+91-22-62820123
Table of Contents
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.
Talk to our investment specialist
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 Aditya Birla Sun Life Liquid Fund Growth ₹317.94
↑ 0.11 ₹41,466 0.6 1.4 2.8 6.3 6.7 5.61% 1M 6D 1M 6D Nippon India Liquid Fund Growth ₹4,825.96
↑ 2.09 ₹28,267 0.6 1.4 2.8 6.2 6.7 5.5% 1M 3D 1M 6D Axis Liquid Fund Growth ₹2,195.44
↑ 0.69 ₹30,919 0.6 1.5 2.8 6.2 6.6 5.44% 1M 5D 1M 6D Tata Liquid Fund Growth ₹3,115.4
↑ 0.91 ₹18,671 0.6 1.5 2.8 6.2 6.6 5.54% 1M 2D 1M 2D ICICI Prudential Liquid Fund Growth ₹292.693
↑ 0.04 ₹45,079 0.6 1.4 2.8 6.2 6.6 5.39% 1M 3D 1M 4D DSP BlackRock Liquidity Fund Growth ₹2,823.85
↑ 1.00 ₹12,761 0.6 1.5 2.8 6.1 6.5 5.38% 22D 25D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 3 Apr 20 Liquid funds having AUM/Net Assets above 10,000 Crore and managing funds for 5 or more years.
(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 (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 To provide a high level of liquidity with reasonable returns commensurating with low risk through a portfolio of money market and debt securities. However there can be no assurance that the investment objective of the scheme will be achieved. Axis Liquid Fund is a Debt - Liquid Fund fund was launched on 9 Oct 09. It is a fund with Low risk and has given a Below is the key information for Axis Liquid Fund Returns up to 1 year are on (Erstwhile 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 (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 The Scheme seeks to generate reasonable returns commensurate with low risk from a portfolio constituted of money market and high quality debts DSP BlackRock Liquidity Fund is a Debt - Liquid Fund fund was launched on 23 Nov 05. It is a fund with Low risk and has given a Below is the key information for DSP BlackRock Liquidity Fund Returns up to 1 year are on 1. Aditya Birla Sun Life Liquid Fund
CAGR/Annualized return of 7.5% 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 (03 Apr 20) ₹317.94 ↑ 0.11 (0.03 %) Net Assets (Cr) ₹41,466 on 29 Feb 20 Category Debt - Liquid Fund AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆ Risk Low Expense Ratio 0.23 Sharpe Ratio 15.92 Information Ratio -1.58 Alpha Ratio 0.57 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 5.61% Effective Maturity 1 Month 6 Days Modified Duration 1 Month 6 Days Growth of 10,000 investment over the years.
Date Value 31 Mar 15 ₹10,000 31 Mar 16 ₹10,824 31 Mar 17 ₹11,615 31 Mar 18 ₹12,405 31 Mar 19 ₹13,332 31 Mar 20 ₹14,167 Returns for Aditya Birla Sun Life Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Apr 20 Duration Returns 1 Month 0.6% 3 Month 1.4% 6 Month 2.8% 1 Year 6.3% 3 Year 6.8% 5 Year 7.2% 10 Year 15 Year Since launch 7.5% 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 10.54 Yr. Kaustubh Gupta 15 Jul 11 8.47 Yr. Data below for Aditya Birla Sun Life Liquid Fund as on 29 Feb 20
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 51.39% Corporate 42.97% Government 5.64% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 70 DCMB 17032020
Sovereign Bonds | -7% ₹2,928 Cr 293,500,000
↓ -35,500,000 Net Receivables / (Payables)
Net Current Assets | -7% -₹2,711 Cr 63 DCMB 17032020
Sovereign Bonds | -5% ₹1,946 Cr 195,000,000
↓ -30,000,000 Reverse Repo
CBLO/Reverse Repo | -5% ₹1,937 Cr 76 DCMB 17032020
Sovereign Bonds | -4% ₹1,821 Cr 182,500,000
↓ -22,500,000 Tata Sons Limited
Commercial Paper | -4% ₹1,499 Cr 30,000 Andhra Bank
Certificate of Deposit | -3% ₹1,041 Cr 105,040
↑ 105,040 Tata Steel Limited
Commercial Paper | -2% ₹997 Cr 20,000 Reliance Jio Infocomm Limited
Commercial Paper | -2% ₹988 Cr 20,000
↑ 20,000 6.65% Govt Stock 2020
Sovereign Bonds | -2% ₹872 Cr 87,080,000
↓ -25,000,000 2. Nippon India Liquid Fund
CAGR/Annualized return of 7.3% 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 (03 Apr 20) ₹4,825.96 ↑ 2.09 (0.04 %) Net Assets (Cr) ₹28,267 on 29 Feb 20 Category Debt - Liquid Fund AMC Nippon Life Asset Management Ltd. Rating ☆☆☆☆ Risk Low Expense Ratio 0.21 Sharpe Ratio 14.54 Information Ratio -1.48 Alpha Ratio 0.32 Min Investment 100 Min SIP Investment 100 Exit Load NIL Yield to Maturity 5.5% Effective Maturity 1 Month 6 Days Modified Duration 1 Month 3 Days Growth of 10,000 investment over the years.
