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6 Best Liquid Mutual Funds 2021
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 21 - 22
Fund NAV Net Assets (Cr) 1 MO (%) 3 MO (%) 6 MO (%) 1 YR (%) 2020 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Tata Liquid Fund Growth ₹3,215.45
↑ 0.06 ₹12,917 0.3 0.7 1.5 4 4.3 3.49% 1M 9D 1M 9D Aditya Birla Sun Life Liquid Fund Growth ₹328.349
↑ 0.00 ₹31,306 0.3 0.7 1.6 4 4.3 3.43% 25D 25D Axis Liquid Fund Growth ₹2,266.02
↑ 0.00 ₹23,572 0.3 0.7 1.6 3.9 4.3 3.47% 26D 27D ICICI Prudential Liquid Fund Growth ₹302.159
↑ 0.00 ₹39,319 0.3 0.7 1.6 3.9 4.3 3.51% 21D 23D Nippon India Liquid Fund Growth ₹4,982.8
↑ 0.11 ₹19,338 0.3 0.7 1.5 3.9 4.3 3.48% 1M 10D 1M 12D SBI Liquid Fund Growth ₹3,193.51
↑ 0.08 ₹42,225 0.3 0.7 1.6 3.9 4.2 3.43% 1M 2D 1M 2D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 26 Feb 21 Liquid funds having AUM/Net Assets above 10,000 Crore and managing funds for 5 or more years. Sorted on Last 1 Calendar Year Return.
(Erstwhile 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 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 ICICI Prudential Liquid Plan) To provide reasonable returns, commensurate with low risk while providing a high level of liquidity, through investments made primarily in money market and debt securities. ICICI Prudential Liquid Fund is a Debt - Liquid Fund fund was launched on 17 Nov 05. It is a fund with Low risk and has given a Below is the key information for ICICI Prudential Liquid Fund Returns up to 1 year are on (Erstwhile Reliance Liquid Fund - Treasury Plan) The investment objective of the scheme is to generate optimal returns consistent with moderate levels of risk and high liquidity. Accordingly, investments shall predominantly be made in Debt and Money Market Instruments. Nippon India Liquid Fund is a Debt - Liquid Fund fund was launched on 9 Dec 03. It is a fund with Low risk and has given a Below is the key information for Nippon India Liquid Fund Returns up to 1 year are on (Erstwhile SBI - Premier Liquid Fund) To provide attractive returns to the Magnum/Unit holders either through
periodic dividends or through capital appreciation through an actively
managed portfolio of debt and money market instruments. Income may be
generated through the receipt of coupon payments, the amortization of the
discount on the debt instruments, receipt of dividends or purchase and sale of
securities in the underlying portfolio. SBI Liquid Fund is a Debt - Liquid Fund fund was launched on 22 Mar 07. It is a fund with Low risk and has given a Below is the key information for SBI Liquid Fund Returns up to 1 year are on 1. Tata Liquid Fund
CAGR/Annualized return of 7.3% since its launch. Ranked 18 in Liquid Fund category. Return for 2020 was 4.3% , 2019 was 6.6% and 2018 was 7.4% . Tata Liquid Fund
