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6 Best Performing Liquid Mutual Funds to Invest in 2023 | Fincash.com

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6 Best Liquid Mutual Funds 2023

Updated on March 22, 2023 , 132998 views

In common terms, Best Liquid Funds are Debt Mutual Funds or rather money market Mutual Funds with the only difference being in the investment duration. Liquid Funds invest in very short money Market instruments like the Certificate of Deposit, treasury bills, commercial papers etc.

The investment duration of these funds is very short, generally ranging from a couple of days to a few weeks (it can even be one day!). The average residual maturity of liquid funds is less than 91 days as they invest in securities which individually have a maturity upto 91 days. Being a short-term Debt fund, these funds are highly suitable for investors looking for low-risk investments for short duration.

The low maturity period of best liquid funds helps fund managers to fulfil the Redemption demand of investors easily. In the market, there are various liquid fund investments available.

Why Invest in Liquid Funds?

  • Liquid funds have no lock-in or very low lock-in period.
  • The interest rate of liquid mutual funds is the lowest among all short-term investments due to low maturity period.
  • No entry and exit loads are applicable.
  • Liquid funds are a perfect solution for investors who wish to park their idle cash for a short duration without the risk of Capital Loss.

Liquid Funds better than Saving Bank Account?

Investing in liquid funds are any day a better option on investment as compared to putting money in popular saving Bank account schemes.

Owing to its familiarity and institutionalized nature of saving bank accounts, an average Indian taxpayer has more trust in them. However, it seems they are not the most popular short-term investment anymore. This is due to the rising acceptance of mutual funds by investors with different investment goals. Your hard earned money that lies in a savings bank account fetches you only 3.5% interest per annum. However, the best liquid funds have returned as high as 6.5-7.5% on an average in the past 1 year period, on an annualized Basis.

So, on returns alone, liquid funds score over a savings bank account. If you have a raise or a bonus coming your way, invest in liquid funds and party later.

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6 Best Liquid Funds India FY 23 - 24

FundNAVNet Assets (Cr)1 MO (%)3 MO (%)6 MO (%)1 YR (%)2022 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Axis Liquid Fund Growth ₹2,479.89
↑ 0.33
₹27,2260.61.73.35.64.97.23%1M 7D1M 8D
UTI Liquid Cash Plan Growth ₹3,656.82
↑ 0.40
₹31,4630.51.73.25.64.86.82%27D27D
DSP BlackRock Liquidity Fund Growth ₹3,182.45
↑ 0.48
₹13,5830.51.63.25.54.87.27%1M 2D1M 6D
Aditya Birla Sun Life Liquid Fund Growth ₹359.119
↑ 0.03
₹28,0720.61.73.25.64.87.22%1M 2D1M 2D
IDFC Cash Fund Growth ₹2,695.84
↑ 0.46
₹11,9620.51.63.25.54.80%
Nippon India Liquid Fund  Growth ₹5,443.71
↑ 0.59
₹25,3580.51.63.25.54.87.35%1M 13D1M 16D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 24 Mar 23
*Above is list of best Liquid funds having AUM/Net Assets above 10,000 Crore and managing funds for 5 or more years. Sorted on Last 1 Calendar Year Return.

1. Axis Liquid Fund

To provide a high level of liquidity with reasonable returns commensurating with low risk through a portfolio of money market and debt securities. However there can be no assurance that the investment objective of the scheme will be achieved.

Axis Liquid Fund is a Debt - Liquid Fund fund was launched on 9 Oct 09. It is a fund with Low risk and has given a CAGR/Annualized return of 7% since its launch.  Ranked 21 in Liquid Fund category.  Return for 2022 was 4.9% , 2021 was 3.3% and 2020 was 4.3% .

Below is the key information for Axis Liquid Fund

Axis Liquid Fund
Growth
Launch Date 9 Oct 09
NAV (24 Mar 23) ₹2,479.89 ↑ 0.33   (0.01 %)
Net Assets (Cr) ₹27,226 on 28 Feb 23
Category Debt - Liquid Fund
AMC Axis Asset Management Company Limited
Rating
Risk Low
Expense Ratio 0
Sharpe Ratio -0.93
Information Ratio 0
Alpha Ratio 0
Min Investment 500
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.23%
Effective Maturity 1 Month 8 Days
Modified Duration 1 Month 7 Days

Growth of 10,000 investment over the years.