Date Value 31 Mar 15 ₹10,000 31 Mar 16 ₹10,822 31 Mar 17 ₹11,610 31 Mar 18 ₹12,398 31 Mar 19 ₹13,329 31 Mar 20 ₹14,160 Returns for Nippon India Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Apr 20 Duration Returns 1 Month 0.6% 3 Month 1.4% 6 Month 2.8% 1 Year 6.2% 3 Year 6.8% 5 Year 7.2% 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 8.3% 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 6.25 Yr. Kinjal Desai 25 May 18 1.6 Yr. Data below for Nippon India Liquid Fund as on 29 Feb 20
Asset Allocation
Asset Class Value Cash 99.99% Other 0.01% Debt Sector Allocation
Sector Value Cash Equivalent 54.97% Corporate 29.25% Government 15.77% Credit Quality
Rating Value AAA 99.58% Top Securities Holdings / Portfolio
Name Holding Value Quantity 48 DCMB 23032020
Sovereign Bonds | -6% ₹1,640 Cr 164,500,000
↑ 164,500,000 70 DCMB 17032020
Sovereign Bonds | -4% ₹1,212 Cr 121,500,000
↓ -28,500,000 Reliance Industries Limited
Commercial Paper | -4% ₹998 Cr 20,000
↑ 20,000 National Bank For Agriculture And Rural Development
Commercial Paper | -3% ₹970 Cr 19,500
↓ -500 NTPC Limited
Commercial Paper | -3% ₹943 Cr 19,000 7.80% Govt Stock 2020
Sovereign Bonds | -3% ₹854 Cr 85,000,000
↑ 85,000,000 Chennai Petroleum Corporation Ltd
Commercial Paper | -3% ₹800 Cr 16,000 76 DCMB 17032020
Sovereign Bonds | -3% ₹753 Cr 75,500,000
↓ -39,000,000 NTPC Limited
Commercial Paper | -2% ₹698 Cr 14,000 91 DTB 19032020
Sovereign Bonds | -2% ₹658 Cr 66,000,000
↑ 2,500,000 3. Axis Liquid Fund
CAGR/Annualized return of 7.8% 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 (03 Apr 20) ₹2,195.44 ↑ 0.69 (0.03 %) Net Assets (Cr) ₹30,919 on 29 Feb 20 Category Debt - Liquid Fund AMC Axis Asset Management Company Limited Rating ☆☆☆☆ Risk Low Expense Ratio 0.14 Sharpe Ratio 14.4 Information Ratio 0 Alpha Ratio 0 Min Investment 500 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 5.44% Effective Maturity 1 Month 6 Days Modified Duration 1 Month 5 Days Growth of 10,000 investment over the years.
