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6 Best Liquid Mutual Funds 2025

Updated on August 8, 2025 , 145541 views

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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6 Best Liquid Funds India FY 25 - 26

FundNAVNet Assets (Cr)1 MO (%)3 MO (%)6 MO (%)1 YR (%)2024 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Axis Liquid Fund Growth ₹2,926.02
↑ 0.45
₹33,5290.51.53.47.17.45.96%1M 27D2M 1D
LIC MF Liquid Fund Growth ₹4,750.08
↑ 0.72
₹10,3770.51.53.36.97.46.03%1M 19D1M 19D
DSP Liquidity Fund Growth ₹3,751.7
↑ 0.57
₹16,9260.51.53.377.45.95%1M 28D2M 1D
Invesco India Liquid Fund Growth ₹3,611.92
↑ 0.54
₹12,3200.51.53.377.46.19%1M 22D1M 22D
ICICI Prudential Liquid Fund Growth ₹389.006
↑ 0.06
₹49,5170.51.53.377.45.95%1M 25D1M 30D
Aditya Birla Sun Life Liquid Fund Growth ₹423.421
↑ 0.06
₹54,8380.51.53.377.36.39%1M 17D1M 17D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 10 Aug 25

Research Highlights & Commentary of 6 Funds showcased

CommentaryAxis Liquid FundLIC MF Liquid FundDSP Liquidity FundInvesco India Liquid FundICICI Prudential Liquid FundAditya Birla Sun Life Liquid Fund
Point 1Upper mid AUM (₹33,529 Cr).Bottom quartile AUM (₹10,377 Cr).Lower mid AUM (₹16,926 Cr).Bottom quartile AUM (₹12,320 Cr).Upper mid AUM (₹49,517 Cr).Highest AUM (₹54,838 Cr).
Point 2Established history (15+ yrs).Oldest track record among peers (23 yrs).Established history (19+ yrs).Established history (18+ yrs).Established history (19+ yrs).Established history (21+ yrs).
Point 3Top rated.Rating: 3★ (bottom quartile).Rating: 3★ (bottom quartile).Rating: 4★ (upper mid).Rating: 4★ (upper mid).Rating: 4★ (lower mid).
Point 4Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.
Point 51Y return: 7.05% (top quartile).1Y return: 6.94% (bottom quartile).1Y return: 7.03% (upper mid).1Y return: 7.03% (upper mid).1Y return: 6.98% (bottom quartile).1Y return: 7.00% (lower mid).
Point 61M return: 0.46% (upper mid).1M return: 0.45% (bottom quartile).1M return: 0.46% (top quartile).1M return: 0.46% (upper mid).1M return: 0.45% (bottom quartile).1M return: 0.45% (lower mid).
Point 7Sharpe: 3.87 (upper mid).Sharpe: 3.54 (bottom quartile).Sharpe: 4.37 (top quartile).Sharpe: 3.96 (upper mid).Sharpe: 3.50 (bottom quartile).Sharpe: 3.56 (lower mid).
Point 8Information 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: -1.00 (bottom quartile).Information ratio: 0.00 (bottom quartile).
Point 9Yield to maturity (debt): 5.96% (lower mid).Yield to maturity (debt): 6.03% (upper mid).Yield to maturity (debt): 5.95% (bottom quartile).Yield to maturity (debt): 6.19% (upper mid).Yield to maturity (debt): 5.95% (bottom quartile).Yield to maturity (debt): 6.39% (top quartile).
Point 10Modified duration: 0.16 yrs (bottom quartile).Modified duration: 0.14 yrs (upper mid).Modified duration: 0.16 yrs (bottom quartile).Modified duration: 0.15 yrs (upper mid).Modified duration: 0.15 yrs (lower mid).Modified duration: 0.13 yrs (top quartile).

Axis Liquid Fund

  • Upper mid AUM (₹33,529 Cr).
  • Established history (15+ yrs).
  • Top rated.
  • Risk profile: Low.
  • 1Y return: 7.05% (top quartile).
  • 1M return: 0.46% (upper mid).
  • Sharpe: 3.87 (upper mid).
  • Information ratio: 0.00 (top quartile).
  • Yield to maturity (debt): 5.96% (lower mid).
  • Modified duration: 0.16 yrs (bottom quartile).