Growth Launch Date 1 Sep 04 NAV (26 Feb 21) ₹3,215.45 ↑ 0.06 (0.00 %) Net Assets (Cr) ₹12,917 on 31 Jan 21 Category Debt - Liquid Fund AMC Tata Asset Management Limited Rating ☆☆☆☆ Risk Low Expense Ratio 0.34 Sharpe Ratio -0.3 Information Ratio -1.98 Alpha Ratio -0.48 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 3.49% Effective Maturity 1 Month 9 Days Modified Duration 1 Month 9 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 16 ₹10,000 31 Jan 17 ₹10,758 31 Jan 18 ₹11,476 31 Jan 19 ₹12,336 31 Jan 20 ₹13,122 31 Jan 21 ₹13,660 Returns for Tata Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 26 Feb 21 Duration Returns 1 Month 0.3% 3 Month 0.7% 6 Month 1.5% 1 Year 4% 3 Year 5.9% 5 Year 6.4% 10 Year 15 Year Since launch 7.3% Historical performance (Yearly) on absolute basis
Year Returns 2020 4.3% 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% Fund Manager information for Tata Liquid Fund
Name Since Tenure Amit Somani 16 Oct 13 7.3 Yr. Abhishek Sonthalia 6 Feb 20 0.99 Yr. Data below for Tata Liquid Fund as on 31 Jan 21
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 72.38% Corporate 24.14% Government 3.48% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 91 DTB 08042021
Sovereign Bonds | -13% ₹1,616 Cr 162,618,100
↑ 162,618,100 182 DTB 08042021
Sovereign Bonds | -7% ₹934 Cr 94,000,000
↑ 94,000,000 91 DTB11022021
Sovereign Bonds | -5% ₹648 Cr 64,905,500
↑ 64,905,500 364 DTB 08042021
Sovereign Bonds | -5% ₹596 Cr 60,000,000
↑ 60,000,000 364 DTB 29042021
Sovereign Bonds | -4% ₹565 Cr 57,000,000
↑ 57,000,000 364 DTB 25032021
Sovereign Bonds | -2% ₹299 Cr 30,000,000
↑ 30,000,000 182 DTB 04022021
Sovereign Bonds | -2% ₹250 Cr 24,984,500
↓ -71,000,000 91 DTB 22042021
Sovereign Bonds | -1% ₹140 Cr 14,136,500
↑ 14,136,500 7.80% Govt Stock 2021
Sovereign Bonds | -0% ₹10 Cr 1,000,000
↑ 1,000,000 91 DTB 04022021
Sovereign Bonds | -0% ₹4 Cr 443,600
↓ -111,000,000 2. Aditya Birla Sun Life Liquid Fund
CAGR/Annualized return of 7.3% since its launch. Ranked 15 in Liquid Fund category. Return for 2020 was 4.3% , 2019 was 6.7% and 2018 was 7.4% . Aditya Birla Sun Life Liquid Fund
Growth Launch Date 30 Mar 04 NAV (26 Feb 21) ₹328.349 ↑ 0.00 (0.00 %) Net Assets (Cr) ₹31,306 on 31 Jan 21 Category Debt - Liquid Fund AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆ Risk Low Expense Ratio 0.28 Sharpe Ratio -0.46 Information Ratio -2.25 Alpha Ratio -0.46 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 3.43% Effective Maturity 25 Days Modified Duration 25 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 16 ₹10,000 31 Jan 17 ₹10,764 31 Jan 18 ₹11,480 31 Jan 19 ₹12,340 31 Jan 20 ₹13,141 31 Jan 21 ₹13,678 Returns for Aditya Birla Sun Life Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 26 Feb 21 Duration Returns 1 Month 0.3% 3 Month 0.7% 6 Month 1.6% 1 Year 4% 3 Year 5.9% 5 Year 6.4% 10 Year 15 Year Since launch 7.3% Historical performance (Yearly) on absolute basis
Year Returns 2020 4.3% 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% Fund Manager information for Aditya Birla Sun Life Liquid Fund
Name Since Tenure Sunaina Cunha 18 Jun 09 11.63 Yr. Kaustubh Gupta 15 Jul 11 9.56 Yr. Data below for Aditya Birla Sun Life Liquid Fund as on 31 Jan 21
