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6 Best Liquid Mutual Funds 2019
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 19 - 20
Fund NAV Net Assets (Cr) 1 MO (%) 3 MO (%) 6 MO (%) 1 YR (%) 2018 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Reliance Liquid Fund Growth ₹4,526.52
↑ 0.90 ₹41,188 0.5 1.8 3.7 7.5 7.4 7.36% 1M 9D 1M 12D Axis Liquid Fund Growth ₹2,058.99
↑ 0.40 ₹28,010 0.5 1.8 3.7 7.5 7.5 7.07% 1M 4D 1M 5D Tata Liquid Fund Growth ₹2,923.12
↑ 0.56 ₹24,905 0.5 1.8 3.7 7.5 7.4 7.15% 1M 6D 1M 6D Aditya Birla Sun Life Liquid Fund Growth ₹298.169
↑ 0.06 ₹57,548 0.5 1.8 3.7 7.5 7.4 7.16% 29D 29D Invesco India Liquid Fund Growth ₹2,555.11
↑ 0.49 ₹10,262 0.5 1.8 3.7 7.5 7.4 7.13% 1M 13D 1M 16D ICICI Prudential Liquid Fund Growth ₹274.653
↑ 0.05 ₹59,354 0.5 1.8 3.6 7.5 7.4 7.07% 1M 14D 1M 17D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 19 Mar 19 Liquid funds having AUM/Net Assets above 10,000 Crore and managing funds for 5 or more years.
(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. Reliance 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 Reliance 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 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 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 Below is the key information for Invesco India 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 1. Reliance Liquid Fund
CAGR/Annualized return of 7.4% since its launch. Ranked 11 in Liquid Fund category. Return for 2018 was 7.4% , 2017 was 6.7% and 2016 was 7.7% . Reliance Liquid Fund
Growth Launch Date 9 Dec 03 NAV (19 Mar 19) ₹4,526.52 ↑ 0.90 (0.02 %) Net Assets (Cr) ₹41,188 on 28 Feb 19 Category Debt - Liquid Fund AMC Reliance Nippon Life Asset Management Ltd. Rating ☆☆☆☆ Risk Low Expense Ratio 0.18 Sharpe Ratio 19.12 Information Ratio -0.24 Alpha Ratio 0.54 Min Investment 100 Min SIP Investment 100 Exit Load NIL Yield to Maturity 7.36% Effective Maturity 1 Month 12 Days Modified Duration 1 Month 9 Days Growth of 10,000 investment over the years.
Date Value 28 Feb 14 ₹10,000 28 Feb 15 ₹10,903 29 Feb 16 ₹11,801 28 Feb 17 ₹12,685 28 Feb 18 ₹13,530 28 Feb 19 ₹14,550 Returns for Reliance Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Mar 19 Duration Returns 1 Month 0.5% 3 Month 1.8% 6 Month 3.7% 1 Year 7.5% 3 Year 7.2% 5 Year 7.8% 10 Year 15 Year Since launch 7.4% Historical performance (Yearly) on absolute basis
Year Returns 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% 2009 5.5% Fund Manager information for Reliance Liquid Fund
Name Since Tenure Anju Chhajer 1 Oct 13 5.34 Yr. Kinjal Desai 25 May 18 0.69 Yr. Data below for Reliance Liquid Fund as on 28 Feb 19
Asset Allocation
Asset Class Value Cash 99.99% Other 0.01% Debt Sector Allocation
Sector Value Cash Equivalent 96.7% Corporate 3.29% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Commercial Paper | -5% ₹1,956 Cr 39,200
↓ -700 Deutsche Bank Ag
Certificate of Deposit | -2% ₹1,025 Cr Canara Bank
Certificate of Deposit | -2% ₹997 Cr 100,350
↓ -1,500 Punjab National Bank
Certificate of Deposit | -2% ₹993 Cr 99,500 VIJAYA BANK