LIC MF Liquid Fund

  • Bottom quartile AUM (₹10,377 Cr).
  • Oldest track record among peers (23 yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 6.94% (bottom quartile).
  • 1M return: 0.45% (bottom quartile).
  • Sharpe: 3.54 (bottom quartile).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 6.03% (upper mid).
  • Modified duration: 0.14 yrs (upper mid).

DSP Liquidity Fund

  • Lower mid AUM (₹16,926 Cr).
  • Established history (19+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 7.03% (upper mid).
  • 1M return: 0.46% (top quartile).
  • Sharpe: 4.37 (top quartile).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 5.95% (bottom quartile).
  • Modified duration: 0.16 yrs (bottom quartile).

Invesco India Liquid Fund

  • Bottom quartile AUM (₹12,320 Cr).
  • Established history (18+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Low.
  • 1Y return: 7.03% (upper mid).
  • 1M return: 0.46% (upper mid).
  • Sharpe: 3.96 (upper mid).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 6.19% (upper mid).
  • Modified duration: 0.15 yrs (upper mid).

ICICI Prudential Liquid Fund

  • Upper mid AUM (₹49,517 Cr).
  • Established history (19+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Low.
  • 1Y return: 6.98% (bottom quartile).
  • 1M return: 0.45% (bottom quartile).
  • Sharpe: 3.50 (bottom quartile).
  • Information ratio: -1.00 (bottom quartile).
  • Yield to maturity (debt): 5.95% (bottom quartile).
  • Modified duration: 0.15 yrs (lower mid).

Aditya Birla Sun Life Liquid Fund

  • Highest AUM (₹54,838 Cr).
  • Established history (21+ yrs).
  • Rating: 4★ (lower mid).
  • Risk profile: Low.
  • 1Y return: 7.00% (lower mid).
  • 1M return: 0.45% (lower mid).
  • Sharpe: 3.56 (lower mid).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.39% (top quartile).
  • Modified duration: 0.13 yrs (top quartile).
*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.

1. Axis Liquid Fund

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

  • Upper mid AUM (₹33,529 Cr).
  • Established history (15+ yrs).
  • Top rated.
  • Risk profile: Low.
  • 1Y return: 7.05% (top quartile).
  • 1M return: 0.46% (upper mid).
  • Sharpe: 3.87 (upper mid).
  • Information ratio: 0.00 (top quartile).
  • Yield to maturity (debt): 5.96% (lower mid).
  • Modified duration: 0.16 yrs (bottom quartile).
  • Average maturity: 0.17 yrs (bottom quartile).
  • Exit load: NIL.
  • Top bond sector: Cash Equivalent.
  • Conservative stance with elevated cash (~100%).
  • High-quality debt (AAA/AA ~100%).
  • Largest holding Canara Bank (~4.9%).

Below is the key information for Axis Liquid Fund

Axis Liquid Fund
Growth
Launch Date 9 Oct 09
NAV (10 Aug 25) ₹2,926.02 ↑ 0.45   (0.02 %)
Net Assets (Cr) ₹33,529 on 30 Jun 25
Category Debt - Liquid Fund
AMC Axis Asset Management Company Limited
Rating
Risk Low
Expense Ratio 0.23
Sharpe Ratio 3.87
Information Ratio 0
Alpha Ratio 0
Min Investment 500
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 5.96%
Effective Maturity 2 Months 1 Day
Modified Duration 1 Month 27 Days

Growth of 10,000 investment over the years.

DateValue
31 Jul 20₹10,000
31 Jul 21₹10,322
31 Jul 22₹10,705
31 Jul 23₹11,419
31 Jul 24₹12,258
31 Jul 25₹13,127

Axis Liquid Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹197,169.
Net Profit of ₹17,169
Invest Now

Returns for Axis Liquid Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 10 Aug 25

DurationReturns
1 Month 0.5%
3 Month 1.5%
6 Month 3.4%
1 Year 7.1%
3 Year 7%
5 Year 5.6%
10 Year
15 Year
Since launch 7%
Historical performance (Yearly) on absolute basis
YearReturns
2024 7.4%
2023 7.1%
2022 4.9%
2021 3.3%
2020 4.3%
2019 6.6%
2018 7.5%
2017 6.7%
2016 7.6%
2015 8.4%
Fund Manager information for Axis Liquid Fund
NameSinceTenure
Devang Shah5 Nov 1212.74 Yr.
Aditya Pagaria13 Aug 168.97 Yr.
Sachin Jain3 Jul 232.08 Yr.