DateValue
28 Feb 18₹10,000
28 Feb 19₹10,754
29 Feb 20₹11,434
28 Feb 21₹11,881
28 Feb 22₹12,280
28 Feb 23₹12,937

Axis Liquid Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹197,169.
Net Profit of ₹17,169
Invest Now

Returns for Axis Liquid Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Mar 23

DurationReturns
1 Month 0.6%
3 Month 1.7%
6 Month 3.3%
1 Year 5.6%
3 Year 4.3%
5 Year 5.3%
10 Year
15 Year
Since launch 7%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.9%
2021 3.3%
2020 4.3%
2019 6.6%
2018 7.5%
2017 6.7%
2016 7.6%
2015 8.4%
2014 9.1%
2013 9.2%
Fund Manager information for Axis Liquid Fund
NameSinceTenure
Devang Shah5 Nov 1210.25 Yr.
Aditya Pagaria13 Aug 166.47 Yr.

Data below for Axis Liquid Fund as on 28 Feb 23

Asset Allocation
Asset ClassValue
Cash100%
Debt Sector Allocation
SectorValue
Cash Equivalent84.94%
Corporate8.19%
Government4.6%
Securitized0.65%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Clearing Corporation Of India Ltd
CBLO/Reverse Repo | -
22%₹6,772 Cr
Punjab National Bank
Certificate of Deposit | -
2%₹748 Cr15,000
TATA Steel Limited
Commercial Paper | -
2%₹747 Cr15,000
Aditya Birla Finance Limited
Commercial Paper | -
2%₹746 Cr15,000
182 DTB 28042023
Sovereign Bonds | -
2%₹740 Cr75,000,000
↑ 75,000,000
Hindustan Zinc Limited
Commercial Paper | -
2%₹596 Cr12,000
↑ 12,000
91 DTB 16032023
Sovereign Bonds | -
2%₹572 Cr57,500,000
↓ -40,000,000
HDFC Bank Limited
Certificate of Deposit | -
2%₹544 Cr11,000
Reliance Industries Limited
CBLO/Reverse Repo | -
2%₹500 Cr
National Bank For Agriculture And Rural Development
Commercial Paper | -
2%₹499 Cr10,000

2. UTI Liquid Cash Plan

The investment objective of the scheme is to generate steady and reasonable income, with low risk and high level of liquidity from a portfolio of money market securities and high quality debt.

UTI Liquid Cash Plan is a Debt - Liquid Fund fund was launched on 11 Dec 03. It is a fund with Low risk and has given a CAGR/Annualized return of 6.8% since its launch.  Ranked 32 in Liquid Fund category.  Return for 2022 was 4.8% , 2021 was 3.3% and 2020 was 4.2% .

Below is the key information for UTI Liquid Cash Plan

UTI Liquid Cash Plan
Growth
Launch Date 11 Dec 03
NAV (24 Mar 23) ₹3,656.82 ↑ 0.40   (0.01 %)
Net Assets (Cr) ₹31,463 on 28 Feb 23
Category Debt - Liquid Fund
AMC UTI Asset Management Company Ltd
Rating
Risk Low
Expense Ratio 0.23
Sharpe Ratio -1.45
Information Ratio -4.6
Alpha Ratio -0.21
Min Investment 500
Min SIP Investment 1,500
Exit Load NIL
Yield to Maturity 6.82%
Effective Maturity 27 Days
Modified Duration 27 Days

Growth of 10,000 investment over the years.

DateValue
28 Feb 18₹10,000
28 Feb 19₹10,753
29 Feb 20₹11,429
28 Feb 21₹11,868
28 Feb 22₹12,266
28 Feb 23₹12,917

UTI Liquid Cash Plan SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹197,169.
Net Profit of ₹17,169
Invest Now

Returns for UTI Liquid Cash Plan

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Mar 23

DurationReturns
1 Month 0.5%
3 Month 1.7%
6 Month 3.2%
1 Year 5.6%
3 Year 4.3%
5 Year 5.3%
10 Year
15 Year
Since launch 6.8%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.8%
2021 3.3%
2020 4.2%
2019 6.6%
2018 7.4%
2017 6.7%
2016 7.7%
2015 8.3%
2014 9.1%
2013 9.1%
Fund Manager information for UTI Liquid Cash Plan
NameSinceTenure
Amandeep Chopra14 Dec 0616.15 Yr.
Amit Sharma7 Jul 175.58 Yr.

