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6 Best Performing Liquid Mutual Funds to Invest in 2024 | Fincash.com

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6 Best Liquid Mutual Funds 2024

Updated on June 13, 2024 , 142623 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 24 - 25

FundNAVNet Assets (Cr)1 MO (%)3 MO (%)6 MO (%)1 YR (%)2023 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Axis Liquid Fund Growth ₹2,703.87
↑ 0.52
₹32,6480.61.93.87.37.17.22%1M 8D1M 8D
Aditya Birla Sun Life Liquid Fund Growth ₹391.423
↑ 0.07
₹46,3600.61.93.77.37.17.88%2M 8D2M 8D
UTI Liquid Cash Plan Growth ₹3,985.04
↑ 0.72
₹23,3300.61.93.77.377.23%1M 12D1M 12D
ICICI Prudential Liquid Fund Growth ₹359.678
↑ 0.07
₹43,4730.61.93.77.377.3%1M 10D1M 14D
Invesco India Liquid Fund Growth ₹3,338.33
↑ 0.62
₹10,0530.61.83.77.377.17%1M 13D1M 13D
IDFC Cash Fund Growth ₹2,936.58
↑ 0.56
₹15,9480.61.83.77.277.21%1M 8D1M 8D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 14 Jun 24
*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 2023 was 7.1% , 2022 was 4.9% and 2021 was 3.3% .

Below is the key information for Axis Liquid Fund

Axis Liquid Fund
Growth
Launch Date 9 Oct 09
NAV (14 Jun 24) ₹2,703.87 ↑ 0.52   (0.02 %)
Net Assets (Cr) ₹32,648 on 30 Apr 24
Category Debt - Liquid Fund
AMC Axis Asset Management Company Limited
Rating
Risk Low
Expense Ratio 0.22
Sharpe Ratio 1.83
Information Ratio 0
Alpha Ratio 0
Min Investment 500
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.22%
Effective Maturity 1 Month 8 Days
Modified Duration 1 Month 8 Days

Growth of 10,000 investment over the years.

DateValue
31 May 19₹10,000
31 May 20₹10,589
31 May 21₹10,932
31 May 22₹11,313
31 May 23₹12,025
31 May 24₹12,904

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 14 Jun 24

DurationReturns
1 Month 0.6%
3 Month 1.9%
6 Month 3.8%
1 Year 7.3%
3 Year 5.7%
5 Year 5.2%
10 Year
15 Year
Since launch 7%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Devang Shah5 Nov 1211.49 Yr.
Aditya Pagaria13 Aug 167.72 Yr.
Sachin Jain3 Jul 230.83 Yr.

Data below for Axis Liquid Fund as on 30 Apr 24

Asset Allocation
Asset ClassValue
Cash97.71%
Debt2.08%
Other0.21%
Debt Sector Allocation
SectorValue
Cash Equivalent59.17%
Corporate24.26%
Government16.36%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Punjab National Bank
Certificate of Deposit | -
4%₹1,387 Cr28,000
↑ 28,000
India (Republic of)
- | -
4%₹1,344 Cr135,500,000
↑ 3,500,000
Clearing Corporation Of India Ltd
CBLO/Reverse Repo | -
3%₹1,127 Cr
Small Industries Development Bank Of India
Certificate of Deposit | -
3%₹1,125 Cr22,600
Indusind Bank Ltd.
Debentures | -
3%₹1,117 Cr22,500
India (Republic of)
- | -
3%₹1,048 Cr106,500,000
↑ 106,500,000
91 DTB 23052024
Sovereign Bonds | -
3%₹1,019 Cr102,000,000
Indian Bank
Certificate of Deposit | -
2%₹871 Cr17,500
Canara Bank
Domestic Bonds | -
2%₹798 Cr16,000
Punjab National Bank
Domestic Bonds | -
2%₹796 Cr16,000

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% since its launch.  Ranked 15 in Liquid Fund category.  Return for 2023 was 7.1% , 2022 was 4.8% and 2021 was 3.3% .

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 (14 Jun 24) ₹391.423 ↑ 0.07   (0.02 %)
Net Assets (Cr) ₹46,360 on 15 May 24
Category Debt - Liquid Fund
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Low
Expense Ratio 0.33
Sharpe Ratio 1.47
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 7.88%
Effective Maturity 2 Months 8 Days
Modified Duration 2 Months 8 Days

Growth of 10,000 investment over the years.

