Liquid Mutual Funds are essentially money market (debt) funds that invest in small tenure money market instruments including treasury bills, term deposits, certificate of deposits, commercial papers etc. Generally, liquid Mutual Funds are options to invest your money for small durations. The securities that are part of Liquid Funds have a maturity of fewer than 91 days. Liquid funds have no lock-in period so the assets invested are not bound for long, thus keep your money available. Liquid fund returns are volatile as they are dependent on the fund performance in the financial market. Selecting the best liquid fund is a difficult task, however, one can use certain parameters to judge them.
The basic parameters that can be used to select Liquid Mutual Funds are as follows:
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Fund Selection Methodology used to find 50 funds
Looking at returns at various liquid funds:
Fund NAV Net Assets (Cr) 1 MO (%) 3 MO (%) 6 MO (%) 1 YR (%) 2024 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity IDBI Liquid Fund Growth ₹2,454.04
↑ 0.35 ₹503 0.5 1.7 3.4 6.6 6.66% 1M 7D 1M 10D BOI AXA Liquid Fund Growth ₹3,166.46
↑ 0.51 ₹1,611 0.5 1.6 3.1 6.3 6.6 7.3% 1M 20D 1M 20D Edelweiss Liquid Fund Growth ₹3,514.9
↑ 0.56 ₹8,877 0.5 1.6 3.1 6.3 6.5 7.42% 2M 8D 2M 8D Axis Liquid Fund Growth ₹3,060.65
↑ 0.51 ₹30,188 0.5 1.6 3.1 6.3 6.6 7.77% 2M 1D 2M 5D DSP Liquidity Fund Growth ₹3,923.79
↑ 0.65 ₹16,866 0.5 1.6 3.1 6.2 6.5 7.48% 1M 28D 2M 1D UTI Liquid Cash Plan Growth ₹4,508.4
↑ 0.78 ₹19,763 0.5 1.6 3.1 6.2 6.5 6.03% 1M 2D 1M 2D Canara Robeco Liquid Growth ₹3,308.67
↑ 0.55 ₹4,857 0.5 1.6 3.1 6.2 6.5 7.46% 1M 30D 2M 4D Aditya Birla Sun Life Liquid Fund Growth ₹442.803
↑ 0.07 ₹43,022 0.5 1.6 3.1 6.2 6.5 7.73% 2M 5D 2M 5D Mahindra Liquid Fund Growth ₹1,788.23
↑ 0.29 ₹1,012 0.5 1.6 3.1 6.2 6.5 7.58% 1M 23D 1M 26D Invesco India Liquid Fund Growth ₹3,776.68
↑ 0.61 ₹11,723 0.5 1.6 3.1 6.2 6.5 7.46% 2M 6D 2M 6D PGIM India Insta Cash Fund Growth ₹357.704
↑ 0.05 ₹650 0.5 1.6 3.1 6.2 6.5 5.89% 1M 3D 1M 6D Tata Liquid Fund Growth ₹4,327.19
↑ 0.76 ₹22,316 0.5 1.6 3.1 6.2 6.5 6.21% 1M 7D 1M 7D Nippon India Liquid Fund Growth ₹6,704.81
↑ 1.14 ₹25,756 0.5 1.6 3.1 6.2 6.5 6.66% 1M 21D 1M 25D HDFC Liquid Fund Growth ₹5,390.79
↑ 0.94 ₹53,982 0.5 1.6 3.1 6.2 6.5 7.38% 2M 1D 2M 7D Indiabulls Liquid Fund Growth ₹2,657.01
↑ 0.49 ₹162 0.5 1.6 3.1 6.2 6.6 7.48% LIC MF Liquid Fund Growth ₹4,966.23
↑ 0.78 ₹11,106 0.5 1.6 3.1 6.2 6.4 7.65% 2M 1D 2M 1D Mirae Asset Cash Management Fund Growth ₹2,880.18
↑ 0.50 ₹10,562 0.5 1.6 3.1 6.2 6.5 6.35% 1M 17D 1M 18D Kotak Liquid Fund Growth ₹5,551.69
↑ 0.80 ₹33,309 0.5 1.6 3.1 6.2 6.5 7.64% 2M 8D 2M 8D ICICI Prudential Liquid Fund Growth ₹406.587
↑ 0.07 ₹42,888 0.5 1.6 3.1 6.2 6.5 7.72% 1M 25D 2M 1D SBI Liquid Fund Growth ₹4,292.93
↑ 0.69 ₹57,891 0.5 1.6 3.1 6.2 6.4 7.58% 2M 1D 2M 5D Baroda Pioneer Liquid Fund Growth ₹3,157.71
↑ 0.50 ₹8,599 0.5 1.6 3.1 6.1 6.4 7.6% 1M 26D 1M 26D Bandhan Cash Fund Growth ₹3,317.12
↑ 0.54 ₹12,083 0.5 1.6 3.1 6.1 6.4 7.32% 2M 5D 2M 6D JM Liquid Fund Growth ₹74.8935
↑ 0.01 ₹2,567 0.5 1.6 3 6.1 6.4 6.07% 1M 5D 1M 8D IIFL Liquid Fund Growth ₹2,112.49
↑ 0.38 ₹1,177 0.5 1.6 3.1 6 6.3 7.18% 1M 22D 1M 26D Sundaram Money Fund Growth ₹44.1929
↑ 0.00 ₹3,144 0.3 0.8 1.7 3.3 3.5% 1M 2D 1M 2D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 28 Jul 23 Research Highlights & Commentary of 25 Funds showcased
