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

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6 Best Liquid Mutual Funds 2020

Updated on November 26, 2020 , 78786 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

FundNAVNet Assets (Cr)1 MO (%)3 MO (%)6 MO (%)1 YR (%)2019 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Nippon India Liquid Fund  Growth ₹4,946.87
↑ 0.36
₹26,0770.30.81.74.56.73.24%1M 3D1M 5D
Aditya Birla Sun Life Liquid Fund Growth ₹325.96
↑ 0.02
₹34,0210.30.81.74.56.73.37%1M 2D1M 2D
Axis Liquid Fund Growth ₹2,249.45
↑ 0.16
₹26,5090.30.81.74.56.63.23%1M 6D1M 7D
UTI Liquid Cash Plan Growth ₹3,318.84
↑ 0.48
₹26,2180.30.81.74.46.63.24%1M 6D1M 7D
ICICI Prudential Liquid Fund Growth ₹299.976
↑ 0.02
₹40,2470.30.81.74.56.63.3%1M 2D1M 4D
Tata Liquid Fund Growth ₹3,192.69
↑ 0.25
₹15,9580.30.81.74.56.63.33%1M 6D1M 6D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 27 Nov 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 (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.

DateValue
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

Nippon India Liquid Fund  SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹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 27 Nov 20

DurationReturns
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
YearReturns
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 
NameSinceTenure
Anju Chhajer1 Oct 137.09 Yr.
Kinjal Desai25 May 182.44 Yr.

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

Asset Allocation
Asset ClassValue
Cash100%
Debt Sector Allocation
SectorValue
Cash Equivalent70.65%
Corporate26.39%
Government2.97%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
91 DTB 10122020
Sovereign Bonds | -
8%₹1,993 Cr200,000,000
182 DTB 06112020
Sovereign Bonds | -
6%₹1,694 Cr169,500,000
↓ -75,000,000
91 DTB 21012021
Sovereign Bonds | -
6%₹1,548 Cr155,932,700
↑ 155,932,700
7.80% GOI Floating Rate Bonds 2020
Sovereign Bonds | -
6%₹1,456 Cr145,500,000
↑ 10,500,000
182 DTB 26112020
Sovereign Bonds | -
5%₹1,222 Cr122,500,000
91 DTB 26112020
Sovereign Bonds | -
3%₹848 Cr85,000,000
91 DTB 03122020
Sovereign Bonds | -
3%₹673 Cr67,500,000
91 DTB 24122020
Sovereign Bonds | -
2%₹533 Cr53,500,000
↓ -4,000,000
182 DTB 03122020
Sovereign Bonds | -
2%₹514 Cr51,500,000
182 DTB 17122020
Sovereign Bonds | -
2%₹498 Cr50,000,000

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 7.3% since its launch.  Ranked 15 in Liquid Fund category.  Return for 2019 was 6.7% , 2018 was 7.4% and 2017 was 6.7% .

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 (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.

DateValue
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

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 ₹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 27 Nov 20

DurationReturns
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
YearReturns
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
NameSinceTenure
Sunaina Cunha18 Jun 0911.38 Yr.
Kaustubh Gupta15 Jul 119.31 Yr.

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

Asset Allocation
Asset ClassValue
Cash100%
Debt Sector Allocation
SectorValue
Cash Equivalent67.09%
Corporate30.56%
Government2.35%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
182 DTB 19112020
Sovereign Bonds | -
5%₹1,548 Cr155,000,000
8.12% Govt Stock 2020
Sovereign Bonds | -
4%₹1,455 Cr144,696,000
↑ 32,696,000
182 DTB 12112020
Sovereign Bonds | -
4%₹1,349 Cr135,000,000
182 DTB 03122020
Sovereign Bonds | -
4%₹1,197 Cr120,000,000
91 DTB 05112020
Sovereign Bonds | -
3%₹1,000 Cr100,000,000
182 DTB 06112020
Sovereign Bonds | -
3%₹1,000 Cr100,000,000
182 DTB 17122020
Sovereign Bonds | -
2%₹812 Cr81,500,000
8.03% Odisha SDL 2020
Sovereign Bonds | -
1%₹421 Cr42,000,000
Housing Development Finance Corporation Limited
Debentures | -
1%₹395 Cr3,925
↑ 3,925
Housing Development Finance Corporation Limited
Debentures | -
1%₹285 Cr285
↑ 225

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 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.

DateValue
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

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 ₹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 27 Nov 20

DurationReturns
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
YearReturns
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
NameSinceTenure
Devang Shah5 Nov 127.99 Yr.
Aditya Pagaria13 Aug 164.22 Yr.

Data below for Axis Liquid Fund as on 31 Oct 20

Asset Allocation
Asset ClassValue
Cash100%
Debt Sector Allocation
SectorValue
Cash Equivalent89.9%
Corporate9.16%
Government0.94%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
364 DTB 26112020
Sovereign Bonds | -
7%₹1,866 Cr186,978,700
↑ 186,978,700
182 DTB 26112020
Sovereign Bonds | -
6%₹1,696 Cr170,000,000
↑ 20,000,000
91 DTB 10122020
Sovereign Bonds | -
5%₹1,420 Cr142,500,000
↑ 67,500,000
91 DTB 03122020
Sovereign Bonds | -
5%₹1,346 Cr135,000,000
↑ 5,000,000
91 DTB 7012021
Sovereign Bonds | -
5%₹1,287 Cr129,500,000
↑ 129,500,000
91 DTB 05112020
Sovereign Bonds | -
4%₹1,110 Cr111,000,000
↓ -7,500,000
91 DTB 26112020
Sovereign Bonds | -
4%₹1,003 Cr100,500,000
↓ -2,500,000
91 DTB 17122020
Sovereign Bonds | -
4%₹996 Cr100,000,000
↑ 100,000,000
182 DTB 19112020
Sovereign Bonds | -
3%₹756 Cr75,750,000
↑ 17,250,000
91 DTB 12112020
Sovereign Bonds | -
2%₹495 Cr49,500,000
↓ -2,500,000

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 (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.

