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6 Best Performing Liquid Mutual Funds to Invest in 2023 | Fincash.com

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6 Best Liquid Mutual Funds 2023

Updated on May 25, 2023 , 135277 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 23 - 24

FundNAVNet Assets (Cr)1 MO (%)3 MO (%)6 MO (%)1 YR (%)2022 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Axis Liquid Fund Growth ₹2,510.96
↑ 0.46
₹25,7390.61.83.46.34.97.09%1M 8D1M 8D
UTI Liquid Cash Plan Growth ₹3,702.79
↑ 0.72
₹27,7720.61.83.46.24.87.23%1M 27D1M 27D
Aditya Birla Sun Life Liquid Fund Growth ₹363.672
↑ 0.07
₹39,1310.61.83.56.34.87.32%1M 20D1M 20D
Nippon India Liquid Fund  Growth ₹5,511.04
↑ 1.01
₹22,9830.61.83.46.24.87.09%1M 14D1M 19D
HDFC Liquid Fund Growth ₹4,430.7
↑ 0.79
₹50,7530.61.73.46.24.86.8%1M 17D1M 17D
SBI Liquid Fund Growth ₹3,533.25
↑ 0.61
₹60,3760.61.73.46.24.87.09%1M 24D1M 28D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 26 May 23
*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.

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% since its launch.  Ranked 21 in Liquid Fund category.  Return for 2022 was 4.9% , 2021 was 3.3% and 2020 was 4.3% .

Below is the key information for Axis Liquid Fund

Axis Liquid Fund
Growth
Launch Date 9 Oct 09
NAV (26 May 23) ₹2,510.96 ↑ 0.46   (0.02 %)
Net Assets (Cr) ₹25,739 on 30 Apr 23
Category Debt - Liquid Fund
AMC Axis Asset Management Company Limited
Rating
Risk Low
Expense Ratio 0.25
Sharpe Ratio 0.39
Information Ratio 0
Alpha Ratio 0
Min Investment 500
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.09%
Effective Maturity 1 Month 8 Days
Modified Duration 1 Month 8 Days

Growth of 10,000 investment over the years.

DateValue
30 Apr 18₹10,000
30 Apr 19₹10,753
30 Apr 20₹11,409
30 Apr 21₹11,796
30 Apr 22₹12,202
30 Apr 23₹12,934

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 26 May 23

DurationReturns
1 Month 0.6%
3 Month 1.8%
6 Month 3.4%
1 Year 6.3%
3 Year 4.3%
5 Year 5.3%
10 Year
15 Year
Since launch 7%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.9%
2021 3.3%
2020 4.3%
2019 6.6%
2018 7.5%
2017 6.7%
2016 7.6%
2015 8.4%
2014 9.1%
2013 9.2%
Fund Manager information for Axis Liquid Fund
NameSinceTenure
Devang Shah5 Nov 1210.49 Yr.
Aditya Pagaria13 Aug 166.72 Yr.

Data below for Axis Liquid Fund as on 30 Apr 23

Asset Allocation
Asset ClassValue
Cash100%
Debt Sector Allocation
SectorValue
Cash Equivalent70.62%
Government22.24%
Corporate7.14%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Clearing Corporation Of India Ltd
CBLO/Reverse Repo | -
6%₹1,895 Cr
91 DTB 13072023
Sovereign Bonds | -
3%₹989 Cr100,000,000
91 DTB 15062023
Sovereign Bonds | -
3%₹806 Cr81,000,000
Punjab National Bank
Certificate of Deposit | -
3%₹795 Cr16,000
National Bank For Agriculture And Rural Development
Commercial Paper | -
3%₹777 Cr15,600
↑ 4,100
Canara Bank
Certificate of Deposit | -
3%₹749 Cr15,000
91 DTB 25052023
Sovereign Bonds | -
3%₹749 Cr75,000,000
Indian Bank
Certificate of Deposit | -
3%₹747 Cr15,000
Punjab National Bank
Certificate of Deposit | -
2%₹738 Cr15,000
↑ 15,000
Small Industries Development Bank Of India
Commercial Paper | -
2%₹572 Cr11,500

2. 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 6.8% since its launch.  Ranked 32 in Liquid Fund category.  Return for 2022 was 4.8% , 2021 was 3.3% and 2020 was 4.2% .