DateValue
31 May 19₹10,000
31 May 20₹10,591
31 May 21₹10,939
31 May 22₹11,316
31 May 23₹12,028
31 May 24₹12,900

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 14 Jun 24

DurationReturns
1 Month 0.6%
3 Month 1.9%
6 Month 3.7%
1 Year 7.3%
3 Year 5.7%
5 Year 5.2%
10 Year
15 Year
Since launch 7%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Sunaina Cunha15 Jul 1112.81 Yr.
Kaustubh Gupta15 Jul 1112.81 Yr.
Sanjay Pawar1 Jul 221.84 Yr.
Dhaval Joshi21 Nov 221.44 Yr.

Data below for Aditya Birla Sun Life Liquid Fund as on 15 May 24

Asset Allocation
Asset ClassValue
Cash98.51%
Debt1.27%
Other0.22%
Debt Sector Allocation
SectorValue
Cash Equivalent81.44%
Government9.44%
Corporate8.9%
Credit Quality
RatingValue
AA0.46%
AAA99.54%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Reverse Repo
CBLO/Reverse Repo | -
7%₹3,290 Cr
6.69% Govt Stock 2024
Sovereign Bonds | -
6%₹2,693 Cr269,500,000
National Bank for Agriculture and Rural Development
Commercial Paper | -
4%₹1,738 Cr35,000
National Bank for Agriculture and Rural Development
Commercial Paper | -
3%₹1,180 Cr24,000
↑ 24,000
India (Republic of)
- | -
2%₹1,042 Cr105,000,000
India (Republic of)
- | -
2%₹995 Cr100,000,000
India (Republic of)
- | -
2%₹946 Cr95,596,200
Sikka Ports & Terminals Ltd
Commercial Paper | -
2%₹799 Cr16,000
Indusind Bank Ltd.
Debentures | -
2%₹794 Cr16,000
HDFC Bank Limited
Certificate of Deposit | -
2%₹698 Cr14,000

3. 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 6.9% since its launch.  Ranked 32 in Liquid Fund category.  Return for 2023 was 7% , 2022 was 4.8% and 2021 was 3.3% .

Below is the key information for UTI Liquid Cash Plan

UTI Liquid Cash Plan
Growth
Launch Date 11 Dec 03
NAV (14 Jun 24) ₹3,985.04 ↑ 0.72   (0.02 %)
Net Assets (Cr) ₹23,330 on 30 Apr 24
Category Debt - Liquid Fund
AMC UTI Asset Management Company Ltd
Rating
Risk Low
Expense Ratio 0.23
Sharpe Ratio 1.47
Information Ratio 0
Alpha Ratio 0
Min Investment 500
Min SIP Investment 1,500
Exit Load NIL
Yield to Maturity 7.23%
Effective Maturity 1 Month 12 Days
Modified Duration 1 Month 12 Days

Growth of 10,000 investment over the years.

DateValue
31 May 19₹10,000
31 May 20₹10,577
31 May 21₹10,920
31 May 22₹11,299
31 May 23₹12,006
31 May 24₹12,876

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 14 Jun 24

DurationReturns
1 Month 0.6%
3 Month 1.9%
6 Month 3.7%
1 Year 7.3%
3 Year 5.7%
5 Year 5.2%
10 Year
15 Year
Since launch 6.9%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Amit Sharma7 Jul 176.82 Yr.

Data below for UTI Liquid Cash Plan as on 30 Apr 24

Asset Allocation
Asset ClassValue
Cash95.54%
Debt4.23%
Other0.23%
Debt Sector Allocation
SectorValue
Cash Equivalent69.86%
Corporate17.41%
Government12.5%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
6.69% Govt Stock 2024
Sovereign Bonds | -
7%₹1,829 Cr18,300,000,000
India (Republic of)
- | -
6%₹1,560 Cr15,700,000,000
↓ -8,050,000,000
India (Republic of)
- | -
4%₹1,081 Cr11,000,000,000
↑ 11,000,000,000
Small Industries Development Bank of India
Debentures | -
4%₹996 Cr10,000,000,000
Small Industries Development Bank Of India
Commercial Paper | -
4%₹988 Cr10,000,000,000
National Bank for Agriculture and Rural Development
Commercial Paper | -
3%₹747 Cr7,500,000,000
Canara Bank
Certificate of Deposit | -
3%₹696 Cr7,000,000,000
Net Current Assets
Net Current Assets | -
2%₹569 Cr
HDFC Bank Limited
Certificate of Deposit | -
2%₹498 Cr5,000,000,000
Kotak Securities Ltd
Commercial Paper | -
2%₹498 Cr5,000,000,000

4. 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 7.1% since its launch.  Ranked 20 in Liquid Fund category.  Return for 2023 was 7% , 2022 was 4.8% and 2021 was 3.2% .