Data below for UTI Liquid Cash Plan as on 28 Feb 23

Asset Allocation
Asset ClassValue
Cash98.64%
Debt1.36%
Debt Sector Allocation
SectorValue
Cash Equivalent87.62%
Government8.46%
Corporate3.92%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Net Current Assets
Net Current Assets | -
47%₹16,887 Cr
National Bank For Agriculture And Rural Development
Commercial Paper | -
4%₹1,592 Cr16,000,000,000
Housing Development Finance Corporation Limited
Commercial Paper | -
2%₹746 Cr7,500,000,000
Hindustan Petroleum Corp Ltd.
Commercial Paper | -
2%₹547 Cr5,500,000,000
↑ 5,500,000,000
Union Bank Of India
Certificate of Deposit | -
1%₹499 Cr5,000,000,000
Export-Import Bank Of India
Commercial Paper | -
1%₹499 Cr5,000,000,000
Reliance Jio Infocomm Limited
Commercial Paper | -
1%₹497 Cr5,000,000,000
Export-Import Bank Of India
Commercial Paper | -
1%₹497 Cr5,000,000,000
182 DTB 28042023
Sovereign Bonds | -
1%₹494 Cr5,000,000,000
↑ 5,000,000,000
Canara Bank
Certificate of Deposit | -
1%₹492 Cr5,000,000,000
↑ 5,000,000,000

3. DSP BlackRock Liquidity Fund

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 CAGR/Annualized return of 6.9% since its launch.  Ranked 36 in Liquid Fund category.  Return for 2022 was 4.8% , 2021 was 3.3% and 2020 was 4.2% .

Below is the key information for DSP BlackRock Liquidity Fund

DSP BlackRock Liquidity Fund
Growth
Launch Date 23 Nov 05
NAV (24 Mar 23) ₹3,182.45 ↑ 0.48   (0.02 %)
Net Assets (Cr) ₹13,583 on 28 Feb 23
Category Debt - Liquid Fund
AMC DSP BlackRock Invmt Managers Pvt. Ltd.
Rating
Risk Low
Expense Ratio 0.24
Sharpe Ratio -1.68
Information Ratio -2.95
Alpha Ratio -0.22
Min Investment 1,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 7.27%
Effective Maturity 1 Month 6 Days
Modified Duration 1 Month 2 Days

Growth of 10,000 investment over the years.

DateValue
28 Feb 18₹10,000
28 Feb 19₹10,749
29 Feb 20₹11,412
28 Feb 21₹11,848
28 Feb 22₹12,242
28 Feb 23₹12,890

DSP BlackRock Liquidity Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹197,169.
Net Profit of ₹17,169
Invest Now

Returns for DSP BlackRock Liquidity Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Mar 23

DurationReturns
1 Month 0.5%
3 Month 1.6%
6 Month 3.2%
1 Year 5.5%
3 Year 4.3%
5 Year 5.2%
10 Year
15 Year
Since launch 6.9%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.8%
2021 3.3%
2020 4.2%
2019 6.5%
2018 7.4%
2017 6.6%
2016 7.6%
2015 8.3%
2014 9%
2013 9.2%
Fund Manager information for DSP BlackRock Liquidity Fund
NameSinceTenure
Kedar Karnik17 Jul 166.55 Yr.
Karan Mundhra31 May 211.67 Yr.

Data below for DSP BlackRock Liquidity Fund as on 28 Feb 23

Asset Allocation
Asset ClassValue
Cash100%
Debt Sector Allocation
SectorValue
Cash Equivalent70.44%
Government13.72%
Corporate9.4%
Securitized0.59%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Treps / Reverse Repo Investments / Corporate Debt Repo
CBLO/Reverse Repo | -
31%₹5,170 Cr
91 DTB 09032023
Sovereign Bonds | -
4%₹747 Cr75,000,000
Small Industries Development Bank Of India
Commercial Paper | -
3%₹495 Cr10,000
National Bank For Agriculture And Rural Development
Commercial Paper | -
3%₹495 Cr10,000
India (Republic of)
- | -
3%₹493 Cr50,000,000
↑ 50,000,000
India (Republic of)
- | -
3%₹492 Cr50,000,000
↑ 50,000,000
91 DTB 16032023
Sovereign Bonds | -
3%₹448 Cr45,000,000
Canara Bank
Certificate of Deposit | -
3%₹446 Cr9,000
Ntpc Limited
Debentures | -
2%₹400 Cr3,800
↑ 300
Indian Bank
Certificate of Deposit | -
2%₹396 Cr8,000

4. Aditya Birla Sun Life Liquid Fund

(Erstwhile Aditya Birla Sun Life Cash Plus Fund)

An Open-ended liquid scheme with the objective to provide reasonable returns at a high level of safety and liquidity through judicious investments in high quality debt and money market instruments.