Certificate of Deposit | -2% ₹992 Cr 99,500 AXIS BANK LIMITED
Certificate of Deposit | -2% ₹984 Cr 100,000
↑ 100,000 NTPC LIMITED
Commercial Paper | -2% ₹747 Cr 15,122
↑ 15,122 Corporate Bond Repo (Counterparty Reliance Industries Limited )
CBLO/Reverse Repo | -2% ₹709 Cr INDIAN OIL CORPORATION LIMITED
Commercial Paper | -2% ₹643 Cr 12,900 Standard Chartered Bank **
Net Current Assets | -1% ₹590 Cr 2. Axis Liquid Fund
CAGR/Annualized return of 8% since its launch. Ranked 21 in Liquid Fund category. Return for 2018 was 7.5% , 2017 was 6.7% and 2016 was 7.6% . Axis Liquid Fund
Growth Launch Date 9 Oct 09 NAV (19 Mar 19) ₹2,058.99 ↑ 0.40 (0.02 %) Net Assets (Cr) ₹28,010 on 28 Feb 19 Category Debt - Liquid Fund AMC Axis Asset Management Company Limited Rating ☆☆☆☆ Risk Low Expense Ratio 0.15 Sharpe Ratio 19.75 Information Ratio 0 Alpha Ratio 0 Min Investment 500 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.07% Effective Maturity 1 Month 5 Days Modified Duration 1 Month 4 Days Growth of 10,000 investment over the years.
Date Value 28 Feb 14 ₹10,000 28 Feb 15 ₹10,904 29 Feb 16 ₹11,801 28 Feb 17 ₹12,682 28 Feb 18 ₹13,533 28 Feb 19 ₹14,552 Returns for Axis Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Mar 19 Duration Returns 1 Month 0.5% 3 Month 1.8% 6 Month 3.7% 1 Year 7.5% 3 Year 7.2% 5 Year 7.8% 10 Year 15 Year Since launch 8% Historical performance (Yearly) on absolute basis
Year Returns 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% 2009 Fund Manager information for Axis Liquid Fund
Name Since Tenure Devang Shah 5 Nov 12 6.24 Yr. Aditya Pagaria 13 Aug 16 2.47 Yr. Data below for Axis Liquid Fund as on 28 Feb 19
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 94.64% Corporate 5.36% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Corporate Bond Repo
CBLO/Reverse Repo | -8% ₹2,114 Cr OIL& NATURAL GAS CORPORATION LIMITED
Commercial Paper | -3% ₹746 Cr 15,000
↑ 15,000 CHENNAI PETROLEUM CORPORATION LTD
Commercial Paper | -2% ₹575 Cr 11,500
↓ -5,000 8.39% RJ SDL Spl 2019
Domestic Bonds | -2% ₹558 Cr 55,806,000 Net Receivables / (Payables)
Net Current Assets | -2% -₹548 Cr LARSEN AND TOUBRO LIMITED
Commercial Paper | -2% ₹499 Cr 10,000
↑ 10,000 VIJAYA BANK
Certificate of Deposit | -2% ₹499 Cr 50,000 RELIANCE RETAIL LIMITED
Commercial Paper | -2% ₹498 Cr 10,000
↑ 10,000 HINDUSTAN PETROLEUM CORPORATION LIMITED
Commercial Paper | -2% ₹498 Cr 10,000
↑ 10,000 NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Commercial Paper | -2% ₹498 Cr 10,000
↑ 10,000 3. Tata Liquid Fund
CAGR/Annualized return of 7.7% since its launch. Ranked 18 in Liquid Fund category. Return for 2018 was 7.4% , 2017 was 6.7% and 2016 was 7.7% . Tata Liquid Fund
Growth Launch Date 1 Sep 04 NAV (19 Mar 19) ₹2,923.12 ↑ 0.56 (0.02 %) Net Assets (Cr) ₹24,905 on 28 Feb 19 Category Debt - Liquid Fund AMC Tata Asset Management Limited Rating ☆☆☆☆ Risk Low Expense Ratio 0.21 Sharpe Ratio 20.43 Information Ratio -0.28 Alpha Ratio 0.76 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 7.15% Effective Maturity 1 Month 6 Days Modified Duration 1 Month 6 Days Growth of 10,000 investment over the years.
