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6 Best Liquid Mutual Funds 2024
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.
Talk to our investment specialist
6 Best Liquid Funds India FY 24 - 25
Fund NAV Net Assets (Cr) 1 MO (%) 3 MO (%) 6 MO (%) 1 YR (%) 2023 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Axis Liquid Fund Growth ₹2,674.28
↑ 0.56 ₹33,841 0.7 1.9 3.7 7.3 7.1 7.45% 1M 6D 1M 6D Aditya Birla Sun Life Liquid Fund Growth ₹387.127
↑ 0.08 ₹43,962 0.7 1.9 3.7 7.2 7.1 7.48% 1M 10D 1M 10D UTI Liquid Cash Plan Growth ₹3,941.39
↑ 0.78 ₹26,477 0.7 1.9 3.7 7.2 7 7.37% 1M 5D 1M 5D Mirae Asset Cash Management Fund Growth ₹2,519.68
↑ 0.51 ₹12,303 0.7 1.9 3.7 7.3 7 7.34% 1M 6D 1M 7D ICICI Prudential Liquid Fund Growth ₹355.74
↑ 0.07 ₹52,980 0.7 1.9 3.7 7.2 7 7.45% 1M 1D 1M 4D Invesco India Liquid Fund Growth ₹3,302.43
↑ 0.60 ₹10,827 0.7 1.9 3.7 7.3 7 7.39% 1M 15D 1M 15D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 16 Apr 24 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. 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 Below is the key information for Axis 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. 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 Below is the key information for Aditya Birla Sun Life Liquid Fund Returns up to 1 year are on The investment objective of the scheme is to generate steady and reasonable income, with low risk and high level of liquidity from a portfolio of money market securities and high quality debt. 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 Below is the key information for UTI Liquid Cash Plan Returns up to 1 year are on The investment objective of the scheme
is to generate consistent returns with a
high level of liquidity in a judicious
portfolio mix comprising of money
market and debt instruments. The
Scheme does not guarantee any
returns. Mirae Asset Cash Management Fund is a Debt - Liquid Fund fund was launched on 12 Jan 09. It is a fund with Low risk and has given a Below is the key information for Mirae Asset Cash Management 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. 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 Below is the key information for ICICI Prudential Liquid 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. Invesco India Liquid Fund is a Debt - Liquid Fund fund was launched on 17 Nov 06. It is a fund with Low risk and has given a Below is the key information for Invesco India Liquid Fund Returns up to 1 year are on 1. Axis Liquid Fund
CAGR/Annualized return of 7% since its launch. Ranked 21 in Liquid Fund category. Return for 2023 was 7.1% , 2022 was 4.9% and 2021 was 3.3% . Axis Liquid Fund
Growth Launch Date 9 Oct 09 NAV (16 Apr 24) ₹2,674.28 ↑ 0.56 (0.02 %) Net Assets (Cr) ₹33,841 on 29 Feb 24 Category Debt - Liquid Fund AMC Axis Asset Management Company Limited Rating ☆☆☆☆ Risk Low Expense Ratio 0.22 Sharpe Ratio 1.59 Information Ratio 0 Alpha Ratio 0 Min Investment 500 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.45% Effective Maturity 1 Month 6 Days Modified Duration 1 Month 6 Days Growth of 10,000 investment over the years.