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 68.07% Corporate 29.78% Government 2.15% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 182 DTB 25032021
Sovereign Bonds | -4% ₹1,408 Cr 141,500,000
↑ 141,500,000 182 DTB 04032021
Sovereign Bonds | -2% ₹698 Cr 70,000,000
↑ 50,000,000 182 DTB 11022021
Sovereign Bonds | -2% ₹599 Cr 60,000,000 91 DTB 11032021
Sovereign Bonds | -2% ₹498 Cr 50,000,000 364 DTB 25032021
Sovereign Bonds | -2% ₹498 Cr 50,000,000
↑ 50,000,000 182 DTB 18022021
Sovereign Bonds | -1% ₹369 Cr 37,000,000
↑ 37,000,000 91 DTB11022021
Sovereign Bonds | -1% ₹250 Cr 25,000,000
↑ 25,000,000 Fullerton India Credit Company Limited
Debentures | -1% ₹246 Cr 2,450 364 DTB 18022021
Sovereign Bonds | -1% ₹230 Cr 23,052,500
↑ 23,052,500 7.56% AP SDL 2021
Sovereign Bonds | -1% ₹180 Cr 18,000,000
↑ 18,000,000 3. Axis Liquid Fund
CAGR/Annualized return of 7.5% since its launch. Ranked 21 in Liquid Fund category. Return for 2020 was 4.3% , 2019 was 6.6% and 2018 was 7.5% . Axis Liquid Fund
Growth Launch Date 9 Oct 09 NAV (26 Feb 21) ₹2,266.02 ↑ 0.00 (0.00 %) Net Assets (Cr) ₹23,572 on 31 Jan 21 Category Debt - Liquid Fund AMC Axis Asset Management Company Limited Rating ☆☆☆☆ Risk Low Expense Ratio 0.16 Sharpe Ratio -0.47 Information Ratio 0 Alpha Ratio 0 Min Investment 500 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 3.47% Effective Maturity 27 Days Modified Duration 26 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 16 ₹10,000 31 Jan 17 ₹10,757 31 Jan 18 ₹11,478 31 Jan 19 ₹12,341 31 Jan 20 ₹13,137 31 Jan 21 ₹13,672 Returns for Axis Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 26 Feb 21 Duration Returns 1 Month 0.3% 3 Month 0.7% 6 Month 1.6% 1 Year 3.9% 3 Year 5.9% 5 Year 6.4% 10 Year 15 Year Since launch 7.5% Historical performance (Yearly) on absolute basis
Year Returns 2020 4.3% 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% Fund Manager information for Axis Liquid Fund
Name Since Tenure Devang Shah 5 Nov 12 8.24 Yr. Aditya Pagaria 13 Aug 16 4.47 Yr. Data below for Axis Liquid Fund as on 31 Jan 21
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 76.57% Corporate 23.32% Government 0.11% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 91 DTB 11032021
Sovereign Bonds | -4% ₹1,014 Cr 101,770,300
↓ -85,000,000 364 DTB 18032021
Sovereign Bonds | -4% ₹996 Cr 100,000,000
↑ 100,000,000 364 DTB 25032021
Sovereign Bonds | -3% ₹597 Cr 60,000,000
↑ 60,000,000 364 DTB 15042021
Sovereign Bonds | -2% ₹546 Cr 55,000,000
↑ 55,000,000 91 DTB 25022021
Sovereign Bonds | -2% ₹531 Cr 53,226,700 91 DTB11022021
Sovereign Bonds | -2% ₹500 Cr 50,000,000
↑ 50,000,000 91 DTB 25032021
Sovereign Bonds | -2% ₹498 Cr 50,000,000 182 DTB 18022021
Sovereign Bonds | -2% ₹374 Cr 37,500,000 364 DTB 30032021
Sovereign Bonds | -1% ₹179 Cr 18,000,000
↑ 500,000 91 DTB 04022021
Sovereign Bonds | -0% ₹75 Cr 7,500,000 4. ICICI Prudential Liquid Fund
CAGR/Annualized return of 7.5% since its launch. Ranked 20 in Liquid Fund category. Return for 2020 was 4.3% , 2019 was 6.6% and 2018 was 7.4% . ICICI Prudential Liquid Fund
