+91-22-48913909
Table of Contents
6 Best Liquid Mutual Funds 2025
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.
Talk to our investment specialist
6 Best Liquid Funds India FY 25 - 26
Fund NAV Net Assets (Cr) 1 MO (%) 3 MO (%) 6 MO (%) 1 YR (%) 2023 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Axis Liquid Fund Growth ₹2,835.78
↑ 0.53 ₹45,983 0.6 1.8 3.6 7.4 7.4 7.23% 1M 9D 1M 10D LIC MF Liquid Fund Growth ₹4,606.83
↑ 0.85 ₹12,287 0.6 1.7 3.5 7.3 7.4 7.25% 1M 6D 1M 6D DSP BlackRock Liquidity Fund Growth ₹3,636.9
↑ 0.68 ₹21,927 0.6 1.8 3.6 7.4 7.4 7.29% 1M 6D 1M 10D Invesco India Liquid Fund Growth ₹3,501.1
↑ 0.63 ₹13,265 0.6 1.8 3.6 7.3 7.4 7.22% 1M 11D 1M 11D ICICI Prudential Liquid Fund Growth ₹377.129
↑ 0.07 ₹56,989 0.6 1.7 3.5 7.3 7.4 7.27% 1M 20D 1M 24D Aditya Birla Sun Life Liquid Fund Growth ₹410.44
↑ 0.08 ₹49,810 0.6 1.8 3.5 7.3 7.3 7.33% 1M 13D 1M 13D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 19 Feb 25 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.
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 An open ended scheme which seeks to generate reasonable returns with low risk and high liquidity through a judicious mix of investment in money market
instruments and quality debt instruments. However, there is no assurance that the investment objective of the Scheme will be realised. LIC MF Liquid Fund is a Debt - Liquid Fund fund was launched on 11 Mar 02. It is a fund with Low risk and has given a Below is the key information for LIC MF Liquid Fund Returns up to 1 year are on The Scheme seeks to generate reasonable returns commensurate with low risk from a portfolio constituted of money market and high quality debts DSP BlackRock Liquidity Fund is a Debt - Liquid Fund fund was launched on 23 Nov 05. It is a fund with Low risk and has given a Below is the key information for DSP BlackRock Liquidity Fund Returns up to 1 year are on 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 (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 1. Axis Liquid Fund
CAGR/Annualized return of 7% since its launch. Ranked 21 in Liquid Fund category. Return for 2024 was 7.4% , 2023 was 7.1% and 2022 was 4.9% . Axis Liquid Fund
Growth Launch Date 9 Oct 09 NAV (19 Feb 25) ₹2,835.78 ↑ 0.53 (0.02 %) Net Assets (Cr) ₹45,983 on 15 Feb 25 Category Debt - Liquid Fund AMC Axis Asset Management Company Limited Rating ☆☆☆☆ Risk Low Expense Ratio 0.23 Sharpe Ratio 3.92 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 10 Days Modified Duration 1 Month 9 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹10,407 31 Jan 22 ₹10,754 31 Jan 23 ₹11,306 31 Jan 24 ₹12,113 31 Jan 25 ₹13,006 Returns for Axis Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Feb 25 Duration Returns 1 Month 0.6% 3 Month 1.8% 6 Month 3.6% 1 Year 7.4% 3 Year 6.6% 5 Year 5.4% 10 Year 15 Year Since launch 7% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.4% 2022 7.1% 2021 4.9% 2020 3.3% 2019 4.3% 2018 6.6% 2017 7.5% 2016 6.7% 2015 7.6% 2014 8.4% Fund Manager information for Axis Liquid Fund