Date Value 31 Mar 19 ₹10,000 31 Mar 20 ₹10,625 31 Mar 21 ₹11,005 31 Mar 22 ₹11,379 31 Mar 23 ₹12,029 31 Mar 24 ₹12,901 Returns for Axis Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Apr 24 Duration Returns 1 Month 0.7% 3 Month 1.9% 6 Month 3.7% 1 Year 7.3% 3 Year 5.5% 5 Year 5.2% 10 Year 15 Year Since launch 7% Historical performance (Yearly) on absolute basis
Year Returns 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% 2014 9.1% Fund Manager information for Axis Liquid Fund
Name Since Tenure Devang Shah 5 Nov 12 11.41 Yr. Aditya Pagaria 13 Aug 16 7.64 Yr. Sachin Jain 3 Jul 23 0.75 Yr. Data below for Axis Liquid Fund as on 29 Feb 24
Asset Allocation
Asset Class Value Cash 99.78% Other 0.22% Debt Sector Allocation
Sector Value Cash Equivalent 78.14% Corporate 18.09% Government 3.55% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Clearing Corporation Of India Ltd
CBLO/Reverse Repo | -6% ₹2,023 Cr Union Bank Of India
Certificate of Deposit | -4% ₹1,208 Cr 24,500 182 DTB 16052024
Sovereign Bonds | -3% ₹1,186 Cr 120,000,000
↑ 45,000,000 Small Industries Development Bank of India
Commercial Paper | -3% ₹1,013 Cr 20,500 Indian Bank
Domestic Bonds | -3% ₹982 Cr 20,000
↑ 20,000 Reliance Retail Ventures Limited
Commercial Paper | -2% ₹849 Cr 17,000 Canara Bank
Domestic Bonds | -2% ₹787 Cr 16,000 Punjab National Bank
Domestic Bonds | -2% ₹785 Cr 16,000
↑ 16,000 Small Industries Development Bank Of India
Certificate of Deposit | -2% ₹762 Cr 15,500
↑ 15,500 91 DTB 11042024
Sovereign Bonds | -2% ₹746 Cr 75,000,000 2. Aditya Birla Sun Life Liquid Fund
CAGR/Annualized return of 7% since its launch. Ranked 15 in Liquid Fund category. Return for 2023 was 7.1% , 2022 was 4.8% and 2021 was 3.3% . Aditya Birla Sun Life Liquid Fund
Growth Launch Date 30 Mar 04 NAV (16 Apr 24) ₹387.127 ↑ 0.08 (0.02 %) Net Assets (Cr) ₹43,962 on 29 Feb 24 Category Debt - Liquid Fund AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆ Risk Low Expense Ratio 0.33 Sharpe Ratio 1.2 Information Ratio -3.56 Alpha Ratio -0.24 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 7.48% Effective Maturity 1 Month 10 Days Modified Duration 1 Month 10 Days Growth of 10,000 investment over the years.
Date Value 31 Mar 19 ₹10,000 31 Mar 20 ₹10,627 31 Mar 21 ₹11,013 31 Mar 22 ₹11,386 31 Mar 23 ₹12,033 31 Mar 24 ₹12,898 Returns for Aditya Birla Sun Life Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Apr 24 Duration Returns 1 Month 0.7% 3 Month 1.9% 6 Month 3.7% 1 Year 7.2% 3 Year 5.5% 5 Year 5.2% 10 Year 15 Year Since launch 7% Historical performance (Yearly) on absolute basis
Year Returns 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% 2014 9.2% Fund Manager information for Aditya Birla Sun Life Liquid Fund
Name Since Tenure Sunaina Cunha 15 Jul 11 12.72 Yr. Kaustubh Gupta 15 Jul 11 12.72 Yr. Sanjay Pawar 1 Jul 22 1.75 Yr. Dhaval Joshi 21 Nov 22 1.36 Yr. Data below for Aditya Birla Sun Life Liquid Fund as on 29 Feb 24
Asset Allocation
Asset Class Value Cash 99.74% Other 0.26% Debt Sector Allocation
Sector Value Cash Equivalent 71.96% Corporate 18.46% Government 9.32% Credit Quality
Rating Value AA 0.25% AAA 99.75% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reverse Repo
CBLO/Reverse Repo | -9% ₹3,584 Cr Net Receivables / (Payables)
CBLO | -5% -₹1,923 Cr Bank Of Baroda