Commentary IDBI Liquid Fund BOI AXA Liquid Fund Edelweiss Liquid Fund Axis Liquid Fund DSP Liquidity Fund UTI Liquid Cash Plan Canara Robeco Liquid Aditya Birla Sun Life Liquid Fund Mahindra Liquid Fund Invesco India Liquid Fund PGIM India Insta Cash Fund Tata Liquid Fund Nippon India Liquid Fund HDFC Liquid Fund Indiabulls Liquid Fund LIC MF Liquid Fund Mirae Asset Cash Management Fund Kotak Liquid Fund ICICI Prudential Liquid Fund SBI Liquid Fund Baroda Pioneer Liquid Fund Bandhan Cash Fund JM Liquid Fund IIFL Liquid Fund Sundaram Money Fund Point 1 Bottom quartile AUM (₹503 Cr). Bottom quartile AUM (₹1,611 Cr). Lower mid AUM (₹8,877 Cr). Top quartile AUM (₹30,188 Cr). Upper mid AUM (₹16,866 Cr). Upper mid AUM (₹19,763 Cr). Lower mid AUM (₹4,857 Cr). Top quartile AUM (₹43,022 Cr). Bottom quartile AUM (₹1,012 Cr). Upper mid AUM (₹11,723 Cr). Bottom quartile AUM (₹650 Cr). Upper mid AUM (₹22,316 Cr). Upper mid AUM (₹25,756 Cr). Top quartile AUM (₹53,982 Cr). Bottom quartile AUM (₹162 Cr). Lower mid AUM (₹11,106 Cr). Lower mid AUM (₹10,562 Cr). Top quartile AUM (₹33,309 Cr). Top quartile AUM (₹42,888 Cr). Highest AUM (₹57,891 Cr). Lower mid AUM (₹8,599 Cr). Upper mid AUM (₹12,083 Cr). Bottom quartile AUM (₹2,567 Cr). Bottom quartile AUM (₹1,177 Cr). Lower mid AUM (₹3,144 Cr). Point 2 Established history (15+ yrs). Established history (17+ yrs). Established history (18+ yrs). Established history (16+ yrs). Established history (20+ yrs). Established history (22+ yrs). Established history (17+ yrs). Established history (22+ yrs). Established history (9+ yrs). Established history (19+ yrs). Established history (18+ yrs). Established history (21+ yrs). Established history (22+ yrs). Established history (25+ yrs). Established history (14+ yrs). Established history (24+ yrs). Established history (17+ yrs). Established history (22+ yrs). Established history (20+ yrs). Established history (19+ yrs). Established history (17+ yrs). Established history (17+ yrs). Oldest track record among peers (28 yrs). Established history (12+ yrs). Established history (20+ yrs). Point 3 Rating: 3★ (lower mid). Rating: 3★ (lower mid). Rating: 2★ (bottom quartile). Rating: 4★ (top quartile). Rating: 3★ (bottom quartile). Rating: 3★ (upper mid). Rating: 3★ (upper mid). Rating: 4★ (top quartile). Not Rated. Rating: 4★ (upper mid). Rating: 5★ (top quartile). Rating: 4★ (upper mid). Rating: 4★ (top quartile). Rating: 3★ (lower mid). Rating: 5★ (top quartile). Rating: 3★ (lower mid). Rating: 2★ (bottom quartile). Rating: 3★ (lower mid). Rating: 4★ (upper mid). Rating: 3★ (bottom quartile). Rating: 4★ (upper mid). Rating: 3★ (lower mid). Top rated. Not Rated. Rating: 3★ (bottom quartile). Point 4 Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Point 5 1Y return: 6.55% (top quartile). 1Y return: 6.27% (top quartile). 1Y return: 6.26% (top quartile). 1Y return: 6.25% (top quartile). 1Y return: 6.24% (top quartile). 1Y return: 6.22% (top quartile). 1Y return: 6.21% (upper mid). 1Y return: 6.21% (upper mid). 1Y return: 6.21% (upper mid). 1Y return: 6.21% (upper mid). 1Y return: 6.20% (upper mid). 1Y return: 6.20% (upper mid). 1Y return: 6.19% (lower mid). 1Y return: 6.19% (lower mid). 1Y return: 6.19% (lower mid). 1Y return: 6.17% (lower mid). 1Y return: 6.17% (lower mid). 1Y return: 6.17% (lower mid). 