Name Since Tenure Devang Shah 5 Nov 12 12.25 Yr. Aditya Pagaria 13 Aug 16 8.48 Yr. Sachin Jain 3 Jul 23 1.59 Yr. Data below for Axis Liquid Fund as on 15 Feb 25
Asset Allocation
Asset Class Value Cash 98.56% Debt 1.24% Other 0.2% Debt Sector Allocation
Sector Value Cash Equivalent 71.77% Corporate 26% Government 2.02% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Clearing Corporation Of India Ltd
CBLO/Reverse Repo | -10% ₹4,150 Cr National Bank For Agriculture And Rural Development
Commercial Paper | -3% ₹1,212 Cr 24,500
↑ 24,500 Punjab National Bank Limited
Certificate of Deposit | -3% ₹1,196 Cr 24,000 91 DTB 28032025
Sovereign Bonds | -3% ₹1,185 Cr 120,000,000
↑ 120,000,000 182 DTB 30012025
Sovereign Bonds | -3% ₹1,107 Cr 111,004,100
↑ 17,000,000 Net Receivables / (Payables)
CBLO | -2% -₹986 Cr Bank Of Baroda
Certificate of Deposit | -2% ₹963 Cr 19,500 91 DTB 21022025
Sovereign Bonds | -2% ₹745 Cr 75,000,000 Bank Of India
Certificate of Deposit | -2% ₹744 Cr 15,000 Bank Of India
Certificate of Deposit | -2% ₹743 Cr 15,000 2. LIC MF Liquid Fund
CAGR/Annualized return of 6.9% since its launch. Ranked 25 in Liquid Fund category. Return for 2024 was 7.4% , 2023 was 7% and 2022 was 4.7% . LIC MF Liquid Fund
Growth Launch Date 11 Mar 02 NAV (19 Feb 25) ₹4,606.83 ↑ 0.85 (0.02 %) Net Assets (Cr) ₹12,287 on 31 Jan 25 Category Debt - Liquid Fund AMC LIC Mutual Fund Asset Mgmt Co Ltd Rating ☆☆☆ Risk Low Expense Ratio 0.24 Sharpe Ratio 3.63 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.25% Effective Maturity 1 Month 6 Days Modified Duration 1 Month 6 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹10,409 31 Jan 22 ₹10,751 31 Jan 23 ₹11,287 31 Jan 24 ₹12,082 31 Jan 25 ₹12,970 Returns for LIC MF Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Feb 25 Duration Returns 1 Month 0.6% 3 Month 1.7% 6 Month 3.5% 1 Year 7.3% 3 Year 6.5% 5 Year 5.4% 10 Year 15 Year Since launch 6.9% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.4% 2022 7% 2021 4.7% 2020 3.3% 2019 4.3% 2018 6.5% 2017 7.3% 2016 6.6% 2015 7.6% 2014 8.4% Fund Manager information for LIC MF Liquid Fund
Name Since Tenure Rahul Singh 5 Oct 15 9.33 Yr. Data below for LIC MF Liquid Fund as on 31 Jan 25
Asset Allocation
Asset Class Value Cash 96.15% Debt 3.6% Other 0.25% Debt Sector Allocation
Sector Value Cash Equivalent 81.78% Corporate 14.31% Government 3.66% Credit Quality
Rating Value AA 0.52% AAA 99.48% Top Securities Holdings / Portfolio
Name Holding Value Quantity Treps
CBLO/Reverse Repo | -6% ₹636 Cr Net Receivables / (Payables)
CBLO | -5% -₹588 Cr Reverse Repo
CBLO/Reverse Repo | -5% ₹566 Cr 91 DTB 06032025
Sovereign Bonds | -5% ₹496 Cr 50,000,000
↑ 50,000,000 Export-Import Bank of India
Commercial Paper | -4% ₹445 Cr 9,000
↓ -500 91 Days Tbill Red 27-02-2025
Sovereign Bonds | -4% ₹397 Cr 40,000,000 91 DTB 17042025
Sovereign Bonds | -4% ₹394 Cr 40,000,000
↑ 40,000,000 Birla Group Holdings Pvt Ltd.