Below is the key information for UTI Liquid Cash Plan

UTI Liquid Cash Plan
Growth
Launch Date 11 Dec 03
NAV (26 May 23) ₹3,702.79 ↑ 0.72   (0.02 %)
Net Assets (Cr) ₹27,772 on 30 Apr 23
Category Debt - Liquid Fund
AMC UTI Asset Management Company Ltd
Rating
Risk Low
Expense Ratio 0.23
Sharpe Ratio -0.1
Information Ratio -4.86
Alpha Ratio -0.16
Min Investment 500
Min SIP Investment 1,500
Exit Load NIL
Yield to Maturity 7.23%
Effective Maturity 1 Month 27 Days
Modified Duration 1 Month 27 Days

Growth of 10,000 investment over the years.

DateValue
30 Apr 18₹10,000
30 Apr 19₹10,752
30 Apr 20₹11,396
30 Apr 21₹11,784
30 Apr 22₹12,187
30 Apr 23₹12,914

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 ₹197,169.
Net Profit of ₹17,169
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 26 May 23

DurationReturns
1 Month 0.6%
3 Month 1.8%
6 Month 3.4%
1 Year 6.2%
3 Year 4.3%
5 Year 5.3%
10 Year
15 Year
Since launch 6.8%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.8%
2021 3.3%
2020 4.2%
2019 6.6%
2018 7.4%
2017 6.7%
2016 7.7%
2015 8.3%
2014 9.1%
2013 9.1%
Fund Manager information for UTI Liquid Cash Plan
NameSinceTenure
Amit Sharma7 Jul 175.82 Yr.

Data below for UTI Liquid Cash Plan as on 30 Apr 23

Asset Allocation
Asset ClassValue
Cash100%
Debt Sector Allocation
SectorValue
Cash Equivalent60.03%
Government25.42%
Corporate14.55%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
National Bank For Agriculture And Rural Development
Commercial Paper | -
4%₹1,243 Cr12,500,000,000
91 DTB 27072023
Sovereign Bonds | -
4%₹1,233 Cr12,500,000,000
↑ 12,500,000,000
91 DTB 23062023
Sovereign Bonds | -
4%₹1,192 Cr12,000,000,000
Net Current Assets
Net Current Assets | -
4%₹1,041 Cr
Indian Bank
Certificate of Deposit | -
3%₹846 Cr8,500,000,000
91 DTB 18052023
Sovereign Bonds | -
3%₹790 Cr7,900,000,000
91 DTB 06072023
Sovereign Bonds | -
3%₹743 Cr7,500,000,000
91 DTB 20072023
Sovereign Bonds | -
3%₹741 Cr7,500,000,000
↑ 7,500,000,000
7.16% Govt Stock 2023
Sovereign Bonds | -
2%₹700 Cr7,000,000,000
Punjab & Sind Bank
Certificate of Deposit | -
2%₹500 Cr5,000,000,000

3. 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% since its launch.  Ranked 15 in Liquid Fund category.  Return for 2022 was 4.8% , 2021 was 3.3% and 2020 was 4.3% .

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 (26 May 23) ₹363.672 ↑ 0.07   (0.02 %)
Net Assets (Cr) ₹39,131 on 30 Apr 23
Category Debt - Liquid Fund
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Low
Expense Ratio 0.33
Sharpe Ratio -0.02
Information Ratio -4.07
Alpha Ratio -0.16
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 7.32%
Effective Maturity 1 Month 20 Days
Modified Duration 1 Month 20 Days

Growth of 10,000 investment over the years.