Aditya Birla Sun Life Liquid Fund is a Debt - Liquid Fund fund was launched on 30 Mar 04. It is a fund with Low risk and has given a CAGR/Annualized return of 7% since its launch.  Ranked 15 in Liquid Fund category.  Return for 2022 was 4.8% , 2021 was 3.3% and 2020 was 4.3% .

Below is the key information for Aditya Birla Sun Life Liquid Fund

Aditya Birla Sun Life Liquid Fund
Growth
Launch Date 30 Mar 04
NAV (24 Mar 23) ₹359.119 ↑ 0.03   (0.01 %)
Net Assets (Cr) ₹28,072 on 28 Feb 23
Category Debt - Liquid Fund
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Low
Expense Ratio 0.33
Sharpe Ratio -1.22
Information Ratio -3.94
Alpha Ratio -0.22
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 7.22%
Effective Maturity 1 Month 2 Days
Modified Duration 1 Month 2 Days

Growth of 10,000 investment over the years.

DateValue
28 Feb 18₹10,000
28 Feb 19₹10,751
29 Feb 20₹11,435
28 Feb 21₹11,884
28 Feb 22₹12,281
28 Feb 23₹12,933

Aditya Birla Sun Life Liquid Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹197,169.
Net Profit of ₹17,169
Invest Now

Returns for Aditya Birla Sun Life Liquid Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Mar 23

DurationReturns
1 Month 0.6%
3 Month 1.7%
6 Month 3.2%
1 Year 5.6%
3 Year 4.3%
5 Year 5.3%
10 Year
15 Year
Since launch 7%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.8%
2021 3.3%
2020 4.3%
2019 6.7%
2018 7.4%
2017 6.7%
2016 7.7%
2015 8.4%
2014 9.2%
2013 9.3%
Fund Manager information for Aditya Birla Sun Life Liquid Fund
NameSinceTenure
Sunaina Cunha15 Jul 1111.56 Yr.
Kaustubh Gupta15 Jul 1111.56 Yr.
Sanjay Pawar1 Jul 220.59 Yr.
Harshil Suvarnkar9 Jun 211.65 Yr.

Data below for Aditya Birla Sun Life Liquid Fund as on 28 Feb 23

Asset Allocation
Asset ClassValue
Cash100%
Debt Sector Allocation
SectorValue
Cash Equivalent71.75%
Government14.76%
Corporate13.49%
Credit Quality
RatingValue
AA1.01%
AAA98.99%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
91 DTB 30032023
Sovereign Bonds | -
26%₹8,524 Cr858,689,700
Net Receivables / (Payables)
CBLO | -
6%-₹2,083 Cr
Bank Of Maharashtra
Certificate of Deposit | -
5%₹1,744 Cr35,000
Union Bank Of India
Certificate of Deposit | -
5%₹1,596 Cr32,000
Reverse Repo
CBLO/Reverse Repo | -
4%₹1,315 Cr
National Bank For Agriculture And Rural Development
Commercial Paper | -
3%₹1,016 Cr20,500
Adani Ports And SPecial Economic Zone Limited
Commercial Paper | -
3%₹995 Cr20,000
Hdfc Bank Limited (27/03/2023) #
Certificate of Deposit | -
2%₹794 Cr8,000,000
↑ 8,000,000
IDFC First Bank Limited
Certificate of Deposit | -
2%₹747 Cr15,000
Uco Bank
Certificate of Deposit | -
2%₹746 Cr15,000

5. IDFC Cash Fund

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

IDFC Cash Fund is a Debt - Liquid Fund fund was launched on 4 Jun 08. It is a fund with Low risk and has given a CAGR/Annualized return of 6.9% since its launch.  Ranked 26 in Liquid Fund category.  Return for 2022 was 4.8% , 2021 was 3.2% and 2020 was 4% .

Below is the key information for IDFC Cash Fund

IDFC Cash Fund
Growth
Launch Date 4 Jun 08
NAV (24 Mar 23) ₹2,695.84 ↑ 0.46   (0.02 %)
Net Assets (Cr) ₹11,962 on 28 Feb 23
Category Debt - Liquid Fund
AMC IDFC Asset Management Company Limited
Rating
Risk Low
Expense Ratio 0.19
Sharpe Ratio -1.93
Information Ratio 0
Alpha Ratio 0
Min Investment 100
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 0%
Effective Maturity
Modified Duration

Growth of 10,000 investment over the years.