Data below for Axis Liquid Fund as on 30 Jun 25

Asset Allocation
Asset ClassValue
Cash99.78%
Other0.22%
Debt Sector Allocation
SectorValue
Cash Equivalent80.13%
Corporate10.24%
Government9.4%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Canara Bank
Domestic Bonds | -
5%₹1,988 Cr40,000
Indian Oil Corp Ltd.
Commercial Paper | -
4%₹1,786 Cr36,000
HDFC Bank Limited
Certificate of Deposit | -
4%₹1,592 Cr32,000
India (Republic of)
- | -
4%₹1,482 Cr150,000,000
↑ 150,000,000
Clearing Corporation Of India Ltd
CBLO/Reverse Repo | -
4%₹1,478 Cr
Punjab National Bank
Domestic Bonds | -
3%₹1,337 Cr27,000
India (Republic of)
- | -
3%₹1,269 Cr128,124,300
182 DTB 17072025
Sovereign Bonds | -
3%₹1,250 Cr125,000,000
Bharti Airtel Ltd.
Commercial Paper | -
2%₹1,017 Cr20,500
National Bank for Agriculture and Rural Development
Commercial Paper | -
2%₹1,015 Cr20,500

2. LIC MF Liquid Fund

An open ended scheme which seeks to generate reasonable returns with low risk and high liquidity through a judicious mix of investment in money market instruments and quality debt instruments. However, there is no assurance that the investment objective of the Scheme will be realised.

Research Highlights for LIC MF Liquid Fund

  • Bottom quartile AUM (₹10,377 Cr).
  • Oldest track record among peers (23 yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 6.94% (bottom quartile).
  • 1M return: 0.45% (bottom quartile).
  • Sharpe: 3.54 (bottom quartile).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 6.03% (upper mid).
  • Modified duration: 0.14 yrs (upper mid).
  • Average maturity: 0.14 yrs (upper mid).
  • Exit load: NIL.
  • Top sector: Consumer Defensive.
  • Top bond sector: Cash Equivalent.
  • Conservative stance with elevated cash (~100%).
  • High-quality debt (AAA/AA ~100%).
  • Largest holding Reverse Repo (~8.4%).

Below is the key information for LIC MF Liquid Fund

LIC MF Liquid Fund
Growth
Launch Date 11 Mar 02
NAV (10 Aug 25) ₹4,750.08 ↑ 0.72   (0.02 %)
Net Assets (Cr) ₹10,377 on 30 Jun 25
Category Debt - Liquid Fund
AMC LIC Mutual Fund Asset Mgmt Co Ltd
Rating
Risk Low
Expense Ratio 0.24
Sharpe Ratio 3.54
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 6.03%
Effective Maturity 1 Month 19 Days
Modified Duration 1 Month 19 Days

Growth of 10,000 investment over the years.

DateValue
31 Jul 20₹10,000
31 Jul 21₹10,319
31 Jul 22₹10,691
31 Jul 23₹11,389
31 Jul 24₹12,225
31 Jul 25₹13,077

LIC MF Liquid Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹197,169.
Net Profit of ₹17,169
Invest Now

Returns for LIC MF Liquid Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 10 Aug 25

DurationReturns
1 Month 0.5%
3 Month 1.5%
6 Month 3.3%
1 Year 6.9%
3 Year 6.9%
5 Year 5.5%
10 Year
15 Year
Since launch 6.9%
Historical performance (Yearly) on absolute basis
YearReturns
2024 7.4%
2023 7%
2022 4.7%
2021 3.3%
2020 4.3%
2019 6.5%
2018 7.3%
2017 6.6%
2016 7.6%
2015 8.4%
Fund Manager information for LIC MF Liquid Fund
NameSinceTenure
Rahul Singh5 Oct 159.83 Yr.

