and KYC Process
Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!
Due to the lack of awareness about liquid funds, people don’t invest in them and instead keep huge sums in a savings account. But, it’s never too late to begin something good. So, invest in best liquid funds today!
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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