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6 Best Performing Liquid Mutual Funds to Invest in 2020 | Fincash.com

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6 Best Liquid Mutual Funds 2020

Updated on August 3, 2020 , 67126 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.

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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.

6 Best Liquid Funds India FY 20 - 21

FundNAVNet Assets (Cr)1 MO (%)3 MO (%)6 MO (%)1 YR (%)2019 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Nippon India Liquid Fund  Growth ₹4,897.88
↑ 0.50
₹30,6040.312.45.36.73.57%1M 21D1M 23D
Aditya Birla Sun Life Liquid Fund Growth ₹322.703
↑ 0.03
₹36,6790.31.12.55.36.73.67%1M 20D1M 20D
Axis Liquid Fund Growth ₹2,226.76
↑ 0.26
₹27,0320.312.45.36.63.38%1M 22D1M 24D
UTI Liquid Cash Plan Growth ₹3,285.26
↑ 0.35
₹27,0810.312.45.26.63.41%1M 20D1M 24D
ICICI Prudential Liquid Fund Growth ₹296.975
↑ 0.04
₹57,3350.312.55.36.60%
Tata Liquid Fund Growth ₹3,160.57
↑ 0.42
₹17,8580.312.55.36.63.49%1M 13D1M 13D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 5 Aug 20
*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. Nippon India Liquid Fund 

(Erstwhile Reliance Liquid Fund - Treasury Plan)

The investment objective of the scheme is to generate optimal returns consistent with moderate levels of risk and high liquidity. Accordingly, investments shall predominantly be made in Debt and Money Market Instruments.

Nippon India Liquid Fund  is a Debt - Liquid Fund fund was launched on 9 Dec 03. It is a fund with Low risk and has given a CAGR/Annualized return of 7.3% since its launch.  Ranked 11 in Liquid Fund category.  Return for 2019 was 6.7% , 2018 was 7.4% and 2017 was 6.7% .

Below is the key information for Nippon India Liquid Fund 

Nippon India Liquid Fund 
Growth
Launch Date 9 Dec 03
NAV (05 Aug 20) ₹4,897.88 ↑ 0.50   (0.01 %)
Net Assets (Cr) ₹30,604 on 30 Jun 20
Category Debt - Liquid Fund
AMC Nippon Life Asset Management Ltd.
Rating
Risk Low
Expense Ratio 0.21
Sharpe Ratio 15.72
Information Ratio -1.16
Alpha Ratio -0.89
Min Investment 100
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 3.57%
Effective Maturity 1 Month 23 Days
Modified Duration 1 Month 21 Days

Growth of 10,000 investment over the years.

DateValue
31 Jul 15₹10,000
31 Jul 16₹10,803
31 Jul 17₹11,543
31 Jul 18₹12,349
31 Jul 19₹13,278
31 Jul 20₹13,985

Nippon 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 ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for Nippon 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 5 Aug 20

DurationReturns
1 Month 0.3%
3 Month 1%
6 Month 2.4%
1 Year 5.3%
3 Year 6.6%
5 Year 6.9%
10 Year
15 Year
Since launch 7.3%
Historical performance (Yearly) on absolute basis
YearReturns
2019 6.7%
2018 7.4%
2017 6.7%
2016 7.7%
2015 8.3%
2014 9.1%
2013 9.2%
2012 9.7%
2011 8.9%
2010 5.3%
Fund Manager information for Nippon India Liquid Fund 
NameSinceTenure
Anju Chhajer1 Oct 136.75 Yr.
Kinjal Desai25 May 182.1 Yr.

Data below for Nippon India Liquid Fund  as on 30 Jun 20

Asset Allocation
Asset ClassValue
Cash100%
Debt Sector Allocation
SectorValue
Cash Equivalent77.83%
Corporate21.19%
Government0.98%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
84 DTB 20082020
Sovereign Bonds | -
16%₹4,859 Cr488,000,000
↓ -84,500,000
91 DTB 17092020
Sovereign Bonds | -
11%₹3,229 Cr325,000,000
↑ 325,000,000
91 DTB 03092020
Sovereign Bonds | -
5%₹1,601 Cr161,000,000
↑ 161,000,000
91 DTB 09-Jul-2020
Sovereign Bonds | -
4%₹1,149 Cr115,000,000
↑ 115,000,000
91 DTB 27082020
Sovereign Bonds | -
3%₹995 Cr100,000,000
↑ 100,000,000
91 DTB 13082020
Sovereign Bonds | -
3%₹892 Cr89,500,000
Net Current Assets
Net Current Assets | -
3%-₹845 Cr
Hindustan Zinc Limited
Commercial Paper | -
2%₹747 Cr15,000
NTPC Limited
Commercial Paper | -
2%₹746 Cr15,000
↑ 15,000
Reliance Industries Limited
Commercial Paper | -
2%₹695 Cr14,000
↑ 14,000

2. 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.