Certificate of Deposit | -3% ₹1,183 Cr 24,000 National Bank For Agriculture And Rural Development
Commercial Paper | -3% ₹999 Cr 20,000 Canfin Homes Limited
Commercial Paper | -3% ₹999 Cr 20,000 India (Republic of)
- | -3% ₹989 Cr 100,000,000 India (Republic of)
- | -3% ₹984 Cr 100,000,000
↑ 100,000,000 182 DTB 29032024
Sovereign Bonds | -2% ₹963 Cr 96,500,000 Axis Bank Limited
Certificate of Deposit | -2% ₹938 Cr 19,000 Small Industries Development Bank Of India
Commercial Paper | -2% ₹936 Cr 19,000 3. UTI Liquid Cash Plan
CAGR/Annualized return of 6.9% since its launch. Ranked 32 in Liquid Fund category. Return for 2023 was 7% , 2022 was 4.8% and 2021 was 3.3% . UTI Liquid Cash Plan
Growth Launch Date 11 Dec 03 NAV (16 Apr 24) ₹3,941.39 ↑ 0.78 (0.02 %) Net Assets (Cr) ₹26,477 on 29 Feb 24 Category Debt - Liquid Fund AMC UTI Asset Management Company Ltd Rating ☆☆☆ Risk Low Expense Ratio 0.23 Sharpe Ratio 1.22 Information Ratio 0 Alpha Ratio 0 Min Investment 500 Min SIP Investment 1,500 Exit Load NIL Yield to Maturity 7.37% Effective Maturity 1 Month 5 Days Modified Duration 1 Month 5 Days Growth of 10,000 investment over the years.
Date Value 31 Mar 19 ₹10,000 31 Mar 20 ₹10,615 31 Mar 21 ₹10,994 31 Mar 22 ₹11,367 31 Mar 23 ₹12,012 31 Mar 24 ₹12,875 Returns for UTI Liquid Cash Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Apr 24 Duration Returns 1 Month 0.7% 3 Month 1.9% 6 Month 3.7% 1 Year 7.2% 3 Year 5.5% 5 Year 5.2% 10 Year 15 Year Since launch 6.9% Historical performance (Yearly) on absolute basis
Year Returns 2023 7% 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% Fund Manager information for UTI Liquid Cash Plan
Name Since Tenure Amit Sharma 7 Jul 17 6.74 Yr. Data below for UTI Liquid Cash Plan as on 29 Feb 24
Asset Allocation
Asset Class Value Cash 99.76% Other 0.24% Debt Sector Allocation
Sector Value Cash Equivalent 83.98% Corporate 10.7% Government 5.08% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Net Current Assets
Net Current Assets | -7% ₹1,775 Cr Small Industries Development Bank of India
Debentures | -4% ₹983 Cr 10,000,000,000
↑ 10,000,000,000 Canara Bank
Domestic Bonds | -3% ₹786 Cr 8,000,000,000
↑ 8,000,000,000 National Bank for Agriculture and Rural Development
Commercial Paper | -3% ₹737 Cr 7,500,000,000
↑ 7,500,000,000 91 DTB 21032024
Sovereign Bonds | -3% ₹674 Cr 6,750,000,000 Larsen & Toubro Ltd.
Commercial Paper | -2% ₹499 Cr 5,000,000,000 91 DTB 02052024
Sovereign Bonds | -2% ₹496 Cr 5,000,000,000 National Bank for Agriculture and Rural Development
Commercial Paper | -2% ₹494 Cr 5,000,000,000 India (Republic of)
- | -2% ₹494 Cr 5,000,000,000 Punjab & Sind Bank
Debentures | -2% ₹493 Cr 5,000,000,000 4. Mirae Asset Cash Management Fund
CAGR/Annualized return of 6.2% since its launch. Ranked 48 in Liquid Fund category. Return for 2023 was 7% , 2022 was 4.8% and 2021 was 3.3% . Mirae Asset Cash Management Fund
Growth Launch Date 12 Jan 09 NAV (16 Apr 24) ₹2,519.68 ↑ 0.51 (0.02 %) Net Assets (Cr) ₹12,303 on 29 Feb 24 Category Debt - Liquid Fund AMC Mirae Asset Global Inv (India) Pvt. Ltd Rating ☆☆ Risk Low Expense Ratio 0.19 Sharpe Ratio 1.1 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.34% Effective Maturity 1 Month 7 Days Modified Duration 1 Month 6 Days Growth of 10,000 investment over the years.