1Y return: 6.15% (bottom quartile). 1Y return: 6.15% (bottom quartile). 1Y return: 6.14% (bottom quartile). 1Y return: 6.13% (bottom quartile). 1Y return: 6.09% (bottom quartile). 1Y return: 6.02% (bottom quartile). 1Y return: 3.29% (bottom quartile). Point 6 1M return: 0.53% (top quartile). 1M return: 0.45% (bottom quartile). 1M return: 0.49% (top quartile). 1M return: 0.49% (top quartile). 1M return: 0.49% (top quartile). 1M return: 0.48% (upper mid). 1M return: 0.45% (bottom quartile). 1M return: 0.48% (upper mid). 1M return: 0.45% (bottom quartile). 1M return: 0.48% (upper mid). 1M return: 0.48% (lower mid). 1M return: 0.49% (top quartile). 1M return: 0.48% (upper mid). 1M return: 0.47% (bottom quartile). 1M return: 0.47% (bottom quartile). 1M return: 0.48% (lower mid). 1M return: 0.48% (lower mid). 1M return: 0.47% (lower mid). 1M return: 0.47% (lower mid). 1M return: 0.47% (lower mid). 1M return: 0.49% (top quartile). 1M return: 0.48% (upper mid). 1M return: 0.48% (upper mid). 1M return: 0.47% (bottom quartile). 1M return: 0.29% (bottom quartile). Point 7 Sharpe: 0.20 (bottom quartile). Sharpe: 3.46 (top quartile). Sharpe: 3.06 (top quartile). Sharpe: 3.16 (top quartile). Sharpe: 3.03 (top quartile). Sharpe: 3.05 (top quartile). Sharpe: 2.53 (lower mid). Sharpe: 2.95 (upper mid). Sharpe: 2.77 (upper mid). Sharpe: 3.15 (top quartile). Sharpe: 2.92 (upper mid). Sharpe: 2.94 (upper mid). Sharpe: 2.51 (bottom quartile). Sharpe: 2.70 (upper mid). Sharpe: 2.65 (lower mid). Sharpe: 2.51 (lower mid). Sharpe: 2.60 (lower mid). Sharpe: 2.60 (lower mid). Sharpe: 2.87 (upper mid). Sharpe: 2.48 (bottom quartile). Sharpe: 2.67 (lower mid). Sharpe: 2.21 (bottom quartile). Sharpe: 2.05 (bottom quartile). Sharpe: 1.29 (bottom quartile). Sharpe: -3.87 (bottom quartile). Point 8 Information ratio: -5.96 (bottom quartile). Information ratio: 1.76 (top quartile). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (top quartile). Information ratio: 0.00 (top quartile). Information ratio: 0.00 (top quartile). Information ratio: 0.48 (top quartile). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (upper mid). Information ratio: -0.02 (lower mid). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (top quartile). Information ratio: -0.24 (bottom quartile). Information ratio: -0.15 (bottom quartile). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (lower mid). Information ratio: -0.18 (bottom quartile). Information ratio: 0.00 (lower mid). Information ratio: -0.80 (bottom quartile). Information ratio: 0.00 (upper mid). Information ratio: -1.47 (bottom quartile). Information ratio: -2.08 (bottom quartile). Information ratio: 0.00 (upper mid). Point 9 Yield to maturity (debt): 6.66% (bottom quartile). Yield to maturity (debt): 7.30% (lower mid). Yield to maturity (debt): 7.42% (lower mid). Yield to maturity (debt): 7.77% (top quartile). Yield to maturity (debt): 7.48% (upper mid). Yield to maturity (debt): 6.03% (bottom quartile). Yield to maturity (debt): 7.46% (upper mid). Yield to maturity (debt): 7.73% (top quartile). Yield to maturity (debt): 7.58% (upper mid). Yield to maturity (debt): 7.46% (upper mid). Yield to maturity (debt): 5.89% (bottom quartile). Yield to maturity (debt): 6.21% (bottom quartile). Yield to maturity (debt): 6.66% (lower mid). Yield to maturity (debt): 7.38% (lower mid). Yield to maturity (debt): 7.48% (upper mid). Yield