+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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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 ₹2,936.21
↑ 0.38 ₹36,757 0.5 1.5 3.3 7 7.4 5.85% 1M 12D 1M 15D LIC MF Liquid Fund Growth ₹4,766.29
↑ 0.62 ₹11,199 0.5 1.4 3.3 6.8 7.4 5.85% 1M 12D 1M 12D DSP Liquidity Fund Growth ₹3,764.72
↑ 0.48 ₹22,245 0.5 1.5 3.3 6.9 7.4 5.83% 1M 13D 1M 17D Invesco India Liquid Fund Growth ₹3,624.43
↑ 0.47 ₹14,240 0.5 1.5 3.3 6.9 7.4 5.78% 1M 9D 1M 9D ICICI Prudential Liquid Fund Growth ₹390.345
↑ 0.05 ₹51,593 0.5 1.4 3.3 6.9 7.4 5.86% 1M 4D 1M 7D Aditya Birla Sun Life Liquid Fund Growth ₹424.901
↑ 0.06 ₹51,913 0.5 1.5 3.3 6.9 7.3 5.89% 1M 13D 1M 13D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 2 Sep 25 Research Highlights & Commentary of 6 Funds showcased
Commentary Axis Liquid Fund LIC MF Liquid Fund DSP Liquidity Fund Invesco India Liquid Fund ICICI Prudential Liquid Fund Aditya Birla Sun Life Liquid Fund Point 1 Upper mid AUM (₹36,757 Cr). Bottom quartile AUM (₹11,199 Cr). Lower mid AUM (₹22,245 Cr). Bottom quartile AUM (₹14,240 Cr). Upper mid AUM (₹51,593 Cr). Highest AUM (₹51,913 Cr). Point 2 Established 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 3 Top rated. Rating: 3★ (bottom quartile). Rating: 3★ (bottom quartile). Rating: 4★ (upper mid). Rating: 4★ (upper mid). Rating: 4★ (lower 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: 6.97% (top quartile). 1Y return: 6.84% (bottom quartile). 1Y return: 6.94% (upper mid). 1Y return: 6.93% (upper mid). 1Y return: 6.89% (bottom quartile). 1Y return: 6.92% (lower mid). Point 6 1M return: 0.47% (upper mid). 1M return: 0.46% (bottom quartile). 1M return: 0.47% (upper mid). 1M return: 0.47% (lower mid). 1M return: 0.46% (bottom quartile). 1M return: 0.47% (top quartile). Point 7 Sharpe: 3.64 (upper mid). Sharpe: 3.14 (bottom quartile). Sharpe: 4.00 (top quartile). Sharpe: 3.63 (upper mid). Sharpe: 3.19 (bottom quartile). Sharpe: 3.23 (lower mid). 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: -0.86 (bottom quartile). Information ratio: 0.00 (bottom quartile). Point 9 Yield to maturity (debt): 5.85% (upper mid). Yield to maturity (debt): 5.85% (lower mid). Yield to maturity (debt): 5.83% (bottom quartile). Yield to maturity (debt): 5.78% (bottom quartile). Yield to maturity (debt): 5.86% (upper mid). Yield to maturity (debt): 5.89% (top quartile). Point 10 Modified duration: 0.12 yrs (upper mid). Modified duration: 0.12 yrs (lower mid). Modified duration: 0.12 yrs (bottom quartile). Modified duration: 0.11 yrs (upper mid). Modified duration: 0.10 yrs (top quartile). Modified duration: 0.12 yrs (bottom quartile). Axis Liquid Fund
LIC MF Liquid Fund
DSP Liquidity Fund
Invesco India Liquid Fund
ICICI Prudential Liquid Fund
Aditya Birla Sun Life Liquid Fund
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 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 Below is the key information for LIC MF 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 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 Below is the key information for Invesco India Liquid Fund Returns up to 1 year are on (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 Below is the key information for ICICI Prudential Liquid 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 (02 Sep 25) ₹2,936.21 ↑ 0.38 (0.01 %) Net Assets (Cr) ₹36,757 on 31 Jul 25 Category Debt - Liquid Fund AMC Axis Asset Management Company Limited Rating ☆☆☆☆ Risk Low Expense Ratio 0.23 Sharpe Ratio 3.64 Information Ratio 0 Alpha Ratio 0 Min Investment 500 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 5.85% Effective Maturity 1 Month 15 Days Modified Duration 1 Month 12 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 20 ₹10,000 31 Aug 21 ₹10,323 31 Aug 22 ₹10,725 31 Aug 23 ₹11,450 31 Aug 24 ₹12,294 31 Aug 25 ₹13,151 Returns for Axis Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 2 Sep 25 Duration Returns 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
Year Returns 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
Name Since Tenure Devang Shah 5 Nov 12 12.83 Yr. Aditya Pagaria 13 Aug 16 9.06 Yr. Sachin Jain 3 Jul 23 2.17 Yr. Data below for Axis Liquid Fund as on 31 Jul 25
Asset Allocation
Asset Class Value Cash 99.77% Other 0.23% Debt Sector Allocation
Sector Value Cash Equivalent 80.05% Corporate 14.71% Government 5.01% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Clearing Corporation Of India Ltd
CBLO/Reverse Repo | -6% ₹2,451 Cr Canara Bank
Domestic Bonds | -4% ₹1,798 Cr 36,000 Indian Oil Corporation Limited
Commercial Paper | -4% ₹1,720 Cr 34,500 India (Republic of)
- | -4% ₹1,488 Cr 150,000,000 Punjab National Bank
Certificate of Deposit | -3% ₹1,343 Cr 27,000 91 Days Tbill (Md 28/08/2025)
Sovereign Bonds | -3% ₹1,275 Cr 128,124,300 182 DTB 29082025
Sovereign Bonds | -3% ₹1,251 Cr 125,365,700 Bharti Airtel Limited
Commercial Paper | -3% ₹1,022 Cr 20,500 National Bank For Agriculture And Rural Development
Commercial Paper | -3% ₹1,020 Cr 20,500 HDFC Bank Ltd.
Certificate of Deposit | -2% ₹990 Cr 20,000 2. LIC MF Liquid Fund
LIC MF Liquid Fund
Growth Launch Date 11 Mar 02 NAV (02 Sep 25) ₹4,766.29 ↑ 0.62 (0.01 %) Net Assets (Cr) ₹11,199 on 31 Jul 25 Category Debt - Liquid Fund AMC LIC Mutual Fund Asset Mgmt Co Ltd Rating ☆☆☆ Risk Low Expense Ratio 0.22 Sharpe Ratio 3.14 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 5.85% Effective Maturity 1 Month 12 Days Modified Duration 1 Month 12 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 20 ₹10,000 31 Aug 21 ₹10,320 31 Aug 22 ₹10,711 31 Aug 23 ₹11,421 31 Aug 24 ₹12,262 31 Aug 25 ₹13,102 Returns for LIC MF Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 2 Sep 25 Duration Returns 1 Month 0.5% 3 Month 1.4% 6 Month 3.3% 1 Year 6.8% 3 Year 6.9% 5 Year 5.6% 10 Year 15 Year Since launch 6.9% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Rahul Singh 5 Oct 15 9.91 Yr. Data below for LIC MF Liquid Fund as on 31 Jul 25
Asset Allocation
Asset Class Value Cash 99.76% Other 0.24% Debt Sector Allocation
Sector Value Cash Equivalent 75.56% Corporate 20.91% Government 3.29% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 182 DTB 18102024
Sovereign Bonds | -5% ₹547 Cr 55,000,000
↑ 55,000,000 Reverse Repo
CBLO/Reverse Repo | -4% ₹513 Cr Indian Oil Corporation Limited
Commercial Paper | -3% ₹399 Cr 8,000 Motilal Oswal Financial Services Limited
Commercial Paper | -3% ₹398 Cr 8,000 India (Republic of)
- | -3% ₹395 Cr 40,000,000
↑ 40,000,000 Chennai Petroleum Cor Cp 18-08-25**
Commercial Paper | -2% ₹300 Cr 6,000 91 Days Tbill (Md 28/08/2025)
Sovereign Bonds | -2% ₹299 Cr 30,000,000
↑ 30,000,000 HDFC Bank Limited
Certificate of Deposit | -2% ₹298 Cr 6,000 Indian Oil Corporation Ltd.