DateValue
28 Feb 18₹10,000
28 Feb 19₹10,736
29 Feb 20₹11,385
28 Feb 21₹11,805
28 Feb 22₹12,198
28 Feb 23₹12,841

IDFC Cash Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹197,169.
Net Profit of ₹17,169
Invest Now

Returns for IDFC Cash Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Mar 23

DurationReturns
1 Month 0.5%
3 Month 1.6%
6 Month 3.2%
1 Year 5.5%
3 Year 4.3%
5 Year 5.1%
10 Year
15 Year
Since launch 6.9%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.8%
2021 3.2%
2020 4%
2019 6.3%
2018 7.3%
2017 6.6%
2016 7.6%
2015 8.4%
2014 9.1%
2013 9.2%
Fund Manager information for IDFC Cash Fund
NameSinceTenure
Harshal Joshi15 Sep 157.39 Yr.
Brijesh Shah1 Dec 211.17 Yr.

Data below for IDFC Cash Fund as on 28 Feb 23

Asset Allocation
Asset ClassValue
Cash99.33%
Debt0.67%
Debt Sector Allocation
SectorValue
Cash Equivalent76.66%
Corporate15.04%
Government8.31%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Triparty Repo
CBLO/Reverse Repo | -
38%₹5,623 Cr
Small Industries Development Bank Of India
Commercial Paper | -
3%₹491 Cr50,000,000
↑ 50,000,000
91 DTB 11052023
Sovereign Bonds | -
3%₹399 Cr40,500,000
↑ 40,500,000
Reliance Jio Infocomm Limited
Commercial Paper | -
2%₹348 Cr35,000,000
Small Industries Development Bank Of India
Commercial Paper | -
2%₹344 Cr34,500,000
Canara Bank
Certificate of Deposit | -
2%₹322 Cr32,500,000
↓ -17,500,000
06.75 OD Sdl 2023
Sovereign Bonds | -
2%₹300 Cr30,000,000
↑ 10,000,000
Axis Bank Limited
Certificate of Deposit | -
2%₹299 Cr30,000,000
↑ 10,000,000
National Bank For Agriculture And Rural Development
Commercial Paper | -
2%₹295 Cr30,000,000
↑ 30,000,000
Larsen And Toubro Limited
Debentures | -
2%₹265 Cr26,500,000

6. 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 6.8% since its launch.  Ranked 11 in Liquid Fund category.  Return for 2022 was 4.8% , 2021 was 3.2% and 2020 was 4.3% .

Below is the key information for Nippon India Liquid Fund 

Nippon India Liquid Fund 
Growth
Launch Date 9 Dec 03
NAV (24 Mar 23) ₹5,443.71 ↑ 0.59   (0.01 %)
Net Assets (Cr) ₹25,358 on 28 Feb 23
Category Debt - Liquid Fund
AMC Nippon Life Asset Management Ltd.
Rating
Risk Low
Expense Ratio 0.32
Sharpe Ratio -1.81
Information Ratio 0
Alpha Ratio 0
Min Investment 100
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 7.35%
Effective Maturity 1 Month 16 Days
Modified Duration 1 Month 13 Days

Growth of 10,000 investment over the years.

DateValue
28 Feb 18₹10,000
28 Feb 19₹10,754
29 Feb 20₹11,439
28 Feb 21₹11,884
28 Feb 22₹12,277
28 Feb 23₹12,919

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 ₹197,169.
Net Profit of ₹17,169
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 24 Mar 23

DurationReturns
1 Month 0.5%
3 Month 1.6%
6 Month 3.2%
1 Year 5.5%
3 Year 4.3%
5 Year 5.3%
10 Year
15 Year
Since launch 6.8%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.8%
2021 3.2%
2020 4.3%
2019 6.7%
2018 7.4%
2017 6.7%
2016 7.7%
2015 8.3%
2014 9.1%
2013 9.2%
Fund Manager information for Nippon India Liquid Fund 
NameSinceTenure
Anju Chhajer1 Oct 139.34 Yr.
Siddharth Deb1 Mar 220.92 Yr.
Kinjal Desai25 May 184.69 Yr.
Akshay Sharma1 Dec 220.17 Yr.