Date Value 31 Mar 19 ₹10,000 31 Mar 20 ₹10,614 31 Mar 21 ₹10,993 31 Mar 22 ₹11,364 31 Mar 23 ₹12,007 31 Mar 24 ₹12,872 Returns for Mirae Asset Cash Management Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Apr 24 Duration Returns 1 Month 0.7% 3 Month 1.9% 6 Month 3.7% 1 Year 7.3% 3 Year 5.5% 5 Year 5.2% 10 Year 15 Year Since launch 6.2% Historical performance (Yearly) on absolute basis
Year Returns 2023 7% 2022 4.8% 2021 3.3% 2020 4.2% 2019 6.6% 2018 7.3% 2017 6.6% 2016 7.2% 2015 7.8% 2014 8.7% Fund Manager information for Mirae Asset Cash Management Fund
Name Since Tenure Abhishek Iyer 28 Dec 20 3.26 Yr. Data below for Mirae Asset Cash Management Fund as on 29 Feb 24
Asset Allocation
Asset Class Value Cash 99.8% Other 0.2% Debt Sector Allocation
Sector Value Cash Equivalent 64.24% Corporate 23.68% Government 11.88% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Net Receivables / (Payables)
CBLO | -4% -₹420 Cr India (Republic of)
- | -3% ₹346 Cr 35,000,000
↑ 5,000,000 State Bank Of India
Certificate of Deposit | -3% ₹291 Cr 29,500,000
↑ 29,500,000 National Bank For Agriculture And Rural Development
Commercial Paper | -3% ₹275 Cr 27,500,000 Canara Bank
Domestic Bonds | -3% ₹272 Cr 27,500,000 Grasim Industries Ltd.
Commercial Paper | -2% ₹250 Cr 25,000,000 Small Industries Development Bank Of India
Certificate of Deposit | -2% ₹249 Cr 25,000,000
↓ -20,000,000 91 DTB 21032024
Sovereign Bonds | -2% ₹225 Cr 22,500,000 HDFC Bank Limited
Commercial Paper | -2% ₹200 Cr 20,000,000 Aditya Birla Fashion & Retail Ltd.
Commercial Paper | -2% ₹200 Cr 20,000,000 5. ICICI Prudential Liquid Fund
CAGR/Annualized return of 7.1% since its launch. Ranked 20 in Liquid Fund category. Return for 2023 was 7% , 2022 was 4.8% and 2021 was 3.2% . ICICI Prudential Liquid Fund
Growth Launch Date 17 Nov 05 NAV (16 Apr 24) ₹355.74 ↑ 0.07 (0.02 %) Net Assets (Cr) ₹52,980 on 29 Feb 24 Category Debt - Liquid Fund AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Low Expense Ratio 0.29 Sharpe Ratio 1 Information Ratio -5.39 Alpha Ratio -0.26 Min Investment 500 Min SIP Investment 99 Exit Load NIL Yield to Maturity 7.45% Effective Maturity 1 Month 4 Days Modified Duration 1 Month 1 Day Growth of 10,000 investment over the years.
