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

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6 Best Liquid Mutual Funds 2020

Updated on September 23, 2020 , 72713 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

Fund	NAV	Net Assets (Cr)	1 MO (%)	3 MO (%)	6 MO (%)	1 YR (%)	2019 (%)	Debt Yield (YTM)	Mod. Duration	Eff. Maturity
Nippon India Liquid Fund Growth	₹4,919.2 ↑ 0.46	₹26,900	0.3	0.8	2.5	4.9	6.7	3.31%	1M 10D	1M 12D
Aditya Birla Sun Life Liquid Fund Growth	₹324.135 ↑ 0.03	₹39,810	0.3	0.8	2.5	4.9	6.7	3.5%	1M 13D	1M 13D
Axis Liquid Fund Growth	₹2,237.06 ↑ 0.22	₹28,818	0.3	0.8	2	4.9	6.6	3.32%	1M 6D	1M 8D
UTI Liquid Cash Plan Growth	₹3,300.36 ↑ 0.90	₹27,459	0.3	0.8	2	4.8	6.6	3.34%	1M 6D	1M 6D
ICICI Prudential Liquid Fund Growth	₹298.265 ↑ 0.03	₹54,052	0.3	0.8	2.5	4.9	6.6	3.36%	1M 8D	1M 11D
Tata Liquid Fund Growth	₹3,174.43 ↑ 0.31	₹18,934	0.3	0.8	2.6	4.9	6.6	3.36%	1M 10D	1M 10D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 25 Sep 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 7.2% 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 (25 Sep 20)	₹4,919.2 ↑ 0.46 (0.01 %)
Net Assets (Cr)	₹26,900 on 31 Aug 20
Category	Debt - Liquid Fund
AMC	Nippon Life Asset Management Ltd.
Rating	☆☆☆☆
Risk	Low
Expense Ratio	0.21
Sharpe Ratio	0.66
Information Ratio	-1.44
Alpha Ratio	-0.52
Min Investment	100
Min SIP Investment	100
Exit Load	NIL
Yield to Maturity	3.31%
Effective Maturity	1 Month 12 Days
Modified Duration	1 Month 10 Days

Growth of 10,000 investment over the years.

Date	Value
31 Aug 15	₹10,000
31 Aug 16	₹10,797
31 Aug 17	₹11,531
31 Aug 18	₹12,343
31 Aug 19	₹13,259
31 Aug 20	₹13,933

Nippon India Liquid Fund SIP 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 25 Sep 20

Duration	Returns
1 Month	0.3%
3 Month	0.8%
6 Month	2.5%
1 Year	4.9%
3 Year	6.4%
5 Year	6.8%
10 Year
15 Year
Since launch	7.2%

Historical performance (Yearly) on absolute basis

Year	Returns
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

Name	Since	Tenure
Anju Chhajer	1 Oct 13	6.92 Yr.
Kinjal Desai	25 May 18	2.27 Yr.

Data below for Nippon India Liquid Fund as on 31 Aug 20

Asset Allocation

Asset Class	Value
Cash	100%

Debt Sector Allocation

Sector	Value
Cash Equivalent	77.6%
Corporate	21.27%
Government	1.13%

Credit Quality

Rating	Value
AAA	100%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
91 DTB 17092020 Sovereign Bonds \| -	12%	₹3,246 Cr	325,000,000
91 DTB 29102020 Sovereign Bonds \| -	8%	₹2,128 Cr	213,884,100
182 DTB 26112020 Sovereign Bonds \| -	5%	₹1,216 Cr	122,500,000 ↑ 122,500,000
91 DTB 08102020 Sovereign Bonds \| -	4%	₹1,165 Cr	116,850,800 ↓ -4,000,000
91 DTB 22102020 Sovereign Bonds \| -	4%	₹1,040 Cr	104,500,000 ↑ 2,000,000
91 DTB 26112020 Sovereign Bonds \| -	3%	₹844 Cr	85,000,000 ↑ 85,000,000
91 DTB 15102020 Sovereign Bonds \| -	3%	₹797 Cr	80,000,000 ↓ -65,000,000
91 DTB 03092020 Sovereign Bonds \| -	3%	₹695 Cr	69,500,000 ↓ -91,500,000
91 DTB 10092020 Sovereign Bonds \| -	2%	₹580 Cr	58,000,000 ↓ -8,000,000
182 DTB 17092020 Sovereign Bonds \| -	1%	₹250 Cr	25,000,000

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 (25 Sep 20)	₹324.135 ↑ 0.03 (0.01 %)
Net Assets (Cr)	₹39,810 on 31 Aug 20
Category	Debt - Liquid Fund
AMC	Birla Sun Life Asset Management Co Ltd
Rating	☆☆☆☆
Risk	Low
Expense Ratio	0.23
Sharpe Ratio	0.82
Information Ratio	-1.44
Alpha Ratio	-0.45
Min Investment	5,000
Min SIP Investment	1,000
Exit Load	NIL
Yield to Maturity	3.5%
Effective Maturity	1 Month 13 Days
Modified Duration	1 Month 13 Days

Growth of 10,000 investment over the years.