Commercial Paper | -2% ₹298 Cr 6,000 Birla Group Holdings Private Limited
Commercial Paper | -2% ₹298 Cr 6,000 3. DSP Liquidity Fund
DSP Liquidity Fund
Growth Launch Date 23 Nov 05 NAV (02 Sep 25) ₹3,764.72 ↑ 0.48 (0.01 %) Net Assets (Cr) ₹22,245 on 31 Jul 25 Category Debt - Liquid Fund AMC DSP BlackRock Invmt Managers Pvt. Ltd. Rating ☆☆☆ Risk Low Expense Ratio 0.21 Sharpe Ratio 4 Information Ratio 0 Alpha Ratio 0 Min Investment 1,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 5.83% Effective Maturity 1 Month 17 Days Modified Duration 1 Month 13 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 20 ₹10,000 31 Aug 21 ₹10,319 31 Aug 22 ₹10,719 31 Aug 23 ₹11,434 31 Aug 24 ₹12,271 31 Aug 25 ₹13,124 Returns for DSP Liquidity Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 2 Sep 25 Duration Returns 1 Month 0.5% 3 Month 1.5% 6 Month 3.3% 1 Year 6.9% 3 Year 7% 5 Year 5.6% 10 Year 15 Year Since launch 6.9% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Karan Mundhra 31 May 21 4.26 Yr. Shalini Vasanta 1 Aug 24 1.08 Yr. Data below for DSP Liquidity Fund as on 31 Jul 25
Asset Allocation
Asset Class Value Cash 99.8% Other 0.2% Debt Sector Allocation
Sector Value Cash Equivalent 81.05% Corporate 16.14% Government 2.61% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 91 Days Tbill (Md 28/08/2025)
Sovereign Bonds | -4% ₹821 Cr 82,500,000
↑ 2,500,000 Treps / Reverse Repo Investments
CBLO/Reverse Repo | -3% ₹616 Cr 182 Days Tbill
Sovereign Bonds | -3% ₹577 Cr 58,000,000
↑ 40,000,000 Small Industries Development Bk Of India
Commercial Paper | -3% ₹569 Cr 11,500 HDFC Securities Limited
Commercial Paper | -2% ₹519 Cr 10,500 Reliance Retail Ventures Limited
Commercial Paper | -2% ₹499 Cr 10,000 91 Days Tbill (Md 28/08/2025)
Sovereign Bonds | -2% ₹473 Cr 47,500,000 HDFC Bank Limited
Certificate of Deposit | -2% ₹473 Cr 9,500 Axis Bank Limited
Certificate of Deposit | -2% ₹449 Cr 9,000
↑ 1,500 Reliance Jio Infocomm Ltd.
Debentures | -2% ₹448 Cr 9,000 4. Invesco India Liquid Fund
Invesco India Liquid Fund
Growth Launch Date 17 Nov 06 NAV (02 Sep 25) ₹3,624.43 ↑ 0.47 (0.01 %) Net Assets (Cr) ₹14,240 on 31 Jul 25 Category Debt - Liquid Fund AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆☆ Risk Low Expense Ratio 0.22 Sharpe Ratio 3.63 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 5.78% Effective Maturity 1 Month 9 Days Modified Duration 1 Month 9 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 20 ₹10,000 31 Aug 21 ₹10,320 31 Aug 22 ₹10,719 31 Aug 23 ₹11,435 31 Aug 24 ₹12,275 31 Aug 25 ₹13,127 Returns for Invesco India Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 2 Sep 25 Duration Returns 1 Month 0.5% 3 Month 1.5% 6 Month 3.3% 1 Year 6.9% 3 Year 7% 5 Year 5.6% 10 Year 15 Year Since launch 7.1% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Krishna Cheemalapati 25 Apr 11 14.36 Yr. Data below for Invesco India Liquid Fund as on 31 Jul 25
Asset Allocation
Asset Class Value Cash 99.76% Other 0.24% Debt Sector Allocation
Sector Value Cash Equivalent 84.59% Corporate 12.02% Government 3.16% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Triparty Repo
CBLO/Reverse Repo | -7% ₹963 Cr 91 Days Tbill Red 16-10-2025
Sovereign Bonds | -3% ₹446 Cr 45,000,000 India (Republic of)
- | -3% ₹400 Cr 40,000,000 182 Days Tbill
Sovereign Bonds | -3% ₹368 Cr 37,000,000
↑ 25,000,000 National Bank For Agriculture And Rural Development
Commercial Paper | -2% ₹299 Cr 30,000,000 Birla Group Holdings Private Limited
Commercial Paper | -2% ₹299 Cr 30,000,000 Treasury Bills
Sovereign Bonds | -2% ₹298 Cr 30,000,000 Indian Oil Corporation Limited
Commercial Paper | -2% ₹274 Cr 27,500,000 91 Days Tbill (Md 28/08/2025)
Sovereign Bonds | -2% ₹271 Cr 27,100,000 Titan Company Limited
Debentures | -2% ₹251 Cr 25,000,000
↑ 25,000,000 5. ICICI Prudential Liquid Fund
ICICI Prudential Liquid Fund