to maturity (debt): 7.65% (top quartile). Yield to maturity (debt): 6.35% (bottom quartile). Yield to maturity (debt): 7.64% (top quartile). Yield to maturity (debt): 7.72% (top quartile). Yield to maturity (debt): 7.58% (upper mid). Yield to maturity (debt): 7.60% (top quartile). Yield to maturity (debt): 7.32% (lower mid). Yield to maturity (debt): 6.07% (bottom quartile). Yield to maturity (debt): 7.18% (lower mid). Yield to maturity (debt): 3.50% (bottom quartile). Point 10 Modified duration: 0.10 yrs (top quartile). Modified duration: 0.14 yrs (upper mid). Modified duration: 0.19 yrs (bottom quartile). Modified duration: 0.17 yrs (bottom quartile). Modified duration: 0.16 yrs (lower mid). Modified duration: 0.09 yrs (top quartile). Modified duration: 0.17 yrs (lower mid). Modified duration: 0.18 yrs (bottom quartile). Modified duration: 0.15 yrs (upper mid). Modified duration: 0.18 yrs (bottom quartile). Modified duration: 0.09 yrs (top quartile). Modified duration: 0.10 yrs (upper mid). Modified duration: 0.14 yrs (upper mid). Modified duration: 0.17 yrs (lower mid). Modified duration: 0.00 yrs (top quartile). Modified duration: 0.17 yrs (lower mid). Modified duration: 0.13 yrs (upper mid). Modified duration: 0.19 yrs (bottom quartile). Modified duration: 0.15 yrs (lower mid). Modified duration: 0.17 yrs (bottom quartile). Modified duration: 0.16 yrs (lower mid). Modified duration: 0.18 yrs (bottom quartile). Modified duration: 0.10 yrs (top quartile). Modified duration: 0.15 yrs (upper mid). Modified duration: 0.09 yrs (top quartile). IDBI Liquid Fund
BOI AXA Liquid Fund
Edelweiss Liquid Fund
Axis Liquid Fund
DSP Liquidity Fund
UTI Liquid Cash Plan
Canara Robeco Liquid
Aditya Birla Sun Life Liquid Fund
Mahindra Liquid Fund
Invesco India Liquid Fund
PGIM India Insta Cash Fund
Tata Liquid Fund
Nippon India Liquid Fund
HDFC Liquid Fund
Indiabulls Liquid Fund
LIC MF Liquid Fund
Mirae Asset Cash Management Fund
Kotak Liquid Fund
ICICI Prudential Liquid Fund
SBI Liquid Fund
Baroda Pioneer Liquid Fund
Bandhan Cash Fund
JM Liquid Fund
IIFL Liquid Fund
Sundaram Money Fund
The portfolio of liquid Mutual Funds contains securities that have a residual maturity of fewer than 91 days. While one can go and talk about credit quality (in simple words, how good are the securities in the portfolio) and try to differentiate portfolios, however, the real experience is that, unless there are real issues with the portfolio carrying some very bad quality securities, Liquid funds should not be an issue. Till date, there has been no known default in liquid fund portfolios and companies don’t usually default on the short maturity papers. However, having said the above the portfolio of the fund would give ideas on the yield of the fund and its subsequent performance. It’s often said “past performance is not an indicator of future performance” and for liquid mutual funds, if one were to try to do some projections, all they have to do is to look at the portfolio. The kind of securities (Commercial Papers (CPs), Certificate of Deposits(CDs) etc.), credit quality and the yield gives an idea of what the return profile of the fund could be. The portfolio quality is a good indicator of the performance of the liquid fund. The maturity of all liquid Mutual Funds is usually a couple of days and much less than 91 days. In most cases it is similar.