Date	Value
31 Aug 15	₹10,000
31 Aug 16	₹10,802
31 Aug 17	₹11,533
31 Aug 18	₹12,347
31 Aug 19	₹13,261
31 Aug 20	₹13,937

Aditya Birla Sun Life Liquid Fund SIP 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 25 Sep 20

Duration	Returns
1 Month	0.3%
3 Month	0.8%
6 Month	2.5%
1 Year	4.9%
3 Year	6.4%
5 Year	6.8%
10 Year
15 Year
Since launch	7.4%

Historical performance (Yearly) on absolute basis

Year	Returns
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

Name	Since	Tenure
Sunaina Cunha	18 Jun 09	11.21 Yr.
Kaustubh Gupta	15 Jul 11	9.14 Yr.

Data below for Aditya Birla Sun Life Liquid Fund as on 31 Aug 20

Asset Allocation

Asset Class	Value
Cash	100%

Debt Sector Allocation

Sector	Value
Cash Equivalent	76.33%
Corporate	23.55%
Government	0.13%

Credit Quality

Rating	Value
AA	0.03%
AAA	99.97%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
182 DTB 22102020 Sovereign Bonds \| -	5%	₹1,991 Cr	200,000,000 ↑ 200,000,000
182 DTB 19112020 Sovereign Bonds \| -	4%	₹1,504 Cr	151,500,000 ↑ 151,500,000
182 DTB 12112020 Sovereign Bonds \| -	3%	₹1,341 Cr	135,000,000 ↑ 135,000,000
91 DTB 17092020 Sovereign Bonds \| -	3%	₹1,238 Cr	124,000,000
91 DTB 05112020 Sovereign Bonds \| -	2%	₹994 Cr	100,000,000 ↑ 100,000,000
Power Finance Corporation Limited Debentures \| -	2%	₹851 Cr	8,500 ↑ 8,500
Reliance Industries Limited Debentures \| -	2%	₹846 Cr	8,450
182 DTB 24092020 Sovereign Bonds \| -	2%	₹748 Cr	75,000,000 ↑ 50,000,000
91 DTB 15102020 Sovereign Bonds \| -	2%	₹598 Cr	60,000,000
06.99% PN SDL 2020 Sovereign Bonds \| -	1%	₹502 Cr	50,000,000 ↑ 5,000,000

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 7.6% 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 (27 Sep 20)	₹2,237.06 ↑ 0.22 (0.01 %)
Net Assets (Cr)	₹28,818 on 31 Aug 20
Category	Debt - Liquid Fund
AMC	Axis Asset Management Company Limited
Rating	☆☆☆☆
Risk	Low
Expense Ratio	0.16
Sharpe Ratio	0.58
Information Ratio	0
Alpha Ratio	0
Min Investment	500
Min SIP Investment	1,000
Exit Load	NIL
Yield to Maturity	3.32%
Effective Maturity	1 Month 8 Days
Modified Duration	1 Month 6 Days

Growth of 10,000 investment over the years.

Date	Value
31 Aug 15	₹10,000
31 Aug 16	₹10,794
31 Aug 17	₹11,530
31 Aug 18	₹12,349
31 Aug 19	₹13,256
31 Aug 20	₹13,929

Axis Liquid Fund SIP 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 25 Sep 20

Duration	Returns
1 Month	0.3%
3 Month	0.8%
6 Month	2%
1 Year	4.9%
3 Year	6.4%
5 Year	6.8%
10 Year
15 Year
Since launch	7.6%

Historical performance (Yearly) on absolute basis

Year	Returns
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

Name	Since	Tenure
Devang Shah	5 Nov 12	7.82 Yr.
Aditya Pagaria	13 Aug 16	4.05 Yr.