Growth Launch Date 17 Nov 05 NAV (26 Feb 21) ₹302.159 ↑ 0.00 (0.00 %) Net Assets (Cr) ₹39,319 on 31 Jan 21 Category Debt - Liquid Fund AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Low Expense Ratio 0.26 Sharpe Ratio -0.44 Information Ratio -2.54 Alpha Ratio -0.48 Min Investment 500 Min SIP Investment 99 Exit Load NIL Yield to Maturity 3.51% Effective Maturity 23 Days Modified Duration 21 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 16 ₹10,000 31 Jan 17 ₹10,759 31 Jan 18 ₹11,471 31 Jan 19 ₹12,327 31 Jan 20 ₹13,116 31 Jan 21 ₹13,652 Returns for ICICI Prudential Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 26 Feb 21 Duration Returns 1 Month 0.3% 3 Month 0.7% 6 Month 1.6% 1 Year 3.9% 3 Year 5.9% 5 Year 6.4% 10 Year 15 Year Since launch 7.5% Historical performance (Yearly) on absolute basis
Year Returns 2020 4.3% 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% Fund Manager information for ICICI Prudential Liquid Fund
Name Since Tenure Rahul Goswami 27 Sep 12 8.35 Yr. Rohan Maru 19 Sep 13 7.37 Yr. Data below for ICICI Prudential Liquid Fund as on 31 Jan 21
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 77.42% Corporate 20.17% Government 2.41% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 91 DTB 04022021
Sovereign Bonds | -8% ₹3,014 Cr 301,500,000
↑ 46,500,000 91 DTB11022021
Sovereign Bonds | -6% ₹2,457 Cr 245,935,500
↑ 245,935,500 364 DTB 18032021
Sovereign Bonds | -2% ₹742 Cr 74,500,000
↑ 74,500,000 364 DTB 04022021
Sovereign Bonds | -2% ₹740 Cr 74,000,000 182 DTB 04032021
Sovereign Bonds | -1% ₹499 Cr 50,000,000
↑ 50,000,000 364 DTB 29042021
Sovereign Bonds | -1% ₹496 Cr 50,000,000
↑ 50,000,000 182 DTB 04022021
Sovereign Bonds | -1% ₹250 Cr 25,000,000
↑ 25,000,000 7.80% Govt Stock 2021
Sovereign Bonds | -1% ₹222 Cr 22,000,000
↑ 22,000,000 182 DTB 22042021
Sovereign Bonds | -0% ₹109 Cr 11,000,000
↑ 11,000,000 GOI 15.03.2021 GOV
Sovereign Bonds | -0% ₹100 Cr 10,066,000
↑ 10,066,000 5. Nippon India Liquid Fund
CAGR/Annualized return of 7.1% since its launch. Ranked 11 in Liquid Fund category. Return for 2020 was 4.3% , 2019 was 6.7% and 2018 was 7.4% . Nippon India Liquid Fund
Growth Launch Date 9 Dec 03 NAV (26 Feb 21) ₹4,982.8 ↑ 0.11 (0.00 %) Net Assets (Cr) ₹19,338 on 31 Jan 21 Category Debt - Liquid Fund AMC Nippon Life Asset Management Ltd. Rating ☆☆☆☆ Risk Low Expense Ratio 0.26 Sharpe Ratio -0.63 Information Ratio -2.2 Alpha Ratio -0.49 Min Investment 100 Min SIP Investment 100 Exit Load NIL Yield to Maturity 3.48% Effective Maturity 1 Month 12 Days Modified Duration 1 Month 10 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 16 ₹10,000 31 Jan 17 ₹10,759 31 Jan 18 ₹11,476 31 Jan 19 ₹12,338 31 Jan 20 ₹13,141 31 Jan 21 ₹13,673 Returns for Nippon India Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 26 Feb 21 Duration Returns 1 Month 0.3% 3 Month 0.7% 6 Month 1.5% 1 Year 3.9% 3 Year 5.9% 5 Year 6.4% 10 Year 15 Year Since launch 7.1% Historical performance (Yearly) on absolute basis
Year Returns 2020 4.3% 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% Fund Manager information for Nippon India Liquid Fund