DateValue
30 Apr 18₹10,000
30 Apr 19₹10,747
30 Apr 20₹11,403
30 Apr 21₹11,799
30 Apr 22₹12,202
30 Apr 23₹12,931

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 26 May 23

DurationReturns
1 Month 0.6%
3 Month 1.8%
6 Month 3.5%
1 Year 6.3%
3 Year 4.3%
5 Year 5.3%
10 Year
15 Year
Since launch 7%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.8%
2021 3.3%
2020 4.3%
2019 6.7%
2018 7.4%
2017 6.7%
2016 7.7%
2015 8.4%
2014 9.2%
2013 9.3%
Fund Manager information for Aditya Birla Sun Life Liquid Fund
NameSinceTenure
Sunaina Cunha15 Jul 1111.8 Yr.
Kaustubh Gupta15 Jul 1111.8 Yr.
Sanjay Pawar1 Jul 220.83 Yr.
Dhaval Joshi21 Nov 220.44 Yr.

Data below for Aditya Birla Sun Life Liquid Fund as on 30 Apr 23

Asset Allocation
Asset ClassValue
Cash100%
Debt Sector Allocation
SectorValue
Cash Equivalent68.16%
Corporate17.34%
Government14.5%
Credit Quality
RatingValue
AA0.09%
AAA99.91%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Reverse Repo
CBLO/Reverse Repo | -
6%₹2,622 Cr
7.16% Govt Stock 2023
Sovereign Bonds | -
6%₹2,433 Cr243,337,000
91 DTB 13072023
Sovereign Bonds | -
5%₹1,908 Cr192,921,400
Indian Bank
Certificate of Deposit | -
4%₹1,792 Cr36,000
Bank Of Maharashtra
Certificate of Deposit | -
2%₹996 Cr20,000
Dbs Bank India Limited
Certificate of Deposit | -
2%₹993 Cr20,000
Indian Bank
Certificate of Deposit | -
2%₹991 Cr20,000
Reliance Retail Ventures Limited
Commercial Paper | -
2%₹985 Cr19,800
Net Receivables / (Payables)
CBLO | -
2%-₹875 Cr
ICICI Securities Limited
Commercial Paper | -
2%₹795 Cr16,000

4. 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 6.8% since its launch.  Ranked 11 in Liquid Fund category.  Return for 2022 was 4.8% , 2021 was 3.2% and 2020 was 4.3% .

Below is the key information for Nippon India Liquid Fund 

Nippon India Liquid Fund 
Growth
Launch Date 9 Dec 03
NAV (26 May 23) ₹5,511.04 ↑ 1.01   (0.02 %)
Net Assets (Cr) ₹22,983 on 30 Apr 23
Category Debt - Liquid Fund
AMC Nippon Life Asset Management Ltd.
Rating
Risk Low
Expense Ratio 0.32
Sharpe Ratio -0.37
Information Ratio 0
Alpha Ratio 0
Min Investment 100
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 7.09%
Effective Maturity 1 Month 19 Days
Modified Duration 1 Month 14 Days

Growth of 10,000 investment over the years.

DateValue
30 Apr 18₹10,000
30 Apr 19₹10,753
30 Apr 20₹11,410
30 Apr 21₹11,800
30 Apr 22₹12,198
30 Apr 23₹12,915

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 ₹197,169.
Net Profit of ₹17,169
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 26 May 23

DurationReturns
1 Month 0.6%
3 Month 1.8%
6 Month 3.4%
1 Year 6.2%
3 Year 4.2%
5 Year 5.3%
10 Year
15 Year
Since launch 6.8%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.8%
2021 3.2%
2020 4.3%
2019 6.7%
2018 7.4%
2017 6.7%
2016 7.7%
2015 8.3%
2014 9.1%
2013 9.2%
Fund Manager information for Nippon India Liquid Fund 
NameSinceTenure
Anju Chhajer1 Oct 139.59 Yr.
Siddharth Deb1 Mar 221.17 Yr.
Kinjal Desai25 May 184.94 Yr.
Akshay Sharma1 Dec 220.41 Yr.