Aditya Birla Sun Life Liquid Fund is a Debt - Liquid Fund fund was launched on 30 Mar 04. It is a fund with Low risk and has given a CAGR/Annualized return of 7.4% since its launch.  Ranked 15 in Liquid Fund category.  Return for 2019 was 6.7% , 2018 was 7.4% and 2017 was 6.7% .

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 (05 Aug 20) ₹322.703 ↑ 0.03   (0.01 %)
Net Assets (Cr) ₹36,679 on 30 Jun 20
Category Debt - Liquid Fund
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Low
Expense Ratio 0.23
Sharpe Ratio 17.24
Information Ratio -1.2
Alpha Ratio -0.31
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 3.67%
Effective Maturity 1 Month 20 Days
Modified Duration 1 Month 20 Days

Growth of 10,000 investment over the years.

DateValue
31 Jul 15₹10,000
31 Jul 16₹10,809
31 Jul 17₹11,546
31 Jul 18₹12,354
31 Jul 19₹13,278
31 Jul 20₹13,988

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 ₹200,132.
Net Profit of ₹20,132
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 5 Aug 20

DurationReturns
1 Month 0.3%
3 Month 1.1%
6 Month 2.5%
1 Year 5.3%
3 Year 6.6%
5 Year 6.9%
10 Year
15 Year
Since launch 7.4%
Historical performance (Yearly) on absolute basis
YearReturns
2019 6.7%
2018 7.4%
2017 6.7%
2016 7.7%
2015 8.4%
2014 9.2%
2013 9.3%
2012 9.7%
2011 9%
2010 5.5%
Fund Manager information for Aditya Birla Sun Life Liquid Fund
NameSinceTenure
Sunaina Cunha18 Jun 0911.04 Yr.
Kaustubh Gupta15 Jul 118.97 Yr.

Data below for Aditya Birla Sun Life Liquid Fund as on 30 Jun 20

Asset Allocation
Asset ClassValue
Cash100%
Debt Sector Allocation
SectorValue
Cash Equivalent71.53%
Corporate27.25%
Government1.22%
Credit Quality
RatingValue
AA0.03%
AAA99.97%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
84 DTB 20082020
Sovereign Bonds | -
9%₹3,336 Cr335,000,000
↑ 257,500,000
Reliance Industries Limited
Commercial Paper | -
4%₹1,495 Cr30,000
91 DTB 13082020
Sovereign Bonds | -
4%₹1,494 Cr150,000,000
91 DTB 17092020
Sovereign Bonds | -
3%₹1,232 Cr124,000,000
↑ 124,000,000
Reliance Jio Infocomm Limited
Commercial Paper | -
3%₹996 Cr20,000
Cholamandalam Investment And Fin. Co. Ltd
Commercial Paper | -
3%₹995 Cr20,000
Reliance Industries Limited
Commercial Paper | -
3%₹994 Cr20,000
↑ 20,000
Reliance Industries Limited
Debentures | -
2%₹851 Cr8,450
↑ 8,450
91 DTB 23072020
Sovereign Bonds | -
2%₹844 Cr84,500,000
POWER FINANCE CORPORATION LIMITED
Debentures | -
2%₹808 Cr8,000
↑ 8,000

3. 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.

Axis Liquid Fund is a Debt - Liquid Fund fund was launched on 9 Oct 09. It is a fund with Low risk and has given a CAGR/Annualized return of 7.7% since its launch.  Ranked 21 in Liquid Fund category.  Return for 2019 was 6.6% , 2018 was 7.5% and 2017 was 6.7% .