Date Value 31 Mar 19 ₹10,000 31 Mar 20 ₹10,620 31 Mar 21 ₹11,003 31 Mar 22 ₹11,370 31 Mar 23 ₹12,006 31 Mar 24 ₹12,867 Returns for ICICI Prudential Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Apr 24 Duration Returns 1 Month 0.7% 3 Month 1.9% 6 Month 3.7% 1 Year 7.2% 3 Year 5.4% 5 Year 5.2% 10 Year 15 Year Since launch 7.1% Historical performance (Yearly) on absolute basis
Year Returns 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% 2014 9.1% Fund Manager information for ICICI Prudential Liquid Fund
Name Since Tenure Rohan Maru 19 Sep 13 10.54 Yr. Nikhil Kabra 1 Dec 23 0.33 Yr. Darshil Dedhia 12 Jun 23 0.81 Yr. Data below for ICICI Prudential Liquid Fund as on 29 Feb 24
Asset Allocation
Asset Class Value Cash 99.77% Other 0.23% Debt Sector Allocation
Sector Value Cash Equivalent 67.18% Government 17.02% Corporate 15.56% Credit Quality
Rating Value AA 0.1% AAA 99.9% Top Securities Holdings / Portfolio
Name Holding Value Quantity India (Republic of)
- | -5% ₹2,462 Cr 250,000,000
↑ 250,000,000 India (Republic of)
- | -4% ₹2,022 Cr 205,535,500
↑ 205,535,500 Canara Bank
Certificate of Deposit | -4% ₹1,625 Cr 33,000 Union Bank Of India
Certificate of Deposit | -2% ₹989 Cr 20,000 National Bank For Agriculture And Rural Development
Commercial Paper | -2% ₹985 Cr 20,000 Punjab National Bank
Certificate of Deposit | -2% ₹985 Cr 20,000 Bank Of Baroda
Certificate of Deposit | -2% ₹985 Cr 20,000 Bank of Baroda
Debentures | -2% ₹984 Cr 20,000 Eris Lifesciences Ltd
Commercial Paper | -2% ₹955 Cr 19,500
↑ 19,500 Small Industries Development Bank of India
Commercial Paper | -2% ₹836 Cr 16,900 6. Invesco India Liquid Fund
CAGR/Annualized return of 7.1% since its launch. Ranked 9 in Liquid Fund category. Return for 2023 was 7% , 2022 was 4.8% and 2021 was 3.3% . Invesco India Liquid Fund
Growth Launch Date 17 Nov 06 NAV (17 Apr 24) ₹3,302.43 ↑ 0.60 (0.02 %) Net Assets (Cr) ₹10,827 on 29 Feb 24 Category Debt - Liquid Fund AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆☆ Risk Low Expense Ratio 0.22 Sharpe Ratio 1.31 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 7.39% Effective Maturity 1 Month 15 Days Modified Duration 1 Month 15 Days Growth of 10,000 investment over the years.
Date Value 31 Mar 19 ₹10,000 31 Mar 20 ₹10,598 31 Mar 21 ₹10,971 31 Mar 22 ₹11,340 31 Mar 23 ₹11,979 31 Mar 24 ₹12,842 Returns for Invesco India Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Apr 24 Duration Returns 1 Month 0.7% 3 Month 1.9% 6 Month 3.7% 1 Year 7.3% 3 Year 5.5% 5 Year 5.1% 10 Year 15 Year Since launch 7.1% Historical performance (Yearly) on absolute basis
Year Returns 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% 2014 9.1% Fund Manager information for Invesco India Liquid Fund
Name Since Tenure Krishna Cheemalapati 25 Apr 11 12.95 Yr. Prateek Jain 14 Feb 22 2.13 Yr. Data below for Invesco India Liquid Fund as on 29 Feb 24
Asset Allocation
Asset Class Value Cash 99.84% Other 0.16% Debt Sector Allocation
Sector Value Cash Equivalent 77.06% Corporate 16% Government 6.78% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Triparty Repo
CBLO/Reverse Repo | -4% ₹455 Cr Bank Of Baroda
Certificate of Deposit | -2% ₹200 Cr 20,000,000 91 DTB 02052024
Sovereign Bonds | -2% ₹198 Cr 20,000,000 Indian Bank
Domestic Bonds | -2% ₹197 Cr 20,000,000
↑ 20,000,000 Reliance Retail Ventures Limited
Commercial Paper | -2% ₹197 Cr 20,000,000
↑ 20,000,000 HDFC Bank Ltd.