Date Value 31 Mar 15 ₹10,000 31 Mar 16 ₹10,821 31 Mar 17 ₹11,609 31 Mar 18 ₹12,401 31 Mar 19 ₹13,334 31 Mar 20 ₹14,167 Returns for Axis Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Apr 20 Duration Returns 1 Month 0.6% 3 Month 1.5% 6 Month 2.8% 1 Year 6.2% 3 Year 6.9% 5 Year 7.2% 10 Year 15 Year Since launch 7.8% 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 7.07 Yr. Aditya Pagaria 13 Aug 16 3.3 Yr. Data below for Axis Liquid Fund as on 29 Feb 20
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 76.23% Corporate 22.31% Government 1.46% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 91 DTB 21052020
Sovereign Bonds | -6% ₹1,978 Cr 200,000,000
↑ 200,000,000 Clearing Corporation Of India Ltd
CBLO | -6% ₹1,885 Cr 91 Days Tbill 05032020
Sovereign Bonds | -5% ₹1,629 Cr 163,000,000 76 DCMB 17032020
Sovereign Bonds | -4% ₹1,377 Cr 138,000,000
↑ 1,000,000 91 DTB 26032020
Sovereign Bonds | -4% ₹1,126 Cr 113,000,000
↓ -27,000,000 70 DCMB 17032020
Sovereign Bonds | -3% ₹1,063 Cr 106,500,000
↓ -145,500,000 63 DCMB 17032020
Sovereign Bonds | -3% ₹1,061 Cr 106,377,400
↓ -104,500,000 Larsen And Toubro Limited
Commercial Paper | -3% ₹847 Cr 17,000
↑ 17,000 91 DTB 28052020
Sovereign Bonds | -2% ₹678 Cr 68,612,600
↑ 68,612,600 Chennai Petroleum Corporation Ltd
Commercial Paper | -2% ₹647 Cr 13,000
↑ 13,000 4. Tata Liquid Fund
CAGR/Annualized return of 7.6% 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 (03 Apr 20) ₹3,115.4 ↑ 0.91 (0.03 %) Net Assets (Cr) ₹18,671 on 29 Feb 20 Category Debt - Liquid Fund AMC Tata Asset Management Limited Rating ☆☆☆☆ Risk Low Expense Ratio 0.34 Sharpe Ratio 14.61 Information Ratio -1.99 Alpha Ratio 0.3 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 5.54% Effective Maturity 1 Month 2 Days Modified Duration 1 Month 2 Days Growth of 10,000 investment over the years.
Date Value 31 Mar 15 ₹10,000 31 Mar 16 ₹10,820 31 Mar 17 ₹11,608 31 Mar 18 ₹12,395 31 Mar 19 ₹13,321 31 Mar 20 ₹14,152 Returns for Tata Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Apr 20 Duration Returns 1 Month 0.6% 3 Month 1.5% 6 Month 2.8% 1 Year 6.2% 3 Year 6.8% 5 Year 7.2% 10 Year 15 Year Since launch 7.6% 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 6.13 Yr. Data below for Tata Liquid Fund as on 29 Feb 20
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 61.33% Corporate 26.93% Government 11.74% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Cash / Net Current Asset
Net Current Assets | -6% ₹1,087 Cr 6.83% Govt Stock 2020
Sovereign Bonds | -6% ₹1,054 Cr 106,000,000 70 DCMB 17032020
Sovereign Bonds | -5% ₹998 Cr 100,000,000
↓ -21,500,000 91 DTB 26032020
Sovereign Bonds | -4% ₹777 Cr 78,000,000 364 DTB 02042020
Sovereign Bonds | -3% ₹622 Cr 62,497,800 National Bank For Agriculture And Rural Development
Commercial Paper | -3% ₹599 Cr 12,000
↑ 4,000 Indian Oil Corporation Limited
Commercial Paper | -3% ₹599 Cr 12,000 National Fertilizers Limited
Commercial Paper | -3% ₹550 Cr 11,000 NTPC Limited
Commercial Paper | -3% ₹498 Cr 10,000 Punjab and Sind Bank
Certificate of Deposit | -3% ₹494 Cr 50,000
↑ 50,000 5. ICICI Prudential Liquid Fund
CAGR/Annualized return of 7.8% 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 (03 Apr 20) ₹292.693 ↑ 0.04 (0.01 %) Net Assets (Cr) ₹45,079 on 29 Feb 20 Category Debt - Liquid Fund AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Low Expense Ratio 0.22 Sharpe Ratio 14.13 Information Ratio -2.4 Alpha Ratio 0.17 Min Investment 500 Min SIP Investment 500 Exit Load NIL Yield to Maturity 5.39% Effective Maturity 1 Month 4 Days Modified Duration 1 Month 3 Days Growth of 10,000 investment over the years.