Data below for LIC MF Liquid Fund as on 30 Jun 25

Asset Allocation
Asset ClassValue
Cash99.76%
Other0.24%
Debt Sector Allocation
SectorValue
Cash Equivalent76.63%
Corporate13.52%
Government9.61%
Credit Quality
RatingValue
AA0.83%
AAA99.17%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Reverse Repo
CBLO/Reverse Repo | -
8%₹1,003 Cr
India (Republic of)
- | -
5%₹549 Cr55,000,000
Treps
CBLO/Reverse Repo | -
4%₹487 Cr
India (Republic of)
- | -
4%₹449 Cr45,000,000
Can Fin Homes Ltd.
Commercial Paper | -
3%₹400 Cr8,000
↑ 8,000
Indian Oil Corporation Limited
Commercial Paper | -
3%₹397 Cr8,000
Motilal Oswal Financial Services Ltd
Commercial Paper | -
3%₹396 Cr8,000
HDFC Bank Limited
Certificate of Deposit | -
3%₹396 Cr8,000
Chennai Petroleum Corporation Ltd
Commercial Paper | -
2%₹298 Cr6,000
Birla Group Holdings Private Limited
Commercial Paper | -
2%₹297 Cr6,000

3. DSP Liquidity Fund

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

  • Lower mid AUM (₹16,926 Cr).
  • Established history (19+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 7.03% (upper mid).
  • 1M return: 0.46% (top quartile).
  • Sharpe: 4.37 (top quartile).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 5.95% (bottom quartile).
  • Modified duration: 0.16 yrs (bottom quartile).
  • Average maturity: 0.17 yrs (bottom quartile).
  • Exit load: NIL.
  • Top sector: Communication Services.
  • Top bond sector: Cash Equivalent.
  • Conservative stance with elevated cash (~100%).
  • High-quality debt (AAA/AA ~100%).
  • Largest holding India (Republic of) (~3.9%).

Below is the key information for DSP Liquidity Fund

DSP Liquidity Fund
Growth
Launch Date 23 Nov 05
NAV (10 Aug 25) ₹3,751.7 ↑ 0.57   (0.02 %)
Net Assets (Cr) ₹16,926 on 30 Jun 25
Category Debt - Liquid Fund
AMC DSP BlackRock Invmt Managers Pvt. Ltd.
Rating
Risk Low
Expense Ratio 0.24
Sharpe Ratio 4.37
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 5.95%
Effective Maturity 2 Months 1 Day
Modified Duration 1 Month 28 Days

Growth of 10,000 investment over the years.

DateValue
31 Jul 20₹10,000
31 Jul 21₹10,319
31 Jul 22₹10,699
31 Jul 23₹11,401
31 Jul 24₹12,234
31 Jul 25₹13,099

DSP Liquidity Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹197,169.
Net Profit of ₹17,169
Invest Now

Returns for DSP Liquidity Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 10 Aug 25

DurationReturns
1 Month 0.5%
3 Month 1.5%
6 Month 3.3%
1 Year 7%
3 Year 7%
5 Year 5.6%
10 Year
15 Year
Since launch 6.9%
Historical performance (Yearly) on absolute basis
YearReturns
2024 7.4%
2023 7%
2022 4.8%
2021 3.3%
2020 4.2%
2019 6.5%
2018 7.4%
2017 6.6%
2016 7.6%
2015 8.3%
Fund Manager information for DSP Liquidity Fund
NameSinceTenure
Karan Mundhra31 May 214.17 Yr.
Shalini Vasanta1 Aug 241 Yr.

Data below for DSP Liquidity Fund as on 30 Jun 25

Asset Allocation
Asset ClassValue
Cash99.78%
Other0.22%
Debt Sector Allocation
SectorValue
Cash Equivalent83.13%
Corporate8.68%
Government7.97%
Credit Quality
RatingValue
AA0.37%
AAA99.63%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
India (Republic of)
- | -
4%₹793 Cr80,000,000
Bank of Baroda
Debentures | -
4%₹769 Cr15,500
↓ -500
Punjab National Bank
Domestic Bonds | -
3%₹671 Cr13,500
National Bank for Agriculture and Rural Development
Commercial Paper | -
3%₹570 Cr11,500
↓ -500
Small Industries Development Bank of India
Commercial Paper | -
2%₹496 Cr10,000
Reliance Retail Ventures Limited
Commercial Paper | -
2%₹496 Cr10,000
HDFC Bank Ltd.
Debentures | -
2%₹496 Cr10,000
India (Republic of)
- | -
2%₹471 Cr47,500,000
Punjab National Bank
Domestic Bonds | -
2%₹470 Cr9,500
↓ -500
Canara Bank
Domestic Bonds | -
2%₹470 Cr9,500