Date Value 28 Feb 14 ₹10,000 28 Feb 15 ₹10,905 29 Feb 16 ₹11,801 28 Feb 17 ₹12,683 28 Feb 18 ₹13,529 28 Feb 19 ₹14,547 Returns for Tata Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Mar 19 Duration Returns 1 Month 0.5% 3 Month 1.8% 6 Month 3.7% 1 Year 7.5% 3 Year 7.2% 5 Year 7.8% 10 Year 15 Year Since launch 7.7% Historical performance (Yearly) on absolute basis
Year Returns 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% 2009 5.5% Fund Manager information for Tata Liquid Fund
Name Since Tenure Amit Somani 16 Oct 13 5.3 Yr. Data below for Tata Liquid Fund as on 28 Feb 19
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 96.89% Corporate 3.11% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 91 DTB 28032019
Sovereign Bonds | -6% ₹1,483 Cr 149,042,000
↓ -5,000,000 PUNJAB NATIONAL BANK
Certificate of Deposit | -4% ₹997 Cr 100,000
↑ 100,000 Net Current Liabilities
Certificate of Deposit | -4% -₹944 Cr HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED
Commercial Paper | -4% ₹878 Cr 17,700
↓ -800 L & T INFRASTRUCTURE FINANCE COMPANY LIMITED
Commercial Paper | -3% ₹698 Cr 14,000 PNB Housing Finance Limited
Commercial Paper | -2% ₹600 Cr 12,000 91 DTB 30052019
Sovereign Bonds | -2% ₹573 Cr 58,159,600
↑ 58,159,600 91 DTB 11042019
Sovereign Bonds | -2% ₹548 Cr 55,140,100 41 DTB 18032019
Sovereign Bonds | -2% ₹527 Cr 52,900,000
↑ 52,900,000 RELIANCE INDUSTRIES LIMITED
Commercial Paper | -2% ₹498 Cr 10,000
↑ 10,000 4. Aditya Birla Sun Life Liquid Fund
CAGR/Annualized return of 7.6% since its launch. Ranked 15 in Liquid Fund category. Return for 2018 was 7.4% , 2017 was 6.7% and 2016 was 7.7% . Aditya Birla Sun Life Liquid Fund
Growth Launch Date 30 Mar 04 NAV (19 Mar 19) ₹298.169 ↑ 0.06 (0.02 %) Net Assets (Cr) ₹57,548 on 28 Feb 19 Category Debt - Liquid Fund AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆ Risk Low Expense Ratio 0.19 Sharpe Ratio 18.66 Information Ratio -0.18 Alpha Ratio 0.49 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.16% Effective Maturity 29 Days Modified Duration 29 Days Growth of 10,000 investment over the years.
Date Value 28 Feb 14 ₹10,000 28 Feb 15 ₹10,910 29 Feb 16 ₹11,813 28 Feb 17 ₹12,702 28 Feb 18 ₹13,548 28 Feb 19 ₹14,565 Returns for Aditya Birla Sun Life Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Mar 19 Duration Returns 1 Month 0.5% 3 Month 1.8% 6 Month 3.7% 1 Year 7.5% 3 Year 7.2% 5 Year 7.8% 10 Year 15 Year Since launch 7.6% Historical performance (Yearly) on absolute basis
Year Returns 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% 2009 5.5% Fund Manager information for Aditya Birla Sun Life Liquid Fund
Name Since Tenure Sunaina Cunha 18 Jun 09 9.63 Yr. Kaustubh Gupta 15 Jul 11 7.55 Yr. Data below for Aditya Birla Sun Life Liquid Fund as on 28 Feb 19
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 93.7% Corporate 6.3% Credit Quality
Rating Value AA 2.83% AAA 97.17% Top Securities Holdings / Portfolio
Name Holding Value Quantity Clearing Corporation Of India Limited
CBLO | -5% ₹2,601 Cr TATA SONS PRIVATE LIMITED
Commercial Paper | -3% ₹1,977 Cr 40,000
↑ 40,000 Reverse Repo
CBLO/Reverse Repo | -3% ₹1,581 Cr Power Finance Corporation Ltd.