Commercial Paper | -3% ₹298 Cr 6,000 Bank Of Baroda
Certificate of Deposit | -3% ₹297 Cr 6,000 HDFC Bank Limited
Certificate of Deposit | -3% ₹297 Cr 6,000
↑ 6,000 3. DSP BlackRock Liquidity Fund
CAGR/Annualized return of 6.9% since its launch. Ranked 36 in Liquid Fund category. Return for 2024 was 7.4% , 2023 was 7% and 2022 was 4.8% . DSP BlackRock Liquidity Fund
Growth Launch Date 23 Nov 05 NAV (19 Feb 25) ₹3,636.9 ↑ 0.68 (0.02 %) Net Assets (Cr) ₹21,927 on 31 Jan 25 Category Debt - Liquid Fund AMC DSP BlackRock Invmt Managers Pvt. Ltd. Rating ☆☆☆ Risk Low Expense Ratio 0.24 Sharpe Ratio 4.72 Information Ratio 0 Alpha Ratio 0 Min Investment 1,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 7.29% Effective Maturity 1 Month 10 Days Modified Duration 1 Month 6 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹10,398 31 Jan 22 ₹10,741 31 Jan 23 ₹11,286 31 Jan 24 ₹12,082 31 Jan 25 ₹12,972 Returns for DSP BlackRock Liquidity Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Feb 25 Duration Returns 1 Month 0.6% 3 Month 1.8% 6 Month 3.6% 1 Year 7.4% 3 Year 6.6% 5 Year 5.4% 10 Year 15 Year Since launch 6.9% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.4% 2022 7% 2021 4.8% 2020 3.3% 2019 4.2% 2018 6.5% 2017 7.4% 2016 6.6% 2015 7.6% 2014 8.3% Fund Manager information for DSP BlackRock Liquidity Fund
Name Since Tenure Karan Mundhra 31 May 21 3.68 Yr. Shalini Vasanta 1 Aug 24 0.5 Yr. Data below for DSP BlackRock Liquidity Fund as on 31 Jan 25
Asset Allocation
Asset Class Value Cash 98.4% Debt 1.39% Other 0.2% Debt Sector Allocation
Sector Value Cash Equivalent 78.23% Corporate 19.8% Government 1.77% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Treps / Reverse Repo Investments
CBLO/Reverse Repo | -10% ₹2,032 Cr 91 DTB 13032025
Sovereign Bonds | -4% ₹743 Cr 75,000,000 Union Bank Of India
Certificate of Deposit | -3% ₹694 Cr 14,000 Indian Bank
Certificate of Deposit | -3% ₹593 Cr 12,000 Bank Of Baroda
Certificate of Deposit | -2% ₹499 Cr 10,000 Net Receivables/Payables
CBLO | -2% -₹439 Cr Bank of Baroda
Certificate of Deposit | -2% ₹397 Cr 8,000 Small Industries Development Bank of India
Certificate of Deposit | -2% ₹397 Cr 8,000 HDFC Bank Limited
Certificate of Deposit | -2% ₹396 Cr 8,000
↑ 1,800 91 DTB 10042025
Sovereign Bonds | -2% ₹394 Cr 40,000,000
↑ 40,000,000 4. Invesco India Liquid Fund
CAGR/Annualized return of 7.1% since its launch. Ranked 9 in Liquid Fund category. Return for 2024 was 7.4% , 2023 was 7% and 2022 was 4.8% . Invesco India Liquid Fund
Growth Launch Date 17 Nov 06 NAV (19 Feb 25) ₹3,501.1 ↑ 0.63 (0.02 %) Net Assets (Cr) ₹13,265 on 31 Jan 25 Category Debt - Liquid Fund AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆☆ Risk Low Expense Ratio 0.22 Sharpe Ratio 4.35 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 7.22% Effective Maturity 1 Month 11 Days Modified Duration 1 Month 11 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹10,390 31 Jan 22 ₹10,733 31 Jan 23 ₹11,279 31 Jan 24 ₹12,076 31 Jan 25 ₹12,964 Returns for Invesco India Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Feb 25 Duration Returns 1 Month 0.6% 3 Month 1.8% 6 Month 3.6% 1 Year 7.3% 3 Year 6.6% 5 Year 5.4% 10 Year 15 Year Since launch 7.1% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.4% 2022 7% 2021 4.8% 2020 3.3% 2019 4.1% 2018 6.5% 2017 7.4% 2016 6.7% 2015 7.6% 2014 8.4% Fund Manager information for Invesco India Liquid Fund