4. Invesco India Liquid Fund

To provide reasonable returns, commensurate with low risk while providing a high level of liquidity, through a portfolio of money market and debt securities.

Research Highlights for Invesco India Liquid Fund

  • Bottom quartile AUM (₹12,320 Cr).
  • Established history (18+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Low.
  • 1Y return: 7.03% (upper mid).
  • 1M return: 0.46% (upper mid).
  • Sharpe: 3.96 (upper mid).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 6.19% (upper mid).
  • Modified duration: 0.15 yrs (upper mid).
  • Average maturity: 0.15 yrs (upper mid).
  • Exit load: NIL.
  • Top bond sector: Cash Equivalent.
  • Conservative stance with elevated cash (~100%).
  • High-quality debt (AAA/AA ~100%).
  • Largest holding Triparty Repo (~4.1%).

Below is the key information for Invesco India Liquid Fund

Invesco India Liquid Fund
Growth
Launch Date 17 Nov 06
NAV (10 Aug 25) ₹3,611.92 ↑ 0.54   (0.01 %)
Net Assets (Cr) ₹12,320 on 30 Jun 25
Category Debt - Liquid Fund
AMC Invesco Asset Management (India) Private Ltd
Rating
Risk Low
Expense Ratio 0.22
Sharpe Ratio 3.96
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 6.19%
Effective Maturity 1 Month 22 Days
Modified Duration 1 Month 22 Days

Growth of 10,000 investment over the years.

DateValue
31 Jul 20₹10,000
31 Jul 21₹10,319
31 Jul 22₹10,698
31 Jul 23₹11,403
31 Jul 24₹12,238
31 Jul 25₹13,102

Invesco India Liquid Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹197,169.
Net Profit of ₹17,169
Invest Now

Returns for Invesco India Liquid Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 10 Aug 25

DurationReturns
1 Month 0.5%
3 Month 1.5%
6 Month 3.3%
1 Year 7%
3 Year 7%
5 Year 5.6%
10 Year
15 Year
Since launch 7.1%
Historical performance (Yearly) on absolute basis
YearReturns
2024 7.4%
2023 7%
2022 4.8%
2021 3.3%
2020 4.1%
2019 6.5%
2018 7.4%
2017 6.7%
2016 7.6%
2015 8.4%
Fund Manager information for Invesco India Liquid Fund
NameSinceTenure
Krishna Cheemalapati25 Apr 1114.28 Yr.

Data below for Invesco India Liquid Fund as on 30 Jun 25

Asset Allocation
Asset ClassValue
Cash99.76%
Other0.24%
Debt Sector Allocation
SectorValue
Cash Equivalent84.38%
Government7.87%
Corporate7.52%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Triparty Repo
CBLO/Reverse Repo | -
4%₹584 Cr
182 DTB 24072025
Sovereign Bonds | -
4%₹549 Cr55,000,000
India (Republic of)
- | -
3%₹398 Cr40,000,000
Canara Bank
Certificate of Deposit | -
3%₹398 Cr40,000,000
Small Industries Development Bank Of India
Commercial Paper | -
3%₹398 Cr40,000,000
182 Days Tbill
Sovereign Bonds | -
2%₹324 Cr32,500,000
Reliance Retail Ventures Limited
Commercial Paper | -
2%₹299 Cr30,000,000
National Bank for Agriculture and Rural Development
Commercial Paper | -
2%₹298 Cr30,000,000
Birla Group Holdings Private Limited
Commercial Paper | -
2%₹297 Cr30,000,000
India (Republic of)
- | -
2%₹297 Cr30,000,000
↑ 30,000,000

5. ICICI Prudential Liquid Fund

(Erstwhile ICICI Prudential Liquid Plan)

To provide reasonable returns, commensurate with low risk while providing a high level of liquidity, through investments made primarily in money market and debt securities.