Below is the key information for ICICI Prudential Liquid Fund

ICICI Prudential Liquid Fund
Growth
Launch Date 17 Nov 05
NAV (14 Jun 24) ₹359.678 ↑ 0.07   (0.02 %)
Net Assets (Cr) ₹43,473 on 30 Apr 24
Category Debt - Liquid Fund
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Low
Expense Ratio 0.29
Sharpe Ratio 1.29
Information Ratio -3.65
Alpha Ratio -0.24
Min Investment 500
Min SIP Investment 99
Exit Load NIL
Yield to Maturity 7.3%
Effective Maturity 1 Month 14 Days
Modified Duration 1 Month 10 Days

Growth of 10,000 investment over the years.

DateValue
31 May 19₹10,000
31 May 20₹10,585
31 May 21₹10,928
31 May 22₹11,300
31 May 23₹12,000
31 May 24₹12,869

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 ₹197,169.
Net Profit of ₹17,169
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 14 Jun 24

DurationReturns
1 Month 0.6%
3 Month 1.9%
6 Month 3.7%
1 Year 7.3%
3 Year 5.7%
5 Year 5.2%
10 Year
15 Year
Since launch 7.1%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Rohan Maru19 Sep 1310.62 Yr.
Nikhil Kabra1 Dec 230.42 Yr.
Darshil Dedhia12 Jun 230.89 Yr.

Data below for ICICI Prudential Liquid Fund as on 30 Apr 24

Asset Allocation
Asset ClassValue
Cash97.79%
Debt1.99%
Other0.21%
Debt Sector Allocation
SectorValue
Cash Equivalent63.74%
Corporate19.29%
Government16.75%
Credit Quality
RatingValue
AA0.16%
AAA99.84%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Treps
CBLO/Reverse Repo | -
5%₹2,514 Cr
India (Republic of)
- | -
5%₹2,490 Cr250,000,000
India (Republic of)
- | -
5%₹2,473 Cr250,000,000
India (Republic of)
- | -
4%₹2,045 Cr205,535,500
Canara Bank
Certificate of Deposit | -
3%₹1,646 Cr33,000
Small Industries Development Bank Of India
Commercial Paper | -
3%₹1,481 Cr30,000
Small Industries Development Bank of India
Commercial Paper | -
3%₹1,241 Cr25,000
National Bank For Agriculture And Rural Development
Commercial Paper | -
2%₹998 Cr20,000
Bank Of Baroda
Certificate of Deposit | -
2%₹998 Cr20,000
Punjab National Bank
Certificate of Deposit | -
2%₹998 Cr20,000

5. Invesco India Liquid Fund

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 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% .

Below is the key information for Invesco India Liquid Fund

Invesco India Liquid Fund
Growth
Launch Date 17 Nov 06
NAV (14 Jun 24) ₹3,338.33 ↑ 0.62   (0.02 %)
Net Assets (Cr) ₹10,053 on 30 Apr 24
Category Debt - Liquid Fund
AMC Invesco Asset Management (India) Private Ltd
Rating
Risk Low
Expense Ratio 0.22
Sharpe Ratio 1.63
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 7.17%
Effective Maturity 1 Month 13 Days
Modified Duration 1 Month 13 Days

Growth of 10,000 investment over the years.

DateValue
31 May 19₹10,000
31 May 20₹10,560
31 May 21₹10,898
31 May 22₹11,275
31 May 23₹11,975
31 May 24₹12,844

Invesco 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 Invesco 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 14 Jun 24

DurationReturns
1 Month 0.6%
3 Month 1.8%
6 Month 3.7%
1 Year 7.3%
3 Year 5.7%
5 Year 5.1%
10 Year
15 Year
Since launch 7.1%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Krishna Cheemalapati25 Apr 1113.03 Yr.
Prateek Jain14 Feb 222.21 Yr.