Debentures | -2% ₹1,235 Cr 12,350
↑ 5,200 PUNJAB NATIONAL BANK
Certificate of Deposit | -2% ₹1,125 Cr 114,270
↑ 114,270 7.11% Union Bank Of India (29/03/2019)
Certificate of Deposit | -2% ₹1,000 Cr 7.25% Indusind Bank Limited (13/03/2019)
Certificate of Deposit | -2% ₹1,000 Cr 7.01% Union Bank Of India (14/03/2019)
Certificate of Deposit | -2% ₹1,000 Cr National Fertilizers Limited
Commercial Paper | -2% ₹990 Cr 19,900
↑ 19,900 STEEL AUTHORITY OF INDIA LIMITED
Commercial Paper | -2% ₹989 Cr 20,000
↑ 20,000 5. Invesco India Liquid Fund
CAGR/Annualized return of 7.9% since its launch. Ranked 9 in Liquid Fund category. Return for 2018 was 7.4% , 2017 was 6.7% and 2016 was 7.6% . Invesco India Liquid Fund
Growth Launch Date 17 Nov 06 NAV (19 Mar 19) ₹2,555.11 ↑ 0.49 (0.02 %) Net Assets (Cr) ₹10,262 on 28 Feb 19 Category Debt - Liquid Fund AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆☆ Risk Low Expense Ratio 0.1 Sharpe Ratio 20.52 Information Ratio -0.3 Alpha Ratio 0.81 Min Investment 5,000 Min SIP Investment Exit Load NIL Yield to Maturity 7.13% Effective Maturity 1 Month 16 Days Modified Duration 1 Month 13 Days Growth of 10,000 investment over the years.
Date Value 28 Feb 14 ₹10,000 28 Feb 15 ₹10,903 29 Feb 16 ₹11,806 28 Feb 17 ₹12,688 28 Feb 18 ₹13,536 28 Feb 19 ₹14,552 Returns for Invesco India Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Mar 19 Duration Returns 1 Month 0.5% 3 Month 1.8% 6 Month 3.7% 1 Year 7.5% 3 Year 7.2% 5 Year 7.8% 10 Year 15 Year Since launch 7.9% Historical performance (Yearly) on absolute basis
Year Returns 2018 7.4% 2017 6.7% 2016 7.6% 2015 8.4% 2014 9.1% 2013 9.2% 2012 9.7% 2011 9% 2010 5.5% 2009 5.4% Fund Manager information for Invesco India Liquid Fund
Name Since Tenure Krishna Cheemalapati 25 Apr 11 7.78 Yr. Abhishek Bandiwdekar 24 Jul 18 0.52 Yr. Data below for Invesco India Liquid Fund as on 28 Feb 19
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 92.13% Corporate 7.87% Credit Quality
Rating Value AA 0.09% AAA 99.91% Top Securities Holdings / Portfolio
Name Holding Value Quantity Net Receivables / (Payables)
Net Current Assets | -6% -₹666 Cr 41 DTB 18032019
Sovereign Bonds | -4% ₹382 Cr 38,323,400
↑ 38,323,400 POWER FINANCE CORPORATION LIMITED
Commercial Paper | -3% ₹320 Cr 32,500,000
↑ 32,500,000 IDFC BANK LIMITED
Certificate of Deposit | -3% ₹297 Cr 30,000,000 COROMANDEL INTERNATIONAL LIMITED (COROMANDEL FERTILISERS LIMITED)
Commercial Paper | -3% ₹297 Cr 30,000,000
↑ 30,000,000 CANARA BANK
Certificate of Deposit | -3% ₹296 Cr 30,000,000
↑ 30,000,000 AXIS FINANCE LIMITED
Commercial Paper | -3% ₹296 Cr 30,000,000
↑ 30,000,000 SHREE CEMENT LIMITED