Research Highlights for ICICI Prudential Liquid Fund

  • Upper mid AUM (₹49,517 Cr).
  • Established history (19+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Low.
  • 1Y return: 6.98% (bottom quartile).
  • 1M return: 0.45% (bottom quartile).
  • Sharpe: 3.50 (bottom quartile).
  • Information ratio: -1.00 (bottom quartile).
  • Yield to maturity (debt): 5.95% (bottom quartile).
  • Modified duration: 0.15 yrs (lower mid).
  • Average maturity: 0.17 yrs (lower mid).
  • Exit load: NIL.
  • Top bond sector: Cash Equivalent.
  • Conservative stance with elevated cash (~100%).
  • High-quality debt (AAA/AA ~100%).
  • Largest holding 91 Days Tbill Red 21-08-2025 (~5.7%).

Below is the key information for ICICI Prudential Liquid Fund

ICICI Prudential Liquid Fund
Growth
Launch Date 17 Nov 05
NAV (10 Aug 25) ₹389.006 ↑ 0.06   (0.02 %)
Net Assets (Cr) ₹49,517 on 30 Jun 25
Category Debt - Liquid Fund
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Low
Expense Ratio 0.29
Sharpe Ratio 3.5
Information Ratio -1
Alpha Ratio -0.1
Min Investment 500
Min SIP Investment 99
Exit Load NIL
Yield to Maturity 5.95%
Effective Maturity 1 Month 30 Days
Modified Duration 1 Month 25 Days

Growth of 10,000 investment over the years.

DateValue
31 Jul 20₹10,000
31 Jul 21₹10,318
31 Jul 22₹10,692
31 Jul 23₹11,394
31 Jul 24₹12,227
31 Jul 25₹13,086

ICICI Prudential Liquid Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹197,169.
Net Profit of ₹17,169
Invest Now

Returns for ICICI Prudential Liquid Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 10 Aug 25

DurationReturns
1 Month 0.5%
3 Month 1.5%
6 Month 3.3%
1 Year 7%
3 Year 7%
5 Year 5.5%
10 Year
15 Year
Since launch 7.1%
Historical performance (Yearly) on absolute basis
YearReturns
2024 7.4%
2023 7%
2022 4.8%
2021 3.2%
2020 4.3%
2019 6.6%
2018 7.4%
2017 6.6%
2016 7.7%
2015 8.3%
Fund Manager information for ICICI Prudential Liquid Fund
NameSinceTenure
Nikhil Kabra1 Dec 231.67 Yr.
Darshil Dedhia12 Jun 232.14 Yr.

Data below for ICICI Prudential Liquid Fund as on 30 Jun 25

Asset Allocation
Asset ClassValue
Cash99.76%
Other0.24%
Debt Sector Allocation
SectorValue
Cash Equivalent84.77%
Government7.68%
Corporate7.31%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
91 Days Tbill Red 21-08-2025
Sovereign Bonds | -
6%₹3,183 Cr320,000,000
Bank of India Ltd.
Debentures | -
3%₹1,490 Cr30,000
Reverse Repo ( 7/16/2025 )
CBLO/Reverse Repo | -
2%₹1,348 Cr
Reliance Retail Ventures Limited
Commercial Paper | -
2%₹1,244 Cr25,000
Reliance Retail Ventures Limited
Commercial Paper | -
2%₹1,243 Cr25,000
Small Industries Development Bank Of India
Commercial Paper | -
2%₹1,242 Cr25,000
India (Republic of)
- | -
2%₹1,241 Cr125,000,000
Treps
CBLO/Reverse Repo | -
2%₹1,063 Cr
Punjab National Bank
Certificate of Deposit | -
2%₹996 Cr20,000
Indian Bank
Certificate of Deposit | -
2%₹995 Cr20,000

6. Aditya Birla Sun Life Liquid Fund

(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

  • Highest AUM (₹54,838 Cr).
  • Established history (21+ yrs).
  • Rating: 4★ (lower mid).
  • Risk profile: Low.
  • 1Y return: 7.00% (lower mid).
  • 1M return: 0.45% (lower mid).
  • Sharpe: 3.56 (lower mid).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.39% (top quartile).
  • Modified duration: 0.13 yrs (top quartile).
  • Average maturity: 0.13 yrs (top quartile).
  • Exit load: NIL.
  • Top sector: Financial Services.
  • Higher exposure to Cash Equivalent (bond sector) vs peer median.
  • Conservative stance with elevated cash (~100%).
  • High-quality debt (AAA/AA ~100%).
  • Largest holding 91 Days Tbill (Md 28/08/2025) (~3.4%).