Data below for Nippon India Liquid Fund  as on 28 Feb 23

Asset Allocation
Asset ClassValue
Cash100%
Debt Sector Allocation
SectorValue
Cash Equivalent78.61%
Government13.65%
Corporate7.74%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Reverse Repo
CBLO/Reverse Repo | -
12%₹3,402 Cr
91 DTB 16022023
Sovereign Bonds | -
7%₹2,140 Cr214,000,000
↑ 40,000,000
91 DTB 04052023
Sovereign Bonds | -
3%₹986 Cr100,000,000
↑ 100,000,000
Triparty Repo
CBLO/Reverse Repo | -
3%₹961 Cr
National Bank For Agriculture And Rural Development
Commercial Paper | -
3%₹889 Cr18,000
Reliance Ports And Terminals Limited
Commercial Paper | -
3%₹787 Cr16,000
↑ 16,000
Reliance Retail Ventures Limited
Commercial Paper | -
3%₹746 Cr15,000
182 DTB 28042023
Sovereign Bonds | -
3%₹740 Cr75,000,000
↑ 75,000,000
91 DTB 16032023
Sovereign Bonds | -
2%₹682 Cr68,500,000
↓ -94,500,000
Housing Development Finance Corporation Limited
Commercial Paper | -
2%₹547 Cr11,000
↑ 1,000

How to evaluate Liquid Mutual Funds?

When looking for a liquid mutual fund, the past return should not be the only Factor for consideration. Other factors like fund size, track record, credit quality of Underlying securities should also be kept in mind.

1. Investment Plans

Liquid funds come with different plans like a daily dividend plan, weekly dividend plan, monthly dividend plan and growth plans. In the growth option, profits made by the scheme are invested back into it. This results in the NAV (Net Asset Value) of the scheme rising over time. In the dividend option, the profits made by the fund are not re-invested. Dividends are distributed to the investor from time to time. Investors can choose their plan as per their convenience and liquidity needs.

2. Expense Ratio

Mutual funds charge a fee to manage your funds called an expense ratio. As per SEBI norms, the upper limit of expense ratio is 2.25%. In case of liquid funds, they maintain a lower expense ratio to provide relatively higher returns over a short period of time.

3. Investment Horizon

Plan your investment horizon. Liquid funds are exclusively meant to invest surplus cash over a very short period of time that is for 91 days. So, if you have an idle cash, you can invest here for a short period and earn better returns than bank Savings Account. In case you have a longer investment horizon of up to 1 year, then you may consider investing in short duration funds to get relatively higher returns.

Features of Liquid Mutual Funds

Features-of-best-liquid-funds

1. Exit Load Of Liquid Mutual Funds

Considering the fact that liquid mutual funds are short-term investments with a low maturity period, the majority of the funds under this category do not levy any exit load on redemption. Also, if there exists any exit load, it is very nominal and usually not more than a week. Liquid funds generally do not have an exit load given they are very short investment products.

2. Volatility Of Liquid Fund Investment

Generally, the Volatility of liquid funds is low as the investment lasts for a few days to weeks. So, the risk of loss in investment is quite less. However, it is suggested to make a liquid fund investment considering the market condition to avoid the opportunity of loss.

3. Lock-in Period Of Best Liquid Funds

Given that liquid mutual funds are very short-term investment options, liquid funds do not have any lock-in period. Liquid Funds can be invested for a time period as short as one day going upto a couple of weeks.

4. Liquid Fund Returns

Liquid funds are one of the best short-term investments during a high Inflation period. In the high inflation period, the interest rate on the liquid fund is high. Thus, helping liquid mutual funds to earn good returns. The liquid fund returns are usually higher than that of other traditional investments like bank fixed deposits or savings accounts. However, it is suggested to invest in best liquid funds choosing a right option (growth, dividend payout, dividend re-investment) suiting your needs.

5. Liquid Funds Taxation

Generally, liquid fund returns receive in the form of dividends are not taxed in the hands of investors. However, a Dividend Distribution Tax (DDT) of approximately 28% is deducted by the mutual fund company from the dividends. Moreover, for the investors who have opted for growth option, a short-term Capital Gain tax is deducted as per the individual’s tax slab. This tax Deduction is same as that of a savings account.

How to Invest in Liquid Funds Online?

  1. Open Free Investment Account for Lifetime at Fincash.com

  2. Complete your Registration and KYC Process

  3. Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!

    Get Started

Due to the lack of awareness about liquid funds, people don’t invest in them and instead keep huge sums in a savings account. But, it’s never too late to begin something good. So, invest in best liquid funds today!

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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Knhendre, posted on 15 Sep 22 5:05 PM

Good knowledgeable information, you should have to give an example

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