Data below for Nippon India Liquid Fund  as on 30 Apr 23

Asset Allocation
Asset ClassValue
Cash100%
Debt Sector Allocation
SectorValue
Cash Equivalent64.03%
Corporate21.17%
Government14.8%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Net Current Assets
Net Current Assets | -
16%-₹3,780 Cr
Reverse Repo
CBLO/Reverse Repo | -
9%₹2,026 Cr
91 DTB 15062023
Sovereign Bonds | -
6%₹1,488 Cr150,000,000
Reliance Retail Ventures Limited
Commercial Paper | -
4%₹985 Cr20,000
↑ 20,000
91 DTB 08062023
Sovereign Bonds | -
4%₹930 Cr93,682,500
91 DTB 25052023
Sovereign Bonds | -
4%₹881 Cr88,500,000
↓ -7,500,000
Sikka Ports & Terminals Limited
Commercial Paper | -
3%₹674 Cr13,500
↓ -2,500
Small Industries Development Bank Of India
Commercial Paper | -
3%₹595 Cr12,000
Union Bank Of India
Certificate of Deposit | -
2%₹507 Cr10,200
Small Industries Development Bank Of India
Commercial Paper | -
2%₹498 Cr10,000

5. HDFC Liquid Fund

The primary objective of the Scheme is to enhance income consistent with a high level of liquidity, through a judicious portfolio mix comprising of money market and debt instruments.

HDFC Liquid Fund is a Debt - Liquid Fund fund was launched on 17 Oct 00. It is a fund with Low risk and has given a CAGR/Annualized return of 6.8% since its launch.  Ranked 35 in Liquid Fund category.  Return for 2022 was 4.8% , 2021 was 3.2% and 2020 was 4.1% .

Below is the key information for HDFC Liquid Fund

HDFC Liquid Fund
Growth
Launch Date 17 Oct 00
NAV (26 May 23) ₹4,430.7 ↑ 0.79   (0.02 %)
Net Assets (Cr) ₹50,753 on 30 Apr 23
Category Debt - Liquid Fund
AMC HDFC Asset Management Company Limited
Rating
Risk Low
Expense Ratio 0.3
Sharpe Ratio -0.65
Information Ratio -5.9
Alpha Ratio -0.24
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 6.8%
Effective Maturity 1 Month 17 Days
Modified Duration 1 Month 17 Days

Growth of 10,000 investment over the years.

DateValue
30 Apr 18₹10,000
30 Apr 19₹10,741
30 Apr 20₹11,378
30 Apr 21₹11,751
30 Apr 22₹12,148
30 Apr 23₹12,863

HDFC 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 HDFC 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 26 May 23

DurationReturns
1 Month 0.6%
3 Month 1.7%
6 Month 3.4%
1 Year 6.2%
3 Year 4.2%
5 Year 5.2%
10 Year
15 Year
Since launch 6.8%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.8%
2021 3.2%
2020 4.1%
2019 6.5%
2018 7.2%
2017 6.5%
2016 7.6%
2015 8.4%
2014 9.1%
2013 9.3%
Fund Manager information for HDFC Liquid Fund
NameSinceTenure
Anupam Joshi27 Oct 157.51 Yr.
Swapnil Jangam6 Oct 220.57 Yr.

Data below for HDFC Liquid Fund as on 30 Apr 23

Asset Allocation
Asset ClassValue
Cash100%
Debt Sector Allocation
SectorValue
Cash Equivalent67.02%
Government19.36%
Corporate13.61%
Credit Quality
RatingValue
AA0.26%
AAA99.74%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
91 DTB 23062023
Sovereign Bonds | -
5%₹2,502 Cr252,000,000
Bank Of Baroda
Certificate of Deposit | -
5%₹2,482 Cr50,000
91 DTB 13072023
Sovereign Bonds | -
5%₹2,473 Cr250,000,000
Reverse Repo
CBLO/Reverse Repo | -
4%₹2,195 Cr
Ntpc Limited
Commercial Paper | -
4%₹1,978 Cr40,000
↑ 40,000
Small Industries Development Bank Of India
Commercial Paper | -
4%₹1,972 Cr40,000
91 DTB 03082023
Sovereign Bonds | -
3%₹1,749 Cr177,500,000
↑ 177,500,000
91 DTB 15062023
Sovereign Bonds | -
3%₹1,492 Cr150,000,000
Punjab National Bank
Certificate of Deposit | -
2%₹1,241 Cr25,000
Reliance Retail Ventures Limited
Commercial Paper | -
2%₹1,000 Cr20,000