Below is the key information for Axis Liquid Fund

Axis Liquid Fund
Growth
Launch Date 9 Oct 09
NAV (05 Aug 20) ₹2,226.76 ↑ 0.26   (0.01 %)
Net Assets (Cr) ₹27,032 on 30 Jun 20
Category Debt - Liquid Fund
AMC Axis Asset Management Company Limited
Rating
Risk Low
Expense Ratio 0.14
Sharpe Ratio 12.76
Information Ratio 0
Alpha Ratio 0
Min Investment 500
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 3.38%
Effective Maturity 1 Month 24 Days
Modified Duration 1 Month 22 Days

Growth of 10,000 investment over the years.

DateValue
31 Jul 15₹10,000
31 Jul 16₹10,801
31 Jul 17₹11,543
31 Jul 18₹12,355
31 Jul 19₹13,276
31 Jul 20₹13,981

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 ₹200,132.
Net Profit of ₹20,132
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 5 Aug 20

DurationReturns
1 Month 0.3%
3 Month 1%
6 Month 2.4%
1 Year 5.3%
3 Year 6.6%
5 Year 6.9%
10 Year
15 Year
Since launch 7.7%
Historical performance (Yearly) on absolute basis
YearReturns
2019 6.6%
2018 7.5%
2017 6.7%
2016 7.6%
2015 8.4%
2014 9.1%
2013 9.2%
2012 9.7%
2011 9%
2010 5.6%
Fund Manager information for Axis Liquid Fund
NameSinceTenure
Devang Shah5 Nov 127.66 Yr.
Aditya Pagaria13 Aug 163.88 Yr.

Data below for Axis Liquid Fund as on 30 Jun 20

Asset Allocation
Asset ClassValue
Cash100%
Debt Sector Allocation
SectorValue
Cash Equivalent82.28%
Corporate16.09%
Government1.62%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
84 DTB 20082020
Sovereign Bonds | -
20%₹5,526 Cr555,000,000
↑ 25,000,000
Clearing Corporation Of India Ltd
CBLO | -
7%₹1,930 Cr
Net Receivables / (Payables)
Net Current Assets | -
6%-₹1,741 Cr
91 DTB 13082020
Sovereign Bonds | -
6%₹1,624 Cr163,000,000
91 DTB 27082020
Sovereign Bonds | -
5%₹1,338 Cr134,500,000
↑ 134,500,000
Reliance Industries Limited
Commercial Paper | -
5%₹1,247 Cr25,000
↑ 15,000
91 DTB 24092020
Sovereign Bonds | -
4%₹993 Cr100,000,000
↑ 100,000,000
Larsen And Toubro Limited
Commercial Paper | -
3%₹920 Cr18,500
↑ 18,500
National Housing Bank
Commercial Paper | -
3%₹744 Cr15,000
↑ 15,000
Reliance Jio Infocomm Limited
Commercial Paper | -
2%₹499 Cr10,000

4. UTI Liquid Cash Plan

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.

UTI Liquid Cash Plan is a Debt - Liquid Fund fund was launched on 11 Dec 03. It is a fund with Low risk and has given a CAGR/Annualized return of 7.3% since its launch.  Ranked 32 in Liquid Fund category.  Return for 2019 was 6.6% , 2018 was 7.4% and 2017 was 6.7% .

Below is the key information for UTI Liquid Cash Plan

UTI Liquid Cash Plan
Growth
Launch Date 11 Dec 03
NAV (05 Aug 20) ₹3,285.26 ↑ 0.35   (0.01 %)
Net Assets (Cr) ₹27,081 on 30 Jun 20
Category Debt - Liquid Fund
AMC UTI Asset Management Company Ltd
Rating
Risk Low
Expense Ratio 0.17
Sharpe Ratio 15.3
Information Ratio -1.72
Alpha Ratio -1.04
Min Investment 500
Min SIP Investment 1,500
Exit Load NIL
Yield to Maturity 3.41%
Effective Maturity 1 Month 24 Days
Modified Duration 1 Month 20 Days

Growth of 10,000 investment over the years.

