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6 Best Liquid Mutual Funds 2020
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 ₹4,946.87
↑ 0.36 ₹26,077 0.3 0.8 1.7 4.5 6.7 3.24% 1M 3D 1M 5D Aditya Birla Sun Life Liquid Fund Growth ₹325.96
↑ 0.02 ₹34,021 0.3 0.8 1.7 4.5 6.7 3.37% 1M 2D 1M 2D Axis Liquid Fund Growth ₹2,249.45
↑ 0.16 ₹26,509 0.3 0.8 1.7 4.5 6.6 3.23% 1M 6D 1M 7D UTI Liquid Cash Plan Growth ₹3,318.84
↑ 0.48 ₹26,218 0.3 0.8 1.7 4.4 6.6 3.24% 1M 6D 1M 7D ICICI Prudential Liquid Fund Growth ₹299.976
↑ 0.02 ₹40,247 0.3 0.8 1.7 4.5 6.6 3.3% 1M 2D 1M 4D Tata Liquid Fund Growth ₹3,192.69
↑ 0.25 ₹15,958 0.3 0.8 1.7 4.5 6.6 3.33% 1M 6D 1M 6D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 27 Nov 20 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.
(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 Below is the key information for Nippon India 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 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 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 (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 (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 Below is the key information for Tata Liquid Fund Returns up to 1 year are on 1. Nippon India Liquid Fund
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% . Nippon India Liquid Fund
Growth Launch Date 9 Dec 03 NAV (27 Nov 20) ₹4,946.87 ↑ 0.36 (0.01 %) Net Assets (Cr) ₹26,077 on 31 Oct 20 Category Debt - Liquid Fund AMC Nippon Life Asset Management Ltd. Rating ☆☆☆☆ Risk Low Expense Ratio 0.21 Sharpe Ratio -0.1 Information Ratio -1.74 Alpha Ratio -0.6 Min Investment 100 Min SIP Investment 100 Exit Load NIL Yield to Maturity 3.24% Effective Maturity 1 Month 5 Days Modified Duration 1 Month 3 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 15 ₹10,000 31 Oct 16 ₹10,785 31 Oct 17 ₹11,508 31 Oct 18 ₹12,339 31 Oct 19 ₹13,220 31 Oct 20 ₹13,833 Returns for Nippon India Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Nov 20 Duration Returns 1 Month 0.3% 3 Month 0.8% 6 Month 1.7% 1 Year 4.5% 3 Year 6.2% 5 Year 6.6% 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 7.09 Yr. Kinjal Desai 25 May 18 2.44 Yr. Data below for Nippon India Liquid Fund as on 31 Oct 20
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 70.65% Corporate 26.39% Government 2.97% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 91 DTB 10122020
Sovereign Bonds | -8% ₹1,993 Cr 200,000,000 182 DTB 06112020
Sovereign Bonds | -6% ₹1,694 Cr 169,500,000
↓ -75,000,000 91 DTB 21012021
Sovereign Bonds | -6% ₹1,548 Cr 155,932,700
↑ 155,932,700 7.80% GOI Floating Rate Bonds 2020
Sovereign Bonds | -6% ₹1,456 Cr 145,500,000
↑ 10,500,000 182 DTB 26112020
Sovereign Bonds | -5% ₹1,222 Cr 122,500,000 91 DTB 26112020
Sovereign Bonds | -3% ₹848 Cr 85,000,000 91 DTB 03122020
Sovereign Bonds | -3% ₹673 Cr 67,500,000 91 DTB 24122020
Sovereign Bonds | -2% ₹533 Cr 53,500,000
↓ -4,000,000 182 DTB 03122020
Sovereign Bonds | -2% ₹514 Cr 51,500,000 182 DTB 17122020
Sovereign Bonds | -2% ₹498 Cr 50,000,000 2. Aditya Birla Sun Life Liquid Fund