Debentures | -2% ₹197 Cr 20,000,000
↑ 20,000,000 Canara Bank
Domestic Bonds | -2% ₹197 Cr 20,000,000
↑ 20,000,000 Kotak Securities Ltd
Commercial Paper | -2% ₹197 Cr 20,000,000 Larsen & Toubro Ltd.
Commercial Paper | -2% ₹196 Cr 20,000,000
↑ 20,000,000 HDFC Bank Ltd.
Debentures | -2% ₹196 Cr 20,000,000
↑ 20,000,000
How to evaluate Liquid Mutual Funds?
When looking for a liquid mutual fund, the past return should not be the only Factor for consideration. Other factors like fund size, track record, credit quality of Underlying securities should also be kept in mind.
1. Investment Plans
Liquid funds come with different plans like a daily dividend plan, weekly dividend plan, monthly dividend plan and growth plans. In the growth option, profits made by the scheme are invested back into it. This results in the NAV (Net Asset Value) of the scheme rising over time. In the dividend option, the profits made by the fund are not re-invested. Dividends are distributed to the investor from time to time. Investors can choose their plan as per their convenience and liquidity needs.
2. Expense Ratio
Mutual funds charge a fee to manage your funds called an expense ratio. As per SEBI norms, the upper limit of expense ratio is 2.25%. In case of liquid funds, they maintain a lower expense ratio to provide relatively higher returns over a short period of time.
3. Investment Horizon
Plan your investment horizon. Liquid funds are exclusively meant to invest surplus cash over a very short period of time that is for 91 days. So, if you have an idle cash, you can invest here for a short period and earn better returns than bank Savings Account. In case you have a longer investment horizon of up to 1 year, then you may consider investing in short duration funds to get relatively higher returns.
Features of Liquid Mutual Funds
1. Exit Load Of Liquid Mutual Funds
Considering the fact that liquid mutual funds are short-term investments with a low maturity period, the majority of the funds under this category do not levy any exit load on redemption. Also, if there exists any exit load, it is very nominal and usually not more than a week. Liquid funds generally do not have an exit load given they are very short investment products.
2. Volatility Of Liquid Fund Investment
Generally, the Volatility of liquid funds is low as the investment lasts for a few days to weeks. So, the risk of loss in investment is quite less. However, it is suggested to make a liquid fund investment considering the market condition to avoid the opportunity of loss.
3. Lock-in Period Of Best Liquid Funds
Given that liquid mutual funds are very short-term investment options, liquid funds do not have any lock-in period. Liquid Funds can be invested for a time period as short as one day going upto a couple of weeks.
4. Liquid Fund Returns
Liquid funds are one of the best short-term investments during a high Inflation period. In the high inflation period, the interest rate on the liquid fund is high. Thus, helping liquid mutual funds to earn good returns. The liquid fund returns are usually higher than that of other traditional investments like bank fixed deposits or savings accounts. However, it is suggested to invest in best liquid funds choosing a right option (growth, dividend payout, dividend re-investment) suiting your needs.
5. Liquid Funds Taxation
Generally, liquid fund returns receive in the form of dividends are not taxed in the hands of investors. However, a Dividend Distribution Tax (DDT) of approximately 28% is deducted by the mutual fund company from the dividends. Moreover, for the investors who have opted for growth option, a short-term Capital Gain tax is deducted as per the individual’s tax slab. This tax Deduction is same as that of a savings account.
How to Invest in Liquid Funds Online?
Open Free Investment Account for Lifetime at Fincash.com
Complete your Registration and KYC Process
Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!
Due to the lack of awareness about liquid funds, people don’t invest in them and instead keep huge sums in a savings account. But, it’s never too late to begin something good. So, invest in best liquid funds today!
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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