Name Since Tenure Anju Chhajer 1 Oct 13 7.34 Yr. Kinjal Desai 25 May 18 2.69 Yr. Data below for Nippon India Liquid Fund as on 31 Jan 21
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 60.54% Corporate 37.27% Government 2.19% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 91 DTB 18032021
Sovereign Bonds | -9% ₹1,808 Cr 181,500,000
↑ 1,500,000 91 DTB 25032021
Sovereign Bonds | -7% ₹1,394 Cr 140,000,000 91 DTB 15042021
Sovereign Bonds | -5% ₹993 Cr 100,000,000
↑ 100,000,000 91 DTB 11032021
Sovereign Bonds | -3% ₹598 Cr 60,000,000 182 DTB 25032021
Sovereign Bonds | -3% ₹498 Cr 50,000,000
↑ 50,000,000 364 DTB 29042021
Sovereign Bonds | -2% ₹367 Cr 37,000,000
↑ 37,000,000 7.80% Govt Stock 2021
Sovereign Bonds | -2% ₹298 Cr 29,500,000
↑ 29,500,000 182 DTB 04032021
Sovereign Bonds | -2% ₹294 Cr 29,500,000
↓ -5,500,000 182 DTB 11032021
Sovereign Bonds | -1% ₹289 Cr 29,000,000 91 DTB 29042021
Sovereign Bonds | -1% ₹223 Cr 22,500,000
↑ 22,500,000 6. SBI Liquid Fund
CAGR/Annualized return of 7.3% since its launch. Ranked 40 in Liquid Fund category. Return for 2020 was 4.2% , 2019 was 6.5% and 2018 was 7.3% . SBI Liquid Fund
Growth Launch Date 22 Mar 07 NAV (26 Feb 21) ₹3,193.51 ↑ 0.08 (0.00 %) Net Assets (Cr) ₹42,225 on 31 Jan 21 Category Debt - Liquid Fund AMC SBI Funds Management Private Limited Rating ☆☆☆ Risk Low Expense Ratio 0.25 Sharpe Ratio -0.98 Information Ratio -3.44 Alpha Ratio -0.52 Min Investment 50,000 Min SIP Investment 2,000 Exit Load NIL Yield to Maturity 3.43% Effective Maturity 1 Month 2 Days Modified Duration 1 Month 2 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 16 ₹10,000 31 Jan 17 ₹10,751 31 Jan 18 ₹11,455 31 Jan 19 ₹12,300 31 Jan 20 ₹13,076 31 Jan 21 ₹13,598 Returns for SBI Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 26 Feb 21 Duration Returns 1 Month 0.3% 3 Month 0.7% 6 Month 1.6% 1 Year 3.9% 3 Year 5.8% 5 Year 6.3% 10 Year 15 Year Since launch 7.3% Historical performance (Yearly) on absolute basis
Year Returns 2020 4.2% 2019 6.5% 2018 7.3% 2017 6.6% 2016 7.6% 2015 8.3% 2014 9% 2013 9.2% 2012 9.6% 2011 9% Fund Manager information for SBI Liquid Fund
Name Since Tenure R. Arun 7 May 18 2.74 Yr. Data below for SBI Liquid Fund as on 31 Jan 21
Asset Allocation
Asset Class Value Cash 100% Debt Sector Allocation
Sector Value Cash Equivalent 70.15% Corporate 25.33% Government 4.52% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 91 DTB 01042021
Sovereign Bonds | -8% ₹3,171 Cr 318,773,100
↓ -27,000,000 91 DTB 04032021
Sovereign Bonds | -6% ₹2,345 Cr 235,098,700 91 DTB 25032021
Sovereign Bonds | -5% ₹1,991 Cr 200,000,000 91 DTB 11032021
Sovereign Bonds | -4% ₹1,495 Cr 150,000,000 182 DTB 25032021
Sovereign Bonds | -3% ₹1,294 Cr 130,000,000
↑ 130,000,000 91 DTB 18032021
Sovereign Bonds | -2% ₹697 Cr 70,000,000 91 DTB 04022021
Sovereign Bonds | -1% ₹525 Cr 52,500,000
↓ -2,500,000 364 DTB 18032021
Sovereign Bonds | -1% ₹513 Cr 51,500,000
↑ 51,500,000 364 DTB 25022021
Sovereign Bonds | -1% ₹504 Cr 50,500,000
↑ 50,500,000 182 DTB 11032021
Sovereign Bonds | -1% ₹399 Cr 40,000,000
How to evaluate Liquid Mutual Funds?