Data below for Axis Liquid Fund as on 31 Aug 20

Asset Allocation

Asset Class	Value
Cash	100%

Debt Sector Allocation

Sector	Value
Cash Equivalent	84.96%
Corporate	12.79%
Government	2.25%

Credit Quality

Rating	Value
AAA	100%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
182 DTB 15102020 Sovereign Bonds \| -	8%	₹2,191 Cr	220,000,000 ↑ 220,000,000
182 DTB 24092020 Sovereign Bonds \| -	5%	₹1,497 Cr	150,000,000
91 DTB 29102020 Sovereign Bonds \| -	5%	₹1,438 Cr	144,500,000 ↑ 69,500,000
91 DTB 05112020 Sovereign Bonds \| -	4%	₹1,178 Cr	118,500,000 ↑ 118,500,000
91 DTB 10092020 Sovereign Bonds \| -	4%	₹1,149 Cr	115,000,000 ↑ 100,000,000
91 DTB 24092020 Sovereign Bonds \| -	3%	₹998 Cr	100,000,000
91 DTB 08102020 Sovereign Bonds \| -	3%	₹997 Cr	100,000,000
91 DTB 26112020 Sovereign Bonds \| -	3%	₹992 Cr	100,000,000 ↑ 100,000,000
91 DTB 22102020 Sovereign Bonds \| -	3%	₹732 Cr	73,500,000 ↑ 22,000,000
182 DTB 12112020 Sovereign Bonds \| -	2%	₹522 Cr	52,500,000 ↑ 52,500,000

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 7.2% 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 (27 Sep 20)	₹3,300.36 ↑ 0.90 (0.03 %)
Net Assets (Cr)	₹27,459 on 31 Aug 20
Category	Debt - Liquid Fund
AMC	UTI Asset Management Company Ltd
Rating	☆☆☆
Risk	Low
Expense Ratio	0.17
Sharpe Ratio	0.05
Information Ratio	-1.96
Alpha Ratio	-0.56
Min Investment	500
Min SIP Investment	1,500
Exit Load	NIL
Yield to Maturity	3.34%
Effective Maturity	1 Month 6 Days
Modified Duration	1 Month 6 Days

Growth of 10,000 investment over the years.

Date	Value
31 Aug 15	₹10,000
31 Aug 16	₹10,794
31 Aug 17	₹11,527
31 Aug 18	₹12,342
31 Aug 19	₹13,248
31 Aug 20	₹13,906

UTI Liquid Cash Plan SIP 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 25 Sep 20

Duration	Returns
1 Month	0.3%
3 Month	0.8%
6 Month	2%
1 Year	4.8%
3 Year	6.4%
5 Year	6.7%
10 Year
15 Year
Since launch	7.2%

Historical performance (Yearly) on absolute basis

Year	Returns
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

Name	Since	Tenure
Amandeep Chopra	14 Dec 06	13.72 Yr.
Amit Sharma	7 Jul 17	3.15 Yr.

Data below for UTI Liquid Cash Plan as on 31 Aug 20

Asset Allocation

Asset Class	Value
Cash	100%

Debt Sector Allocation

Sector	Value
Cash Equivalent	74.35%
Corporate	24.02%
Government	1.63%

Credit Quality

Rating	Value
AAA	100%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
91 DTB 17092020 Sovereign Bonds \| -	12%	₹3,246 Cr	32,500,000,000
91 DTB 05112020 Sovereign Bonds \| -	5%	₹1,491 Cr	15,000,000,000 ↑ 15,000,000,000
91 DTB 22102020 Sovereign Bonds \| -	5%	₹1,344 Cr	13,500,000,000 ↑ 250,000,000
182 DTB 08102020 Sovereign Bonds \| -	4%	₹997 Cr	10,000,000,000
91 DTB 10092020 Sovereign Bonds \| -	3%	₹759 Cr	7,600,000,000
91 DTB 03092020 Sovereign Bonds \| -	3%	₹735 Cr	7,350,000,000
182 DTB 17092020 Sovereign Bonds \| -	3%	₹719 Cr	7,200,000,000 ↑ 4,000,000,000
91 DTB 15102020 Sovereign Bonds \| -	3%	₹712 Cr	7,150,000,000 ↑ 2,150,000,000
182 DTB 26112020 Sovereign Bonds \| -	3%	₹695 Cr	7,000,000,000 ↑ 7,000,000,000
91 DTB 24092020 Sovereign Bonds \| -	2%	₹499 Cr	5,000,000,000

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 7.6% 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 (25 Sep 20)	₹298.265 ↑ 0.03 (0.01 %)
Net Assets (Cr)	₹54,052 on 31 Aug 20
Category	Debt - Liquid Fund
AMC	ICICI Prudential Asset Management Company Limited
Rating	☆☆☆☆
Risk	Low
Expense Ratio	0.22
Sharpe Ratio	0.54
Information Ratio	-1.89
Alpha Ratio	-0.57
Min Investment	500
Min SIP Investment	99
Exit Load	NIL
Yield to Maturity	3.36%
Effective Maturity	1 Month 11 Days
Modified Duration	1 Month 8 Days

Growth of 10,000 investment over the years.

Date	Value
31 Aug 15	₹10,000
31 Aug 16	₹10,797
31 Aug 17	₹11,528
31 Aug 18	₹12,338
31 Aug 19	₹13,238
31 Aug 20	₹13,908

ICICI Prudential Liquid Fund SIP 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 25 Sep 20

Duration	Returns
1 Month	0.3%
3 Month	0.8%
6 Month	2.5%
1 Year	4.9%
3 Year	6.4%
5 Year	6.8%
10 Year
15 Year
Since launch	7.6%

Historical performance (Yearly) on absolute basis

Year	Returns
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

Name	Since	Tenure
Rahul Goswami	27 Sep 12	7.93 Yr.
Rohan Maru	19 Sep 13	6.95 Yr.