Fund NAV Net Assets (Cr) 1 MO (%) 3 MO (%) 6 MO (%) 1 YR (%) 2024 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity IDBI Liquid Fund Growth ₹2,454.04
↑ 0.35 ₹503 0.5 1.7 3.4 6.6 6.66% 1M 7D 1M 10D BOI AXA Liquid Fund Growth ₹3,166.46
↑ 0.51 ₹1,611 0.5 1.6 3.1 6.3 6.6 7.3% 1M 20D 1M 20D Edelweiss Liquid Fund Growth ₹3,514.9
↑ 0.56 ₹8,877 0.5 1.6 3.1 6.3 6.5 7.42% 2M 8D 2M 8D Axis Liquid Fund Growth ₹3,060.65
↑ 0.51 ₹30,188 0.5 1.6 3.1 6.3 6.6 7.77% 2M 1D 2M 5D DSP Liquidity Fund Growth ₹3,923.79
↑ 0.65 ₹16,866 0.5 1.6 3.1 6.2 6.5 7.48% 1M 28D 2M 1D UTI Liquid Cash Plan Growth ₹4,508.4
↑ 0.78 ₹19,763 0.5 1.6 3.1 6.2 6.5 6.03% 1M 2D 1M 2D Canara Robeco Liquid Growth ₹3,308.67
↑ 0.55 ₹4,857 0.5 1.6 3.1 6.2 6.5 7.46% 1M 30D 2M 4D Aditya Birla Sun Life Liquid Fund Growth ₹442.803
↑ 0.07 ₹43,022 0.5 1.6 3.1 6.2 6.5 7.73% 2M 5D 2M 5D Mahindra Liquid Fund Growth ₹1,788.23
↑ 0.29 ₹1,012 0.5 1.6 3.1 6.2 6.5 7.58% 1M 23D 1M 26D Invesco India Liquid Fund Growth ₹3,776.68
↑ 0.61 ₹11,723 0.5 1.6 3.1 6.2 6.5 7.46% 2M 6D 2M 6D PGIM India Insta Cash Fund Growth ₹357.704
↑ 0.05 ₹650 0.5 1.6 3.1 6.2 6.5 5.89% 1M 3D 1M 6D Tata Liquid Fund Growth ₹4,327.19
↑ 0.76 ₹22,316 0.5 1.6 3.1 6.2 6.5 6.21% 1M 7D 1M 7D Nippon India Liquid Fund Growth ₹6,704.81
↑ 1.14 ₹25,756 0.5 1.6 3.1 6.2 6.5 6.66% 1M 21D 1M 25D HDFC Liquid Fund Growth ₹5,390.79
↑ 0.94 ₹53,982 0.5 1.6 3.1 6.2 6.5 7.38% 2M 1D 2M 7D Indiabulls Liquid Fund Growth ₹2,657.01
↑ 0.49 ₹162 0.5 1.6 3.1 6.2 6.6 7.48% LIC MF Liquid Fund Growth ₹4,966.23
↑ 0.78 ₹11,106 0.5 1.6 3.1 6.2 6.4 7.65% 2M 1D 2M 1D Mirae Asset Cash Management Fund Growth ₹2,880.18
↑ 0.50 ₹10,562 0.5 1.6 3.1 6.2 6.5 6.35% 1M 17D 1M 18D Kotak Liquid Fund Growth ₹5,551.69
↑ 0.80 ₹33,309 0.5 1.6 3.1 6.2 6.5 7.64% 2M 8D 2M 8D ICICI Prudential Liquid Fund Growth ₹406.587
↑ 0.07 ₹42,888 0.5 1.6 3.1 6.2 6.5 7.72% 1M 25D 2M 1D SBI Liquid Fund Growth ₹4,292.93
↑ 0.69 ₹57,891 0.5 1.6 3.1 6.2 6.4 7.58% 2M 1D 2M 5D Baroda Pioneer Liquid Fund Growth ₹3,157.71
↑ 0.50 ₹8,599 0.5 1.6 3.1 6.1 6.4 7.6% 1M 26D 1M 26D Bandhan Cash Fund Growth ₹3,317.12
↑ 0.54 ₹12,083 0.5 1.6 3.1 6.1 6.4 7.32% 2M 5D 2M 6D JM Liquid Fund Growth ₹74.8935
↑ 0.01 ₹2,567 0.5 1.6 3 6.1 6.4 6.07% 1M 5D 1M 8D IIFL Liquid Fund Growth ₹2,112.49
↑ 0.38 ₹1,177 0.5 1.6 3.1 6 6.3 7.18% 1M 22D 1M 26D Sundaram Money Fund Growth ₹44.1929
↑ 0.00 ₹3,144 0.3 0.8 1.7 3.3 3.5% 1M 2D 1M 2D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 28 Jul 23 Research Highlights & Commentary of 25 Funds showcased
Commentary IDBI Liquid Fund BOI AXA Liquid Fund Edelweiss Liquid Fund Axis Liquid Fund DSP Liquidity Fund UTI Liquid Cash Plan Canara Robeco Liquid Aditya Birla Sun Life Liquid Fund Mahindra Liquid Fund Invesco India Liquid Fund PGIM India Insta Cash Fund Tata Liquid Fund Nippon India Liquid Fund HDFC Liquid Fund Indiabulls Liquid Fund LIC MF Liquid Fund Mirae Asset Cash Management Fund Kotak Liquid Fund ICICI Prudential Liquid Fund SBI Liquid Fund Baroda Pioneer Liquid Fund Bandhan Cash Fund JM Liquid Fund IIFL Liquid Fund Sundaram Money Fund Point 1 Bottom quartile AUM (₹503 Cr). Bottom quartile AUM (₹1,611 Cr). Lower mid AUM (₹8,877 Cr). Top quartile AUM (₹30,188 Cr). Upper mid AUM (₹16,866 Cr). Upper mid AUM (₹19,763 Cr). Lower mid AUM (₹4,857 Cr). Top quartile AUM (₹43,022 Cr). Bottom quartile AUM (₹1,012 Cr). Upper mid AUM (₹11,723 Cr). Bottom quartile AUM (₹650 Cr). Upper mid AUM (₹22,316 Cr). Upper mid AUM (₹25,756 Cr). Top quartile AUM (₹53,982 Cr). Bottom quartile AUM (₹162 Cr). Lower mid AUM (₹11,106 Cr). Lower mid AUM (₹10,562 Cr). Top quartile AUM (₹33,309 Cr). Top quartile AUM (₹42,888 Cr). Highest AUM (₹57,891 Cr). Lower mid AUM (₹8,599 Cr). Upper mid AUM (₹12,083 Cr). Bottom quartile AUM (₹2,567 Cr). Bottom quartile AUM (₹1,177 Cr). Lower mid AUM (₹3,144 Cr). Point 2 Established history (15+ yrs). Established history (17+ yrs). Established history (18+ yrs). Established