When looking for a liquid mutual fund, the past return should not be the only Factor for consideration. Other factors like fund size, track record, credit quality of underlying securities should also be kept in mind.
1. Investment Plans
Liquid funds come with different plans like a daily dividend plan, weekly dividend plan, monthly dividend plan and growth plans. In the growth option, profits made by the scheme are invested back into it. This results in the NAV (Net Asset Value) of the scheme rising over time. In the dividend option, the profits made by the fund are not re-invested. Dividends are distributed to the investor from time to time. Investors can choose their plan as per their convenience and liquidity needs.
2. Expense Ratio
Mutual funds charge a fee to manage your funds called an expense ratio. As per SEBI norms, the upper limit of expense ratio is 2.25%. In case of liquid funds, they maintain a lower expense ratio to provide relatively higher returns over a short period of time.
3. Investment Horizon
Plan your investment horizon. Liquid funds are exclusively meant to invest surplus cash over a very short period of time that is for 91 days. So, if you have an idle cash, you can invest here for a short period and earn better returns than bank Savings Account. In case you have a longer investment horizon of up to 1 year, then you may consider investing in short duration funds to get relatively higher returns.
Features of Liquid Mutual Funds
1. Exit Load Of Liquid Mutual Funds
Considering the fact that liquid mutual funds are short-term investments with a low maturity period, the majority of the funds under this category do not levy any exit load on redemption. Also, if there exists any exit load, it is very nominal and usually not more than a week. Liquid funds generally do not have an exit load given they are very short investment products.
2. Volatility Of Liquid Fund Investment
Generally, the volatility of liquid funds is low as the investment lasts for a few days to weeks. So, the risk of loss in investment is quite less. However, it is suggested to make a liquid fund investment considering the market condition to avoid the opportunity of loss.
3. Lock-in Period Of Best Liquid Funds
Given that liquid mutual funds are very short-term investment options, liquid funds do not have any lock-in period. Liquid Funds can be invested for a time period as short as one day going upto a couple of weeks.
4. Liquid Fund Returns
Liquid funds are one of the best short-term investments during a high Inflation period. In the high inflation period, the interest rate on the liquid fund is high. Thus, helping liquid mutual funds to earn good returns. The liquid fund returns are usually higher than that of other traditional investments like bank fixed deposits or savings accounts. However, it is suggested to invest in best liquid funds choosing a right option (growth, dividend payout, dividend re-investment) suiting your needs.
5. Liquid Funds Taxation
Generally, liquid fund returns receive in the form of dividends are not taxed in the hands of investors. However, a Dividend Distribution Tax (DDT) of approximately 28% is deducted by the mutual fund company from the dividends. Moreover, for the investors who have opted for growth option, a short-term Capital Gain tax is deducted as per the individual’s tax slab. This tax Deduction is same as that of a savings account.
How to Invest in Liquid Funds Online?
Open Free Investment Account for Lifetime at Fincash.com
Complete your Registration and KYC Process
Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!
Due to the lack of awareness about liquid funds, people don’t invest in them and instead keep huge sums in a savings account. But, it’s never too late to begin something good. So, invest in best liquid funds today!
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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