Data below for ICICI Prudential Liquid Fund as on 31 Aug 20

Asset Allocation

Asset Class	Value
Cash	100%

Debt Sector Allocation

Sector	Value
Cash Equivalent	86.92%
Corporate	12.98%
Government	0.09%

Credit Quality

Rating	Value
AAA	100%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
91 DTB 12112020 Sovereign Bonds \| -	8%	₹4,471 Cr	450,000,000 ↑ 450,000,000
91 DTB 24092020 Sovereign Bonds \| -	5%	₹2,736 Cr	274,123,400
91 DTB 22102020 Sovereign Bonds \| -	4%	₹2,339 Cr	235,000,000
91 DTB 15102020 Sovereign Bonds \| -	4%	₹1,967 Cr	197,500,000
91 DTB 05112020 Sovereign Bonds \| -	3%	₹1,790 Cr	180,000,000 ↑ 180,000,000
91 DTB 10092020 Sovereign Bonds \| -	3%	₹1,537 Cr	153,837,800
182 DTB 06112020 Sovereign Bonds \| -	3%	₹1,491 Cr	150,000,000 ↑ 150,000,000
91 DTB 01102020 Sovereign Bonds \| -	3%	₹1,446 Cr	145,000,000
182 DTB 29102020 Sovereign Bonds \| -	2%	₹1,244 Cr	125,000,000 ↑ 125,000,000
91 DTB 29102020 Sovereign Bonds \| -	2%	₹1,094 Cr	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 (25 Sep 20)	₹3,174.43 ↑ 0.31 (0.01 %)
Net Assets (Cr)	₹18,934 on 31 Aug 20
Category	Debt - Liquid Fund
AMC	Tata Asset Management Limited
Rating	☆☆☆☆
Risk	Low
Expense Ratio	0.34
Sharpe Ratio	0.5
Information Ratio	-1.32
Alpha Ratio	-0.57
Min Investment	5,000
Min SIP Investment	500
Exit Load	NIL
Yield to Maturity	3.36%
Effective Maturity	1 Month 10 Days
Modified Duration	1 Month 10 Days

Growth of 10,000 investment over the years.

Date	Value
31 Aug 15	₹10,000
31 Aug 16	₹10,795
31 Aug 17	₹11,529
31 Aug 18	₹12,343
31 Aug 19	₹13,245
31 Aug 20	₹13,919

Tata Liquid Fund SIP 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 25 Sep 20

Duration	Returns
1 Month	0.3%
3 Month	0.8%
6 Month	2.6%
1 Year	4.9%
3 Year	6.4%
5 Year	6.8%
10 Year
15 Year
Since launch	7.5%

Historical performance (Yearly) on absolute basis

Year	Returns
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

Name	Since	Tenure
Amit Somani	16 Oct 13	6.88 Yr.
Abhishek Sonthalia	6 Feb 20	0.57 Yr.

Data below for Tata Liquid Fund as on 31 Aug 20

Asset Allocation

Asset Class	Value
Cash	100%

Debt Sector Allocation

Sector	Value
Cash Equivalent	79.82%
Corporate	18.73%
Government	1.45%

Credit Quality

Rating	Value
AAA	100%

Top Securities Holdings / Portfolio

Name	Holding	Value	Quantity
91 DTB 01102020 Sovereign Bonds \| -	14%	₹2,583 Cr	259,000,000 ↑ 12,000,000
91 DTB 24092020 Sovereign Bonds \| -	8%	₹1,487 Cr	149,000,000 ↑ 1,000,000
364 DTB 01102020 Sovereign Bonds \| -	3%	₹623 Cr	62,500,000
182 DTB 19112020 Sovereign Bonds \| -	3%	₹571 Cr	57,500,000 ↑ 57,500,000
364 DTB 10092020 Sovereign Bonds \| -	3%	₹500 Cr	50,000,000
91 DTB 05112020 Sovereign Bonds \| -	3%	₹497 Cr	50,000,000 ↑ 50,000,000
182 DTB 12112020 Sovereign Bonds \| -	3%	₹497 Cr	50,000,000 ↑ 50,000,000
364 DTB 17092020 Sovereign Bonds \| -	2%	₹449 Cr	45,000,000
182 DTB 24092020 Sovereign Bonds \| -	2%	₹449 Cr	45,000,000 ↓ -3,000,000
91 DTB 22102020 Sovereign Bonds \| -	2%	₹433 Cr	43,500,000 ↑ 10,000,000

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?

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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.