DateValue
31 Jul 15₹10,000
31 Jul 16₹10,800
31 Jul 17₹11,540
31 Jul 18₹12,348
31 Jul 19₹13,269
31 Jul 20₹13,957

UTI Liquid Cash Plan SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for UTI Liquid Cash Plan

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 5 Aug 20

DurationReturns
1 Month 0.3%
3 Month 1%
6 Month 2.4%
1 Year 5.2%
3 Year 6.5%
5 Year 6.9%
10 Year
15 Year
Since launch 7.3%
Historical performance (Yearly) on absolute basis
YearReturns
2019 6.6%
2018 7.4%
2017 6.7%
2016 7.7%
2015 8.3%
2014 9.1%
2013 9.1%
2012 9.6%
2011 8.9%
2010 5.4%
Fund Manager information for UTI Liquid Cash Plan
NameSinceTenure
Amandeep Chopra14 Dec 0613.55 Yr.
Amit Sharma7 Jul 172.98 Yr.

Data below for UTI Liquid Cash Plan as on 30 Jun 20

Asset Allocation
Asset ClassValue
Cash100%
Debt Sector Allocation
SectorValue
Cash Equivalent78.02%
Corporate18.69%
Government3.29%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
84 DTB 20082020
Sovereign Bonds | -
20%₹5,302 Cr53,250,000,000
↑ 18,250,000,000
91 DTB 17092020
Sovereign Bonds | -
12%₹3,229 Cr32,500,000,000
↑ 32,500,000,000
Net Current Assets
Net Current Assets | -
7%-₹1,837 Cr00
91 DTB 09-Jul-2020
Sovereign Bonds | -
4%₹999 Cr10,000,000,000
Reliance Jio Infocomm Limited
Commercial Paper | -
4%₹998 Cr10,000,000,000
↑ 1,000,000,000
91 DTB 27082020
Sovereign Bonds | -
3%₹921 Cr9,250,000,000
↑ 9,250,000,000
91 DTB 10092020
Sovereign Bonds | -
3%₹755 Cr7,600,000,000
↑ 7,600,000,000
91 DTB 03092020
Sovereign Bonds | -
3%₹731 Cr7,350,000,000
↑ 7,350,000,000
91 DTB 13082020
Sovereign Bonds | -
3%₹697 Cr7,000,000,000
Reliance Jio Infocomm Limited
Commercial Paper | -
3%₹695 Cr7,000,000,000
↑ 7,000,000,000

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.

ICICI Prudential Liquid Fund is a Debt - Liquid Fund fund was launched on 17 Nov 05. It is a fund with Low risk and has given a CAGR/Annualized return of 7.7% since its launch.  Ranked 20 in Liquid Fund category.  Return for 2019 was 6.6% , 2018 was 7.4% and 2017 was 6.6% .

Below is the key information for ICICI Prudential Liquid Fund

ICICI Prudential Liquid Fund
Growth
Launch Date 17 Nov 05
NAV (05 Aug 20) ₹296.975 ↑ 0.04   (0.01 %)
Net Assets (Cr) ₹57,335 on 30 Jun 20
Category Debt - Liquid Fund
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Low
Expense Ratio 0.22
Sharpe Ratio 13.47
Information Ratio -1.69
Alpha Ratio -1.38
Min Investment 500
Min SIP Investment 99
Exit Load NIL
Yield to Maturity 0%
Effective Maturity
Modified Duration

Growth of 10,000 investment over the years.

DateValue
31 Jul 15₹10,000
31 Jul 16₹10,803
31 Jul 17₹11,541
31 Jul 18₹12,344
31 Jul 19₹13,257
31 Jul 20₹13,960

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 ₹200,132.
Net Profit of ₹20,132
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 5 Aug 20

DurationReturns
1 Month 0.3%
3 Month 1%
6 Month 2.5%
1 Year 5.3%
3 Year 6.5%
5 Year 6.9%
10 Year
15 Year
Since launch 7.7%
Historical performance (Yearly) on absolute basis
YearReturns
2019 6.6%
2018 7.4%
2017 6.6%
2016 7.7%
2015 8.3%
2014 9.1%
2013 9.3%
2012 9.7%
2011 8.9%
2010 5.5%
Fund Manager information for ICICI Prudential Liquid Fund
NameSinceTenure
Rahul Goswami27 Sep 127.76 Yr.
Rohan Maru19 Sep 136.78 Yr.