CAGR/Annualized return of 7.3% since its launch. Ranked 15 in Liquid Fund category. Return for 2019 was 6.7% , 2018 was 7.4% and 2017 was 6.7% . Aditya Birla Sun Life Liquid Fund
Growth Launch Date 30 Mar 04 NAV (27 Nov 20) ₹325.96 ↑ 0.02 (0.01 %) Net Assets (Cr) ₹34,021 on 31 Oct 20 Category Debt - Liquid Fund AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆ Risk Low Expense Ratio 0.23 Sharpe Ratio 0.11 Information Ratio -1.74 Alpha Ratio -0.58 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 3.37% Effective Maturity 1 Month 2 Days Modified Duration 1 Month 2 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 15 ₹10,000 31 Oct 16 ₹10,790 31 Oct 17 ₹11,511 31 Oct 18 ₹12,341 31 Oct 19 ₹13,220 31 Oct 20 ₹13,838 Returns for Aditya Birla Sun Life Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Nov 20 Duration Returns 1 Month 0.3% 3 Month 0.8% 6 Month 1.7% 1 Year 4.5% 3 Year 6.2% 5 Year 6.6% 10 Year 15 Year Since launch 7.3% 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 11.38 Yr. Kaustubh Gupta 15 Jul 11 9.31 Yr. Data below for Aditya Birla Sun Life Liquid Fund as on 31 Oct 20
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 67.09% Corporate 30.56% Government 2.35% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 182 DTB 19112020
Sovereign Bonds | -5% ₹1,548 Cr 155,000,000 8.12% Govt Stock 2020
Sovereign Bonds | -4% ₹1,455 Cr 144,696,000
↑ 32,696,000 182 DTB 12112020
Sovereign Bonds | -4% ₹1,349 Cr 135,000,000 182 DTB 03122020
Sovereign Bonds | -4% ₹1,197 Cr 120,000,000 91 DTB 05112020
Sovereign Bonds | -3% ₹1,000 Cr 100,000,000 182 DTB 06112020
Sovereign Bonds | -3% ₹1,000 Cr 100,000,000 182 DTB 17122020
Sovereign Bonds | -2% ₹812 Cr 81,500,000 8.03% Odisha SDL 2020
Sovereign Bonds | -1% ₹421 Cr 42,000,000 Housing Development Finance Corporation Limited
Debentures | -1% ₹395 Cr 3,925
↑ 3,925 Housing Development Finance Corporation Limited
Debentures | -1% ₹285 Cr 285
↑ 225 3. Axis Liquid Fund
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% . Axis Liquid Fund
Growth Launch Date 9 Oct 09 NAV (27 Nov 20) ₹2,249.45 ↑ 0.16 (0.01 %) Net Assets (Cr) ₹26,509 on 31 Oct 20 Category Debt - Liquid Fund AMC Axis Asset Management Company Limited Rating ☆☆☆☆ Risk Low Expense Ratio 0.16 Sharpe Ratio 0.02 Information Ratio 0 Alpha Ratio 0 Min Investment 500 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 3.23% Effective Maturity 1 Month 7 Days Modified Duration 1 Month 6 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 15 ₹10,000 31 Oct 16 ₹10,779 31 Oct 17 ₹11,507 31 Oct 18 ₹12,342 31 Oct 19 ₹13,212 31 Oct 20 ₹13,828 Returns for Axis Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Nov 20 Duration Returns 1 Month 0.3% 3 Month 0.8% 6 Month 1.7% 1 Year 4.5% 3 Year 6.2% 5 Year 6.6% 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 7.99 Yr. Aditya Pagaria 13 Aug 16 4.22 Yr. Data below for Axis Liquid Fund as on 31 Oct 20
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 89.9% Corporate 9.16% Government 0.94% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 364 DTB 26112020
Sovereign Bonds | -7% ₹1,866 Cr 186,978,700
↑ 186,978,700 182 DTB 26112020
Sovereign Bonds | -6% ₹1,696 Cr 170,000,000
↑ 20,000,000 91 DTB 10122020