Growth Launch Date 17 Nov 05 NAV (02 Sep 25) ₹390.345 ↑ 0.05 (0.01 %) Net Assets (Cr) ₹51,593 on 31 Jul 25 Category Debt - Liquid Fund AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Low Expense Ratio 0.29 Sharpe Ratio 3.19 Information Ratio -0.86 Alpha Ratio -0.09 Min Investment 500 Min SIP Investment 99 Exit Load NIL Yield to Maturity 5.86% Effective Maturity 1 Month 7 Days Modified Duration 1 Month 4 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 20 ₹10,000 31 Aug 21 ₹10,318 31 Aug 22 ₹10,711 31 Aug 23 ₹11,425 31 Aug 24 ₹12,264 31 Aug 25 ₹13,110 Returns for ICICI Prudential Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 2 Sep 25 Duration Returns 1 Month 0.5% 3 Month 1.4% 6 Month 3.3% 1 Year 6.9% 3 Year 7% 5 Year 5.6% 10 Year 15 Year Since launch 7.1% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Nikhil Kabra 1 Dec 23 1.75 Yr. Darshil Dedhia 12 Jun 23 2.22 Yr. Data below for ICICI Prudential Liquid Fund as on 31 Jul 25
Asset Allocation
Asset Class Value Cash 99.75% Other 0.25% Debt Sector Allocation
Sector Value Cash Equivalent 76.54% Corporate 21.21% Government 2% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Treps
CBLO/Reverse Repo | -8% ₹4,550 Cr 91 Days Tbill (Md 28/08/2025)
Sovereign Bonds | -6% ₹3,128 Cr 313,000,000 Reverse Repo (8/18/2025)
CBLO/Reverse Repo | -4% ₹2,000 Cr Bank Of India
Certificate of Deposit | -3% ₹1,497 Cr 30,000 Reliance Retail Ventures Limited
Commercial Paper | -2% ₹1,249 Cr 25,000 Small Industries Development Bank Of India
Commercial Paper | -2% ₹1,248 Cr 25,000 91 Days Tbill (Md 28/08/2025)
Sovereign Bonds | -2% ₹1,246 Cr 125,000,000 India (Republic of)
- | -2% ₹1,110 Cr 112,500,000
↑ 112,500,000 Indian Bank
Certificate of Deposit | -2% ₹999 Cr 20,000 National Bank For Agriculture And Rural Development
Commercial Paper | -2% ₹999 Cr 20,000 6. Aditya Birla Sun Life Liquid Fund
Aditya Birla Sun Life Liquid Fund
Growth Launch Date 30 Mar 04 NAV (02 Sep 25) ₹424.901 ↑ 0.06 (0.01 %) Net Assets (Cr) ₹51,913 on 31 Jul 25 Category Debt - Liquid Fund AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆ Risk Low Expense Ratio 0.34 Sharpe Ratio 3.23 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 5.89% Effective Maturity 1 Month 13 Days Modified Duration 1 Month 13 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 20 ₹10,000 31 Aug 21 ₹10,320 31 Aug 22 ₹10,718 31 Aug 23 ₹11,442 31 Aug 24 ₹12,281 31 Aug 25 ₹13,132 Returns for Aditya Birla Sun Life Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 2 Sep 25 Duration Returns 1 Month 0.5% 3 Month 1.5% 6 Month 3.3% 1 Year 6.9% 3 Year 7% 5 Year 5.6% 10 Year 15 Year Since launch 7% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Sunaina Cunha 15 Jul 11 14.14 Yr. Kaustubh Gupta 15 Jul 11 14.14 Yr. Sanjay Pawar 1 Jul 22 3.17 Yr. Data below for Aditya Birla Sun Life Liquid Fund as on 31 Jul 25
Asset Allocation
Asset Class Value Cash 99.74% Other 0.26% Debt Sector Allocation
Sector Value Cash Equivalent 85.73% Corporate 11.02% Government 2.98% Credit Quality
Rating Value AA 0.19% AAA 99.81% Top Securities Holdings / Portfolio
Name Holding Value Quantity 8.2% Govt Stock 2025
Sovereign Bonds | -3% ₹1,741 Cr 173,701,000 Net Receivables / (Payables)
Net Current Assets | -3% -₹1,637 Cr 91 Days Tbill (Md 28/08/2025)
Sovereign Bonds | -3% ₹1,308 Cr 131,000,000
↓ -5,000,000 Canara Bank
Certificate of Deposit | -2% ₹1,194 Cr 24,000 Indusind Bank Ltd.
Debentures | -2% ₹994 Cr 20,000
↑ 8,000 Indusind Bank Ltd.
Debentures | -2% ₹994 Cr 20,000
↑ 6,000 India (Republic of)
- | -2% ₹992 Cr 100,000,000 Punjab & Sind Bank (17/11/2025) ** #
Net Current Assets | -2% ₹985 Cr 20,000
↑ 20,000 Bharti Airtel Limited
Commercial Paper | -2% ₹972 Cr 19,500 182 Days Tbill
Sovereign Bonds | -2% ₹962 Cr 96,500,000
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!
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
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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