Commercial Paper | -3% ₹289 Cr 29,000,000
↓ -1,000,000 RELIANCE INDUSTRIES LIMITED
Commercial Paper | -2% ₹249 Cr 25,000,000
↑ 25,000,000 VIJAYA BANK
Certificate of Deposit | -2% ₹200 Cr 20,000,000
↑ 20,000,000 6. ICICI Prudential Liquid Fund
CAGR/Annualized return of 7.9% since its launch. Ranked 20 in Liquid Fund category. Return for 2018 was 7.4% , 2017 was 6.6% and 2016 was 7.7% . ICICI Prudential Liquid Fund
Growth Launch Date 17 Nov 05 NAV (19 Mar 19) ₹274.653 ↑ 0.05 (0.02 %) Net Assets (Cr) ₹59,354 on 28 Feb 19 Category Debt - Liquid Fund AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Low Expense Ratio 0.15 Sharpe Ratio 17.78 Information Ratio -0.6 Alpha Ratio 0.25 Min Investment 500 Min SIP Investment 500 Exit Load NIL Yield to Maturity 7.07% Effective Maturity 1 Month 17 Days Modified Duration 1 Month 14 Days Growth of 10,000 investment over the years.
Date Value 28 Feb 14 ₹10,000 28 Feb 15 ₹10,904 29 Feb 16 ₹11,801 28 Feb 17 ₹12,684 28 Feb 18 ₹13,524 28 Feb 19 ₹14,535 Returns for ICICI Prudential Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Mar 19 Duration Returns 1 Month 0.5% 3 Month 1.8% 6 Month 3.6% 1 Year 7.5% 3 Year 7.2% 5 Year 7.7% 10 Year 15 Year Since launch 7.9% Historical performance (Yearly) on absolute basis
Year Returns 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% 2009 5.6% Fund Manager information for ICICI Prudential Liquid Fund
Name Since Tenure Rahul Goswami 27 Sep 12 6.35 Yr. Rohan Maru 19 Sep 13 5.37 Yr. Data below for ICICI Prudential Liquid Fund as on 28 Feb 19
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 97.66% Corporate 2.34% Credit Quality
Rating Value AA 0.3% AAA 99.7% Top Securities Holdings / Portfolio
Name Holding Value Quantity Net Current Assets
Net Current Assets | -7% -₹4,414 Cr 91 DTB 02052019
Sovereign Bonds | -6% ₹3,656 Cr 369,565,200
↑ 10,000,000 NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Commercial Paper | -4% ₹2,606 Cr 53,000
↑ 53,000 91 DTB 09052019
Sovereign Bonds | -4% ₹2,498 Cr 252,827,400
↑ 252,827,400 91 DTB 25042019
Sovereign Bonds | -3% ₹1,989 Cr 200,767,200
↑ 6,500,000 HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED
Commercial Paper | -3% ₹1,970 Cr 40,000
↑ 40,000 NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Commercial Paper | -3% ₹1,938 Cr 39,000 TATA STEEL LIMITED
Commercial Paper | -3% ₹1,499 Cr 30,000
↑ 30,000 AXIS BANK LIMITED
Certificate of Deposit | -2% ₹1,468 Cr 147,500
↓ -2,500 Reliance Jio Infocomm Limited
Commercial Paper | -2% ₹1,241 Cr 24,900
↑ 24,900
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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