Data below for Invesco India Liquid Fund as on 30 Apr 24

Asset Allocation
Asset ClassValue
Cash99.81%
Other0.19%
Debt Sector Allocation
SectorValue
Cash Equivalent76.71%
Corporate15.44%
Government7.66%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Axis Bank Ltd.
Debentures | -
3%₹298 Cr30,000,000
India (Republic of)
- | -
3%₹298 Cr30,000,000
191 DTB 19072024
Sovereign Bonds | -
3%₹247 Cr25,000,000
Axis Bank Limited**
Certificate of Deposit | -
3%₹247 Cr25,000,000
NTPC Ltd.
Commercial Paper | -
3%₹246 Cr25,000,000
Punjab National Bank
Certificate of Deposit | -
3%₹246 Cr25,000,000
↑ 25,000,000
Small Industries Development Bank of India
Commercial Paper | -
3%₹246 Cr25,000,000
↑ 25,000,000
182 DTB 16052024
Sovereign Bonds | -
2%₹225 Cr22,500,000
↓ -5,000,000
91 DTB 23052024
Sovereign Bonds | -
2%₹220 Cr22,000,000
Kotak Securities Ltd
Commercial Paper | -
2%₹199 Cr20,000,000

6. IDFC Cash Fund

To generate optimal returns with high liquidity by investing in high quality money market and debt instruments. However there is no assurance that the investment objective of the scheme will be realized.

IDFC Cash Fund is a Debt - Liquid Fund fund was launched on 4 Jun 08. It is a fund with Low risk and has given a CAGR/Annualized return of 7% since its launch.  Ranked 26 in Liquid Fund category.  Return for 2023 was 7% , 2022 was 4.8% and 2021 was 3.2% .

Below is the key information for IDFC Cash Fund

IDFC Cash Fund
Growth
Launch Date 4 Jun 08
NAV (14 Jun 24) ₹2,936.58 ↑ 0.56   (0.02 %)
Net Assets (Cr) ₹15,948 on 15 May 24
Category Debt - Liquid Fund
AMC IDFC Asset Management Company Limited
Rating
Risk Low
Expense Ratio 0.23
Sharpe Ratio 1.28
Information Ratio 0
Alpha Ratio 0
Min Investment 100
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 7.21%
Effective Maturity 1 Month 8 Days
Modified Duration 1 Month 8 Days

Growth of 10,000 investment over the years.

DateValue
31 May 19₹10,000
31 May 20₹10,553
31 May 21₹10,887
31 May 22₹11,263
31 May 23₹11,961
31 May 24₹12,825

IDFC Cash 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 IDFC Cash Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 14 Jun 24

DurationReturns
1 Month 0.6%
3 Month 1.8%
6 Month 3.7%
1 Year 7.2%
3 Year 5.7%
5 Year 5.1%
10 Year
15 Year
Since launch 7%
Historical performance (Yearly) on absolute basis
YearReturns
2023 7%
2022 4.8%
2021 3.2%
2020 4%
2019 6.3%
2018 7.3%
2017 6.6%
2016 7.6%
2015 8.4%
2014 9.1%
Fund Manager information for IDFC Cash Fund
NameSinceTenure
Harshal Joshi15 Sep 158.63 Yr.
Brijesh Shah1 Dec 212.41 Yr.
Sreejith Balasubramanian31 Aug 230.67 Yr.

Data below for IDFC Cash Fund as on 15 May 24

Asset Allocation
Asset ClassValue
Cash99.82%
Other0.18%
Debt Sector Allocation
SectorValue
Cash Equivalent71.69%
Corporate16.96%
Government11.17%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Triparty Repo
CBLO/Reverse Repo | -
9%₹1,367 Cr
India (Republic of)
- | -
6%₹996 Cr100,000,000
Small Industries Development Bank of India
Debentures | -
6%₹996 Cr100,000,000
Export-Import Bank Of India
Commercial Paper | -
5%₹748 Cr75,000,000
National Bank For Agriculture And Rural Development
Commercial Paper | -
4%₹698 Cr70,000,000
Canara Bank
Domestic Bonds | -
4%₹698 Cr70,000,000
6.69% Govt Stock 2024
Sovereign Bonds | -
3%₹500 Cr50,000,000
Reliance Retail Ventures Limited
Debentures | -
3%₹491 Cr50,000,000
↑ 50,000,000
Canara Bank
Certificate of Deposit | -
3%₹448 Cr45,000,000
Bank Of Baroda
Certificate of Deposit | -
3%₹418 Cr42,000,000

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

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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