6. SBI Liquid Fund

(Erstwhile SBI - Premier Liquid Fund)

To provide attractive returns to the Magnum/Unit holders either through periodic dividends or through capital appreciation through an actively managed portfolio of debt and money market instruments. Income may be generated through the receipt of coupon payments, the amortization of the discount on the debt instruments, receipt of dividends or purchase and sale of securities in the underlying portfolio.

SBI Liquid Fund is a Debt - Liquid Fund fund was launched on 22 Mar 07. It is a fund with Low risk and has given a CAGR/Annualized return of 6.9% since its launch.  Ranked 40 in Liquid Fund category.  Return for 2022 was 4.8% , 2021 was 3.3% and 2020 was 4.2% .

Below is the key information for SBI Liquid Fund

SBI Liquid Fund
Growth
Launch Date 22 Mar 07
NAV (26 May 23) ₹3,533.25 ↑ 0.61   (0.02 %)
Net Assets (Cr) ₹60,376 on 30 Apr 23
Category Debt - Liquid Fund
AMC SBI Funds Management Private Limited
Rating
Risk Low
Expense Ratio 0.28
Sharpe Ratio -0.35
Information Ratio 0
Alpha Ratio 0
Min Investment 50,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 7.09%
Effective Maturity 1 Month 28 Days
Modified Duration 1 Month 24 Days

Growth of 10,000 investment over the years.

DateValue
30 Apr 18₹10,000
30 Apr 19₹10,740
30 Apr 20₹11,375
30 Apr 21₹11,760
30 Apr 22₹12,159
30 Apr 23₹12,875

SBI 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 SBI 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 26 May 23

DurationReturns
1 Month 0.6%
3 Month 1.7%
6 Month 3.4%
1 Year 6.2%
3 Year 4.3%
5 Year 5.2%
10 Year
15 Year
Since launch 6.9%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.8%
2021 3.3%
2020 4.2%
2019 6.5%
2018 7.3%
2017 6.6%
2016 7.6%
2015 8.3%
2014 9%
2013 9.2%
Fund Manager information for SBI Liquid Fund
NameSinceTenure
R. Arun7 May 184.98 Yr.

Data below for SBI Liquid Fund as on 30 Apr 23

Asset Allocation
Asset ClassValue
Cash100%
Debt Sector Allocation
SectorValue
Cash Equivalent79.9%
Government14.07%
Corporate6.03%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
91 DTB 15062023
Sovereign Bonds | -
7%₹4,716 Cr474,276,600
91 DTB 23062023
Sovereign Bonds | -
5%₹3,501 Cr352,574,000
National Bank For Agriculture And Rural Development
Commercial Paper | -
5%₹3,295 Cr66,000
↓ -8,000
91 DTB 08062023
Sovereign Bonds | -
5%₹3,286 Cr330,000,000
Reliance Retail Ventures Limited
Commercial Paper | -
4%₹2,956 Cr60,000
↑ 60,000
Union Bank Of India
Certificate of Deposit | -
4%₹2,595 Cr52,170
↓ -14,500
91 DTB 01062023
Sovereign Bonds | -
4%₹2,517 Cr252,500,000
Small Industries Development Bank Of India
Commercial Paper | -
4%₹2,485 Cr50,000
Punjab National Bank
Certificate of Deposit | -
3%₹2,324 Cr46,500
↓ -2,000
Treps
CBLO/Reverse Repo | -
3%₹2,240 Cr

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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Knhendre, posted on 15 Sep 22 5:05 PM

Good knowledgeable information, you should have to give an example

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