Data below for ICICI Prudential Liquid Fund as on 30 Jun 20

Asset Allocation
Asset ClassValue
Cash100%
Debt Sector Allocation
SectorValue
Cash Equivalent84.74%
Corporate15.21%
Government0.04%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Reverse Repo
CBLO/Reverse Repo | -
13%₹7,174 Cr
84 DTB 20082020
Sovereign Bonds | -
12%₹6,721 Cr675,000,000
↑ 10,000,000
91 DTB 24092020
Sovereign Bonds | -
5%₹2,721 Cr274,123,400
↑ 274,123,400
91 DTB 27082020
Sovereign Bonds | -
5%₹2,687 Cr270,000,000
↑ 270,000,000
91 DTB 13082020
Sovereign Bonds | -
3%₹1,764 Cr177,000,000
↑ 15,000,000
Reliance Industries Limited
Commercial Paper | -
3%₹1,615 Cr32,500
↑ 32,500
91 DTB 10092020
Sovereign Bonds | -
3%₹1,529 Cr153,837,800
↑ 153,837,800
Reliance Industries Limited
Commercial Paper | -
2%₹1,368 Cr27,500
↑ 17,500
Reliance Jio Infocomm Limited
Commercial Paper | -
2%₹1,095 Cr22,000
91 DTB 03092020
Sovereign Bonds | -
2%₹1,094 Cr110,000,000
↑ 110,000,000

6. Tata Liquid Fund

(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.

Tata Liquid Fund is a Debt - Liquid Fund fund was launched on 1 Sep 04. It is a fund with Low risk and has given a CAGR/Annualized return of 7.5% since its launch.  Ranked 18 in Liquid Fund category.  Return for 2019 was 6.6% , 2018 was 7.4% and 2017 was 6.7% .

Below is the key information for Tata Liquid Fund

Tata Liquid Fund
Growth
Launch Date 1 Sep 04
NAV (05 Aug 20) ₹3,160.57 ↑ 0.42   (0.01 %)
Net Assets (Cr) ₹17,858 on 30 Jun 20
Category Debt - Liquid Fund
AMC Tata Asset Management Limited
Rating
Risk Low
Expense Ratio 0.34
Sharpe Ratio 10.8
Information Ratio -1.06
Alpha Ratio -2.12
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 3.49%
Effective Maturity 1 Month 13 Days
Modified Duration 1 Month 13 Days

Growth of 10,000 investment over the years.

DateValue
31 Jul 15₹10,000
31 Jul 16₹10,801
31 Jul 17₹11,541
31 Jul 18₹12,350
31 Jul 19₹13,265
31 Jul 20₹13,970

Tata 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 ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for Tata 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 5 Aug 20

DurationReturns
1 Month 0.3%
3 Month 1%
6 Month 2.5%
1 Year 5.3%
3 Year 6.6%
5 Year 6.9%
10 Year
15 Year
Since launch 7.5%
Historical performance (Yearly) on absolute basis
YearReturns
2019 6.6%
2018 7.4%
2017 6.7%
2016 7.7%
2015 8.4%
2014 9.1%
2013 9.3%
2012 9.8%
2011 9%
2010 5%
Fund Manager information for Tata Liquid Fund
NameSinceTenure
Amit Somani16 Oct 136.71 Yr.
Abhishek Sonthalia6 Feb 200.4 Yr.

Data below for Tata Liquid Fund as on 30 Jun 20

Asset Allocation
Asset ClassValue
Cash101.2%
Debt Sector Allocation
SectorValue
Cash Equivalent83.58%
Corporate13.86%
Government3.76%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
84 DTB 20082020
Sovereign Bonds | -
9%₹1,568 Cr157,500,000
↑ 80,500,000
91 DTB 24092020
Sovereign Bonds | -
8%₹1,484 Cr149,500,000
↑ 149,500,000
182 DTB 20082020
Sovereign Bonds | -
7%₹1,215 Cr122,000,000
D) Repo
CBLO/Reverse Repo | -
6%₹1,057 Cr
(C) Treps
CBLO/Reverse Repo | -
5%₹821 Cr
91 DTB 27082020
Sovereign Bonds | -
4%₹801 Cr80,500,000
↑ 80,500,000
91 DTB 13082020
Sovereign Bonds | -
4%₹747 Cr75,000,000
91 DTB 07082020
Sovereign Bonds | -
4%₹626 Cr62,831,400
↑ 19,331,400
IDFC First Bank Limited
Certificate of Deposit | -
3%₹498 Cr50,000
Reliance Jio Infocomm Limited
Commercial Paper | -
3%₹496 Cr10,000
↑ 10,000

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!

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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