Below is the key information for Aditya Birla Sun Life Liquid Fund

Aditya Birla Sun Life Liquid Fund
Growth
Launch Date 30 Mar 04
NAV (10 Aug 25) ₹423.421 ↑ 0.06   (0.02 %)
Net Assets (Cr) ₹54,838 on 15 Jul 25
Category Debt - Liquid Fund
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Low
Expense Ratio 0.34
Sharpe Ratio 3.56
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 6.39%
Effective Maturity 1 Month 17 Days
Modified Duration 1 Month 17 Days

Growth of 10,000 investment over the years.

DateValue
31 Jul 20₹10,000
31 Jul 21₹10,319
31 Jul 22₹10,699
31 Jul 23₹11,411
31 Jul 24₹12,246
31 Jul 25₹13,108

Aditya Birla Sun Life Liquid Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹197,169.
Net Profit of ₹17,169
Invest Now

Returns for Aditya Birla Sun Life Liquid Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 10 Aug 25

DurationReturns
1 Month 0.5%
3 Month 1.5%
6 Month 3.3%
1 Year 7%
3 Year 7%
5 Year 5.6%
10 Year
15 Year
Since launch 7%
Historical performance (Yearly) on absolute basis
YearReturns
2024 7.3%
2023 7.1%
2022 4.8%
2021 3.3%
2020 4.3%
2019 6.7%
2018 7.4%
2017 6.7%
2016 7.7%
2015 8.4%
Fund Manager information for Aditya Birla Sun Life Liquid Fund
NameSinceTenure
Sunaina Cunha15 Jul 1114.06 Yr.
Kaustubh Gupta15 Jul 1114.06 Yr.
Sanjay Pawar1 Jul 223.09 Yr.

Data below for Aditya Birla Sun Life Liquid Fund as on 15 Jul 25

Asset Allocation
Asset ClassValue
Cash99.75%
Other0.25%
Debt Sector Allocation
SectorValue
Cash Equivalent89.15%
Corporate7.43%
Government3.17%
Credit Quality
RatingValue
AA0.2%
AAA99.8%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
91 Days Tbill (Md 28/08/2025)
Sovereign Bonds | -
3%₹1,848 Cr186,000,000
8.2% Govt Stock 2025
Sovereign Bonds | -
3%₹1,746 Cr173,701,000
↑ 173,701,000
Canara Bank
Domestic Bonds | -
2%₹1,188 Cr24,000
Bank Of Baroda
Certificate of Deposit | -
2%₹996 Cr20,000
India (Republic of)
- | -
2%₹988 Cr100,000,000
↑ 100,000,000
Punjab National Bank
Domestic Bonds | -
2%₹969 Cr19,500
Bharti Airtel Ltd.
Commercial Paper | -
2%₹967 Cr19,500
182 Days Tbill
Sovereign Bonds | -
2%₹958 Cr96,500,000
↑ 25,000,000
Bank Of Baroda
Certificate of Deposit | -
1%₹748 Cr15,000
Hindustan Zinc Ltd.
Commercial Paper | -
1%₹744 Cr15,000

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

Features-of-best-liquid-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?

  1. Open Free Investment Account for Lifetime at Fincash.com

  2. Complete your Registration and KYC Process

  3. Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!

    Get Started

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!


Author By Rohini Hiremath

Rohini Hiremath works as a Content Head at Fincash.com. Her passion is to deliver financial knowledge to the masses in simple language. She has a strong background in start-ups and diverse content. Rohini is also an SEO expert, coach and motivating team head!

You can connect with her at rohini.hiremath@fincash.com


Disclaimer:
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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Knhendre, posted on 15 Sep 22 5:05 PM

Good knowledgeable information, you should have to give an example

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