Date Value 31 Mar 15 ₹10,000 31 Mar 16 ₹10,822 31 Mar 17 ₹11,610 31 Mar 18 ₹12,394 31 Mar 19 ₹13,314 31 Mar 20 ₹14,140 Returns for ICICI Prudential Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Apr 20 Duration Returns 1 Month 0.6% 3 Month 1.4% 6 Month 2.8% 1 Year 6.2% 3 Year 6.8% 5 Year 7.2% 10 Year 15 Year Since launch 7.8% 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 7.26 Yr. Rohan Maru 19 Sep 13 6.29 Yr. Data below for ICICI Prudential Liquid Fund as on 29 Feb 20
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 72.76% Corporate 24.73% Government 2.51% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 76 DCMB 17032020
Sovereign Bonds | -7% ₹3,008 Cr 301,500,000
↓ -81,000,000 48 DCMB 23032020
Sovereign Bonds | -6% ₹2,781 Cr 279,000,000
↑ 279,000,000 45 DCMB 23032020
Sovereign Bonds | -6% ₹2,655 Cr 266,333,300
↑ 266,333,300 6.65% Govt Stock 2020
Sovereign Bonds | -5% ₹2,434 Cr 243,000,000
↓ -1,500,000 91 DTB 07052020
Sovereign Bonds | -5% ₹2,205 Cr 222,500,000
↑ 222,500,000 91 Days Tbill 05032020
Sovereign Bonds | -4% ₹1,704 Cr 170,500,000
↓ -5,000,000 63 DCMB 17032020
Sovereign Bonds | -4% ₹1,603 Cr 160,688,600
↓ -23,000,000 NTPC Limited
Commercial Paper | -3% ₹1,483 Cr 30,000
↑ 30,000 91 DTB 19032020
Sovereign Bonds | -3% ₹1,222 Cr 122,500,000 Reliance Jio Infocomm Limited
Commercial Paper | -2% ₹989 Cr 20,000
↑ 20,000 6. DSP BlackRock Liquidity Fund
CAGR/Annualized return of 7.5% since its launch. Ranked 36 in Liquid Fund category. Return for 2019 was 6.5% , 2018 was 7.4% and 2017 was 6.6% . DSP BlackRock Liquidity Fund
Growth Launch Date 23 Nov 05 NAV (03 Apr 20) ₹2,823.85 ↑ 1.00 (0.04 %) Net Assets (Cr) ₹12,761 on 29 Feb 20 Category Debt - Liquid Fund AMC DSP BlackRock Invmt Managers Pvt. Ltd. Rating ☆☆☆ Risk Low Expense Ratio 0.21 Sharpe Ratio 15.04 Information Ratio -2.41 Alpha Ratio 0.42 Min Investment 1,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 5.38% Effective Maturity 25 Days Modified Duration 22 Days Growth of 10,000 investment over the years.
Date Value 31 Mar 15 ₹10,000 31 Mar 16 ₹10,814 31 Mar 17 ₹11,594 31 Mar 18 ₹12,373 31 Mar 19 ₹13,296 31 Mar 20 ₹14,114 Returns for DSP BlackRock Liquidity Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 3 Apr 20 Duration Returns 1 Month 0.6% 3 Month 1.5% 6 Month 2.8% 1 Year 6.1% 3 Year 6.8% 5 Year 7.1% 10 Year 15 Year Since launch 7.5% Historical performance (Yearly) on absolute basis
Year Returns 2019 6.5% 2018 7.4% 2017 6.6% 2016 7.6% 2015 8.3% 2014 9% 2013 9.2% 2012 9.7% 2011 8.9% 2010 5.5% Fund Manager information for DSP BlackRock Liquidity Fund
Name Since Tenure Kedar Karnik 17 Jul 16 3.46 Yr. Rahul Vekaria 1 Mar 18 1.84 Yr. Data below for DSP BlackRock Liquidity Fund as on 29 Feb 20
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 68.53% Corporate 25.8% Government 5.66% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Treps / Reverse Repo Investments / Corporate Debt Repo
CBLO/Reverse Repo | -7% ₹910 Cr 76 DCMB 17032020
Sovereign Bonds | -6% ₹718 Cr 72,000,000 91 DTB 19032020
Sovereign Bonds | -5% ₹698 Cr 70,000,000 63 DCMB 17032020
Sovereign Bonds | -5% ₹619 Cr 62,000,000
↑ 12,000,000 Hindustan Petroleum Corporation Limited
Commercial Paper | -4% ₹500 Cr 10,000 Reliance Industries Limited
Commercial Paper | -4% ₹499 Cr 10,000
↑ 10,000 364 DTB 02042020
Sovereign Bonds | -4% ₹498 Cr 50,000,000 Ultratech Cement Limited
Commercial Paper | -4% ₹494 Cr 10,000
↑ 10,000 NTPC Limited
Commercial Paper | -3% ₹374 Cr 7,500 HDFC Bank Limited
Certificate of Deposit | -3% ₹365 Cr 36,500
↑ 26,500
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.
AMFI Registration No. 112358 | CIN: U74999MH2016PTC282153
Shepard Technologies Pvt. Ltd. (with ARN code 112358) makes no warranties or representations, express or implied, on products offered through the platform. It accepts no liability for any damages or losses, however caused, in connection with the use of, or on the reliance of its product or related services. Terms and conditions of the website are applicable.
©2020 Shepard Technologies Private Limited. All Rights Reserved