DateValue
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

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 ₹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 27 Nov 20

DurationReturns
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
YearReturns
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
NameSinceTenure
Amandeep Chopra14 Dec 0613.89 Yr.
Amit Sharma7 Jul 173.32 Yr.

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

Asset Allocation
Asset ClassValue
Cash100%
Debt Sector Allocation
SectorValue
Cash Equivalent60.77%
Corporate36.37%
Government2.86%
Credit Quality
RatingValue
A0.19%
AAA99.81%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
91 DTB 03122020
Sovereign Bonds | -
10%₹2,593 Cr26,002,900,000
91 DTB 17122020
Sovereign Bonds | -
8%₹2,137 Cr21,450,000,000
↑ 3,950,000,000
91 DTB 05112020
Sovereign Bonds | -
6%₹1,499 Cr15,000,000,000
91 DTB 24122020
Sovereign Bonds | -
6%₹1,493 Cr15,000,000,000
182 DTB 17122020
Sovereign Bonds | -
5%₹1,195 Cr12,000,000,000
182 DTB 26112020
Sovereign Bonds | -
3%₹698 Cr7,000,000,000
182 DTB 24122020
Sovereign Bonds | -
2%₹597 Cr6,000,000,000
↑ 6,000,000,000
91 DTB 21012021
Sovereign Bonds | -
2%₹496 Cr5,000,000,000
↑ 5,000,000,000
364 DTB 26112020
Sovereign Bonds | -
1%₹249 Cr2,500,000,000
↑ 2,500,000,000
91 DTB 10122020
Sovereign Bonds | -
1%₹249 Cr2,500,000,000
↑ 2,500,000,000

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 (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.

DateValue
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

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 ₹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 27 Nov 20

DurationReturns
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
YearReturns
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
NameSinceTenure
Rahul Goswami27 Sep 128.1 Yr.
Rohan Maru19 Sep 137.12 Yr.

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

Asset Allocation
Asset ClassValue
Cash100%
Debt Sector Allocation
SectorValue
Cash Equivalent80.72%
Corporate18.41%
Government0.87%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
91 DTB 12112020
Sovereign Bonds | -
11%₹4,496 Cr450,000,000
182 DTB 06112020
Sovereign Bonds | -
6%₹2,284 Cr228,500,000
↓ -82,000,000
91 DTB 14012021
Sovereign Bonds | -
6%₹2,236 Cr225,000,000
↑ 225,000,000
91 DTB 24122020
Sovereign Bonds | -
5%₹2,195 Cr220,500,000
↑ 500,000
91 DTB 05112020
Sovereign Bonds | -
4%₹1,430 Cr143,000,000
↓ -37,000,000
91 DTB 21012021
Sovereign Bonds | -
4%₹1,415 Cr142,500,000
↑ 142,500,000
91 DTB 03122020
Sovereign Bonds | -
3%₹1,407 Cr141,079,700
↑ 5,000,000
182 DTB 12112020
Sovereign Bonds | -
3%₹1,094 Cr109,500,000
91 DTB 7012021
Sovereign Bonds | -
2%₹800 Cr80,500,000
↑ 80,500,000
91 DTB 17122020
Sovereign Bonds | -
2%₹772 Cr77,500,000

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 7.4% since its launch.  Ranked 18 in Liquid Fund category.  Return for 2019 was 6.6% , 2018 was 7.4% and 2017 was 6.7% .

Below is the key information for Tata Liquid Fund

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.

DateValue
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

Tata 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 ₹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 27 Nov 20

DurationReturns
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
YearReturns
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
NameSinceTenure
Amit Somani16 Oct 137.05 Yr.
Abhishek Sonthalia6 Feb 200.74 Yr.

Data below for Tata Liquid Fund as on 31 Oct 20

Asset Allocation
Asset ClassValue
Cash100%
Debt Sector Allocation
SectorValue
Cash Equivalent67.61%
Corporate23.79%
Government8.6%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.00% Govt Stock 2021
Sovereign Bonds | -
8%₹1,240 Cr123,000,000
↑ 123,000,000
91 DTB 17122020
Sovereign Bonds | -
5%₹872 Cr87,500,000
↑ 87,500,000
182 DTB 24122020
Sovereign Bonds | -
5%₹846 Cr85,000,000
↑ 35,000,000
8.12% Govt Stock 2020
Sovereign Bonds | -
4%₹643 Cr64,000,000
↑ 500,000
182 DTB 03122020
Sovereign Bonds | -
3%₹539 Cr54,000,000
↑ 4,000,000
182 DTB 12112020
Sovereign Bonds | -
3%₹500 Cr50,000,000
91 DTB 7012021
Sovereign Bonds | -
2%₹348 Cr35,000,000
↑ 35,000,000
91 DTB 14012021
Sovereign Bonds | -
2%₹306 Cr30,836,400
↑ 30,836,400
182 DTB 19112020
Sovereign Bonds | -
2%₹280 Cr28,000,000
182 DTB 06112020
Sovereign Bonds | -
2%₹255 Cr25,500,000
↓ -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

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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