history (16+ yrs). Established history (20+ yrs). Established history (22+ yrs). Established history (17+ yrs). Established history (22+ yrs). Established history (9+ yrs). Established history (19+ yrs). Established history (18+ yrs). Established history (21+ yrs). Established history (22+ yrs). Established history (25+ yrs). Established history (14+ yrs). Established history (24+ yrs). Established history (17+ yrs). Established history (22+ yrs). Established history (20+ yrs). Established history (19+ yrs). Established history (17+ yrs). Established history (17+ yrs). Oldest track record among peers (28 yrs). Established history (12+ yrs). Established history (20+ yrs). Point 3 Rating: 3★ (lower mid). Rating: 3★ (lower mid). Rating: 2★ (bottom quartile). Rating: 4★ (top quartile). Rating: 3★ (bottom quartile). Rating: 3★ (upper mid). Rating: 3★ (upper mid). Rating: 4★ (top quartile). Not Rated. Rating: 4★ (upper mid). Rating: 5★ (top quartile). Rating: 4★ (upper mid). Rating: 4★ (top quartile). Rating: 3★ (lower mid). Rating: 5★ (top quartile). Rating: 3★ (lower mid). Rating: 2★ (bottom quartile). Rating: 3★ (lower mid). Rating: 4★ (upper mid). Rating: 3★ (bottom quartile). Rating: 4★ (upper mid). Rating: 3★ (lower mid). Top rated. Not Rated. Rating: 3★ (bottom quartile). Point 4 Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Point 5 1Y return: 6.55% (top quartile). 1Y return: 6.27% (top quartile). 1Y return: 6.26% (top quartile). 1Y return: 6.25% (top quartile). 1Y return: 6.24% (top quartile). 1Y return: 6.22% (top quartile). 1Y return: 6.21% (upper mid). 1Y return: 6.21% (upper mid). 1Y return: 6.21% (upper mid). 1Y return: 6.21% (upper mid). 1Y return: 6.20% (upper mid). 1Y return: 6.20% (upper mid). 1Y return: 6.19% (lower mid). 1Y return: 6.19% (lower mid). 1Y return: 6.19% (lower mid). 1Y return: 6.17% (lower mid). 1Y return: 6.17% (lower mid). 1Y return: 6.17% (lower mid). 1Y return: 6.15% (bottom quartile). 1Y return: 6.15% (bottom quartile). 1Y return: 6.14% (bottom quartile). 1Y return: 6.13% (bottom quartile). 1Y return: 6.09% (bottom quartile). 1Y return: 6.02% (bottom quartile). 1Y return: 3.29% (bottom quartile). Point 6 1M return: 0.53% (top quartile). 1M return: 0.45% (bottom quartile). 1M return: 0.49% (top quartile). 1M return: 0.49% (top quartile). 1M return: 0.49% (top quartile). 1M return: 0.48% (upper mid). 1M return: 0.45% (bottom quartile). 1M return: 0.48% (upper mid). 1M return: 0.45% (bottom quartile). 1M return: 0.48% (upper mid). 1M return: 0.48% (lower mid). 1M return: 0.49% (top quartile). 1M return: 0.48% (upper mid). 1M return: 0.47% (bottom quartile). 1M return: 0.47% (bottom quartile). 1M return: 0.48% (lower mid). 1M return: 0.48% (lower mid). 1M return: 0.47% (lower mid). 1M return: 0.47% (lower mid). 1M return: 0.47% (lower mid). 1M return: 0.49% (top quartile). 1M return: 0.48% (upper mid). 1M return: 0.48% (upper mid). 1M return: 0.47% (bottom quartile). 1M return: 0.29% (bottom quartile). Point 7 Sharpe: 0.20 (bottom quartile). Sharpe: 3.46 (top quartile). Sharpe: 3.06 (top quartile). Sharpe: 3.16 (top quartile). Sharpe: 3.03 (top quartile). Sharpe: 3.05 (top quartile). Sharpe: 2.53 (lower mid). Sharpe: 2.95 (upper mid). Sharpe: 2.77 (upper mid). Sharpe: 3.15 (top quartile). Sharpe: 2.92 (upper mid). Sharpe: 2.94 (upper mid). Sharpe: 2.51 (bottom quartile). Sharpe: 2.70 (upper mid). Sharpe: 2.65 (lower mid). Sharpe: 2.51 (lower mid). Sharpe: 2.60 (lower mid). Sharpe: 2.60 (lower mid). Sharpe: 2.87 (upper mid). Sharpe: 2.48 (bottom quartile). Sharpe: 2.67 (lower mid). Sharpe: 2.21 (bottom quartile). Sharpe: 2.05 (bottom quartile). Sharpe: 1.29 (bottom quartile). Sharpe: -3.87 (bottom quartile). Point 8 Information ratio: -5.96 (bottom quartile). Information ratio: 1.76 (top quartile). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (top quartile). Information ratio: 0.00 (top quartile). Information ratio: 0.00 (top quartile). Information ratio: 0.48 (top quartile). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (upper mid). Information ratio: -0.02 (lower mid). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (top quartile). Information ratio: -0.24 (bottom quartile). Information ratio: -0.15 (bottom quartile). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (lower mid). Information ratio: -0.18 (bottom quartile). Information ratio: 0.00 (lower mid). Information ratio: -0.80 (bottom quartile). Information ratio: 0.00 (upper mid). Information ratio: -1.47 (bottom quartile). Information ratio: -2.08 (bottom quartile). Information ratio: 0.00 (upper mid). Point 9 Yield to maturity (debt): 6.66% (bottom quartile). Yield to maturity (debt): 7.30% (lower mid). Yield to maturity (debt): 7.42% (lower mid). Yield to maturity (debt): 7.77% (top quartile). Yield to maturity (debt): 7.48% (upper mid). Yield to maturity (debt): 6.03% (bottom quartile). Yield to maturity (debt): 7.46% (upper mid). Yield to maturity (debt): 7.73% (top quartile). Yield to maturity (debt): 7.58% (upper mid). Yield to maturity (debt): 7.46% (upper mid). Yield to maturity (debt): 5.89% (bottom quartile). Yield to maturity (debt): 6.21% (bottom quartile). Yield to maturity (debt): 6.66% (lower mid). Yield to maturity (debt): 7.38% (lower mid). Yield to maturity (debt): 7.48% (upper mid). Yield to maturity (debt): 7.65% (top quartile). Yield to maturity (debt): 6.35% (bottom quartile). Yield to maturity (debt): 7.64% (top quartile). Yield to maturity (debt): 7.72% (top quartile). Yield to maturity (debt): 7.58% (upper mid). Yield to maturity (debt): 7.60% (top quartile). Yield to maturity (debt): 7.32% (lower mid). Yield to maturity (debt): 6.07% (bottom quartile). Yield to maturity (debt): 7.18% (lower mid). Yield to maturity (debt): 3.50% (bottom quartile). Point 10 Modified duration: 0.10 yrs (top quartile). Modified duration: 0.14 yrs (upper mid). Modified duration: 0.19 yrs (bottom quartile). Modified duration: 0.17 yrs (bottom quartile). Modified duration: 0.16 yrs (lower mid). Modified duration: 0.09 yrs (top quartile). Modified duration: 0.17 yrs (lower mid). Modified duration: 0.18 yrs (bottom quartile). Modified duration: 0.15 yrs (upper mid). Modified duration: 0.18 yrs (bottom quartile). Modified duration: 0.09 yrs (top quartile). Modified duration: 0.10 yrs (upper mid). Modified duration: 0.14 yrs (upper mid). Modified duration: 0.17 yrs (lower mid). Modified duration: 0.00 yrs (top quartile). Modified duration: 0.17 yrs (lower mid). Modified duration: 0.13 yrs (upper mid). Modified duration: 0.19 yrs (bottom quartile). Modified duration: 0.15 yrs (lower mid). Modified duration: 0.17 yrs (bottom quartile). Modified duration: 0.16 yrs (lower mid). Modified duration: 0.18 yrs (bottom quartile). Modified duration: 0.10 yrs (top quartile). Modified duration: 0.15 yrs (upper mid). Modified duration: 0.09 yrs (top quartile). IDBI Liquid Fund
BOI AXA Liquid Fund
Edelweiss Liquid Fund
Axis Liquid Fund
DSP Liquidity Fund
UTI Liquid Cash Plan
Canara Robeco Liquid
Aditya Birla Sun Life Liquid Fund
Mahindra Liquid Fund
Invesco India Liquid Fund
PGIM India Insta Cash Fund
Tata Liquid Fund
Nippon India Liquid Fund
HDFC Liquid Fund
Indiabulls Liquid Fund
LIC MF Liquid Fund
Mirae Asset Cash Management Fund
Kotak Liquid Fund
ICICI Prudential Liquid Fund
SBI Liquid Fund
Baroda Pioneer Liquid Fund
Bandhan Cash Fund
JM Liquid Fund
IIFL Liquid Fund
Sundaram Money Fund
The asset break-up between individuals and corporates is somewhat important to see if the liquid Mutual Funds can handle large redemptions. Large redemptions (at times 100s or 1000s of crores can also be taken place by corporates) can place pressures on the portfolio. At times of liquidity crisis, it would be difficult to find buyers for such a large quantity.