Sovereign Bonds | -5% ₹1,420 Cr 142,500,000
↑ 67,500,000 91 DTB 03122020
Sovereign Bonds | -5% ₹1,346 Cr 135,000,000
↑ 5,000,000 91 DTB 7012021
Sovereign Bonds | -5% ₹1,287 Cr 129,500,000
↑ 129,500,000 91 DTB 05112020
Sovereign Bonds | -4% ₹1,110 Cr 111,000,000
↓ -7,500,000 91 DTB 26112020
Sovereign Bonds | -4% ₹1,003 Cr 100,500,000
↓ -2,500,000 91 DTB 17122020
Sovereign Bonds | -4% ₹996 Cr 100,000,000
↑ 100,000,000 182 DTB 19112020
Sovereign Bonds | -3% ₹756 Cr 75,750,000
↑ 17,250,000 91 DTB 12112020
Sovereign Bonds | -2% ₹495 Cr 49,500,000
↓ -2,500,000 4. UTI Liquid Cash Plan
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% . UTI Liquid Cash Plan
Growth Launch Date 11 Dec 03 NAV (28 Nov 20) ₹3,318.84 ↑ 0.48 (0.01 %) Net Assets (Cr) ₹26,218 on 31 Oct 20 Category Debt - Liquid Fund AMC UTI Asset Management Company Ltd Rating ☆☆☆ Risk Low Expense Ratio 0.17 Sharpe Ratio -0.67 Information Ratio -2.27 Alpha Ratio -0.62 Min Investment 500 Min SIP Investment 1,500 Exit Load NIL Yield to Maturity 3.24% Effective Maturity 1 Month 7 Days Modified Duration 1 Month 6 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 15 ₹10,000 31 Oct 16 ₹10,781 31 Oct 17 ₹11,504 31 Oct 18 ₹12,337 31 Oct 19 ₹13,206 31 Oct 20 ₹13,806 Returns for UTI Liquid Cash Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Nov 20 Duration Returns 1 Month 0.3% 3 Month 0.8% 6 Month 1.7% 1 Year 4.4% 3 Year 6.2% 5 Year 6.6% 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 13.89 Yr. Amit Sharma 7 Jul 17 3.32 Yr. Data below for UTI Liquid Cash Plan as on 31 Oct 20
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 60.77% Corporate 36.37% Government 2.86% Credit Quality
Rating Value A 0.19% AAA 99.81% Top Securities Holdings / Portfolio
Name Holding Value Quantity 91 DTB 03122020
Sovereign Bonds | -10% ₹2,593 Cr 26,002,900,000 91 DTB 17122020
Sovereign Bonds | -8% ₹2,137 Cr 21,450,000,000
↑ 3,950,000,000 91 DTB 05112020
Sovereign Bonds | -6% ₹1,499 Cr 15,000,000,000 91 DTB 24122020
Sovereign Bonds | -6% ₹1,493 Cr 15,000,000,000 182 DTB 17122020
Sovereign Bonds | -5% ₹1,195 Cr 12,000,000,000 182 DTB 26112020
Sovereign Bonds | -3% ₹698 Cr 7,000,000,000 182 DTB 24122020
Sovereign Bonds | -2% ₹597 Cr 6,000,000,000
↑ 6,000,000,000 91 DTB 21012021
Sovereign Bonds | -2% ₹496 Cr 5,000,000,000
↑ 5,000,000,000 364 DTB 26112020
Sovereign Bonds | -1% ₹249 Cr 2,500,000,000
↑ 2,500,000,000 91 DTB 10122020
Sovereign Bonds | -1% ₹249 Cr 2,500,000,000
↑ 2,500,000,000 5. ICICI Prudential Liquid Fund
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% . ICICI Prudential Liquid Fund
Growth Launch Date 17 Nov 05 NAV (27 Nov 20) ₹299.976 ↑ 0.02 (0.01 %) Net Assets (Cr) ₹40,247 on 31 Oct 20 Category Debt - Liquid Fund AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Low Expense Ratio 0.26 Sharpe Ratio -0.05 Information Ratio -2.15 Alpha Ratio -0.66 Min Investment 500 Min SIP Investment 99 Exit Load NIL Yield to Maturity 3.3% Effective Maturity 1 Month 4 Days Modified Duration 1 Month 2 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 15 ₹10,000 31 Oct 16 ₹10,785 31 Oct 17 ₹11,505 31 Oct 18 ₹12,329 31 Oct 19 ₹13,196 31 Oct 20 ₹13,809 Returns for ICICI Prudential Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Nov 20 Duration Returns 1 Month 0.3% 3 Month 0.8% 6 Month 1.7% 1 Year 4.5% 3 Year 6.2% 5 Year 6.6% 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 8.1 Yr. Rohan Maru 19 Sep 13 7.12 Yr. Data below for ICICI Prudential Liquid Fund as on 31 Oct 20
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 80.72% Corporate 18.41% Government 0.87% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 91 DTB 12112020
Sovereign Bonds | -11% ₹4,496 Cr 450,000,000 182 DTB 06112020
Sovereign Bonds | -6% ₹2,284 Cr 228,500,000
↓ -82,000,000 91 DTB 14012021
Sovereign Bonds | -6% ₹2,236 Cr 225,000,000
↑ 225,000,000 91 DTB 24122020
Sovereign Bonds | -5% ₹2,195 Cr 220,500,000
↑ 500,000 91 DTB 05112020
Sovereign Bonds | -4% ₹1,430 Cr 143,000,000
↓ -37,000,000 91 DTB 21012021
Sovereign Bonds | -4% ₹1,415 Cr 142,500,000
↑ 142,500,000 91 DTB 03122020
Sovereign Bonds | -3% ₹1,407 Cr 141,079,700
↑ 5,000,000 182 DTB 12112020
Sovereign Bonds | -3% ₹1,094 Cr 109,500,000 91 DTB 7012021
Sovereign Bonds | -2% ₹800 Cr 80,500,000
↑ 80,500,000 91 DTB 17122020
Sovereign Bonds | -2% ₹772 Cr 77,500,000 6. Tata Liquid Fund
CAGR/Annualized return of 7.4% since its launch. Ranked 18 in Liquid Fund category. Return for 2019 was 6.6% , 2018 was 7.4% and 2017 was 6.7% . Tata Liquid Fund
Growth Launch Date 1 Sep 04 NAV (27 Nov 20) ₹3,192.69 ↑ 0.25 (0.01 %) Net Assets (Cr) ₹15,958 on 31 Oct 20 Category Debt - Liquid Fund AMC Tata Asset Management Limited Rating ☆☆☆☆ Risk Low Expense Ratio 0.34 Sharpe Ratio 0.08 Information Ratio -1.57 Alpha Ratio -0.63 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 3.33% Effective Maturity 1 Month 6 Days Modified Duration 1 Month 6 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 15 ₹10,000 31 Oct 16 ₹10,781 31 Oct 17 ₹11,505 31 Oct 18 ₹12,336 31 Oct 19 ₹13,200 31 Oct 20 ₹13,817 Returns for Tata Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Nov 20 Duration Returns 1 Month 0.3% 3 Month 0.8% 6 Month 1.7% 1 Year 4.5% 3 Year 6.2% 5 Year 6.6% 10 Year 15 Year Since launch 7.4% 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 7.05 Yr. Abhishek Sonthalia 6 Feb 20 0.74 Yr. Data below for Tata Liquid Fund as on 31 Oct 20
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 67.61% Corporate 23.79% Government 8.6% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.00% Govt Stock 2021
Sovereign Bonds | -8% ₹1,240 Cr 123,000,000
↑ 123,000,000 91 DTB 17122020
Sovereign Bonds | -5% ₹872 Cr 87,500,000
↑ 87,500,000 182 DTB 24122020
Sovereign Bonds | -5% ₹846 Cr 85,000,000
↑ 35,000,000 8.12% Govt Stock 2020
Sovereign Bonds | -4% ₹643 Cr 64,000,000
↑ 500,000 182 DTB 03122020
Sovereign Bonds | -3% ₹539 Cr 54,000,000
↑ 4,000,000 182 DTB 12112020
Sovereign Bonds | -3% ₹500 Cr 50,000,000 91 DTB 7012021
Sovereign Bonds | -2% ₹348 Cr 35,000,000
↑ 35,000,000 91 DTB 14012021
Sovereign Bonds | -2% ₹306 Cr 30,836,400
↑ 30,836,400 182 DTB 19112020
Sovereign Bonds | -2% ₹280 Cr 28,000,000 182 DTB 06112020
Sovereign Bonds | -2% ₹255 Cr 25,500,000
↓ -24,500,000
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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