In fact, to ensure that the portfolio does not get impacted on price, liquid funds moved from mark to market to accrual-based Accounting post the Lehman crisis in 2008.
Also, the size of fund protects investors here on redemption pressures since SEBI has a rule that the highest individual holding in a scheme cannot exceed 20%. Hence, most schemes would be protected to an extent.
Best performing liquid funds for 2026 are-
Fund NAV Net Assets (Cr) 1 MO (%) 3 MO (%) 6 MO (%) 1 YR (%) 2024 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity IDBI Liquid Fund Growth ₹2,454.04
↑ 0.35 ₹503 0.5 1.7 3.4 6.6 6.66% 1M 7D 1M 10D BOI AXA Liquid Fund Growth ₹3,166.46
↑ 0.51 ₹1,611 0.5 1.6 3.1 6.3 6.6 7.3% 1M 20D 1M 20D Edelweiss Liquid Fund Growth ₹3,514.9
↑ 0.56 ₹8,877 0.5 1.6 3.1 6.3 6.5 7.42% 2M 8D 2M 8D Axis Liquid Fund Growth ₹3,060.65
↑ 0.51 ₹30,188 0.5 1.6 3.1 6.3 6.6 7.77% 2M 1D 2M 5D DSP Liquidity Fund Growth ₹3,923.79
↑ 0.65 ₹16,866 0.5 1.6 3.1 6.2 6.5 7.48% 1M 28D 2M 1D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 28 Jul 23 Research Highlights & Commentary of 5 Funds showcased
Commentary IDBI Liquid Fund BOI AXA Liquid Fund Edelweiss Liquid Fund Axis Liquid Fund DSP Liquidity Fund Point 1 Bottom quartile AUM (₹503 Cr). Bottom quartile AUM (₹1,611 Cr). Lower mid AUM (₹8,877 Cr). Highest AUM (₹30,188 Cr). Upper mid AUM (₹16,866 Cr). Point 2 Established history (15+ yrs). Established history (17+ yrs). Established history (18+ yrs). Established history (16+ yrs). Oldest track record among peers (20 yrs). Point 3 Rating: 3★ (upper mid). Rating: 3★ (lower mid). Rating: 2★ (bottom quartile). Top rated. Rating: 3★ (bottom quartile). Point 4 Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Point 5 1Y return: 6.55% (top quartile). 1Y return: 6.27% (upper mid). 1Y return: 6.26% (lower mid). 1Y return: 6.25% (bottom quartile). 1Y return: 6.24% (bottom quartile). Point 6 1M return: 0.53% (top quartile). 1M return: 0.45% (bottom quartile). 1M return: 0.49% (upper mid). 1M return: 0.49% (lower mid). 1M return: 0.49% (bottom quartile). Point 7 Sharpe: 0.20 (bottom quartile). Sharpe: 3.46 (top quartile). Sharpe: 3.06 (lower mid). Sharpe: 3.16 (upper mid). Sharpe: 3.03 (bottom quartile). Point 8 Information ratio: -5.96 (bottom quartile). Information ratio: 1.76 (top quartile). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (bottom quartile). Point 9 Yield to maturity (debt): 6.66% (bottom quartile). Yield to maturity (debt): 7.30% (bottom quartile). Yield to maturity (debt): 7.42% (lower mid). Yield to maturity (debt): 7.77% (top quartile). Yield to maturity (debt): 7.48% (upper mid). Point 10 Modified duration: 0.10 yrs (top quartile). Modified duration: 0.14 yrs (upper mid). Modified duration: 0.19 yrs (bottom quartile). Modified duration: 0.17 yrs (bottom quartile). Modified duration: 0.16 yrs (lower mid). IDBI Liquid Fund
BOI AXA Liquid Fund
Edelweiss Liquid Fund
Axis Liquid Fund
DSP Liquidity Fund
Performance ratings unless taking into account the current portfolio and the future outlook won’t be able to differentiate tomorrow’s winners from the losers. So, while backward-looking ratings can give an idea about past performance, one can use these as a measure at best for de-selecting a fund.
While looking for liquid mutual funds one needs to look a number of factors and then choose the relevant fund.
Disclaimer: Please consult your advisor and do independent research before making any investment decision.