Name Since Tenure Krishna Cheemalapati 25 Apr 11 13.78 Yr. Prateek Jain 14 Feb 22 2.97 Yr. Data below for Invesco India Liquid Fund as on 31 Jan 25
Asset Allocation
Asset Class Value Cash 97.88% Debt 1.89% Other 0.23% Debt Sector Allocation
Sector Value Cash Equivalent 81.35% Corporate 16.53% Government 1.89% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Triparty Repo
CBLO/Reverse Repo | -6% ₹745 Cr 91 DTB 13022025
Sovereign Bonds | -4% ₹498 Cr 50,000,000 91 DTB 21022025
Sovereign Bonds | -4% ₹497 Cr 50,000,000 Canara Bank
Certificate of Deposit | -4% ₹493 Cr 50,000,000
↑ 50,000,000 HDFC Bank Limited
Certificate of Deposit | -3% ₹444 Cr 45,000,000 Godrej Consumer Products Limited
Commercial Paper | -2% ₹299 Cr 30,000,000 Reliance Retail Ventures Limited
Commercial Paper | -2% ₹298 Cr 30,000,000 Reliance Retail Ventures Limited 2025
Commercial Paper | -2% ₹298 Cr 30,000,000 91 Days Tbill Red 27-02-2025
Sovereign Bonds | -2% ₹298 Cr 30,000,000 Union Bank Of India
Certificate of Deposit | -2% ₹298 Cr 30,000,000 5. ICICI Prudential Liquid Fund
CAGR/Annualized return of 7.1% since its launch. Ranked 20 in Liquid Fund category. Return for 2024 was 7.4% , 2023 was 7% and 2022 was 4.8% . ICICI Prudential Liquid Fund
Growth Launch Date 17 Nov 05 NAV (19 Feb 25) ₹377.129 ↑ 0.07 (0.02 %) Net Assets (Cr) ₹56,989 on 31 Jan 25 Category Debt - Liquid Fund AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Low Expense Ratio 0.29 Sharpe Ratio 3.68 Information Ratio -2.47 Alpha Ratio -0.06 Min Investment 500 Min SIP Investment 99 Exit Load NIL Yield to Maturity 7.27% Effective Maturity 1 Month 24 Days Modified Duration 1 Month 20 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹10,408 31 Jan 22 ₹10,749 31 Jan 23 ₹11,288 31 Jan 24 ₹12,086 31 Jan 25 ₹12,973 Returns for ICICI Prudential Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 19 Feb 25 Duration Returns 1 Month 0.6% 3 Month 1.7% 6 Month 3.5% 1 Year 7.3% 3 Year 6.5% 5 Year 5.4% 10 Year 15 Year Since launch 7.1% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.4% 2022 7% 2021 4.8% 2020 3.2% 2019 4.3% 2018 6.6% 2017 7.4% 2016 6.6% 2015 7.7% 2014 8.3% Fund Manager information for ICICI Prudential Liquid Fund
Name Since Tenure Nikhil Kabra 1 Dec 23 1.17 Yr. Darshil Dedhia 12 Jun 23 1.64 Yr. Data below for ICICI Prudential Liquid Fund as on 31 Jan 25
Asset Allocation
Asset Class Value Cash 96.8% Debt 2.98% Other 0.22% Debt Sector Allocation
Sector Value Cash Equivalent 73.71% Corporate 22.68% Government 3.39% Credit Quality
Rating Value AA 1.32% AAA 98.68% Top Securities Holdings / Portfolio
Name Holding Value Quantity 91 DTB 17042025
Sovereign Bonds | -3% ₹1,771 Cr 180,000,000
↑ 180,000,000 Net Current Assets
Net Current Assets | -2% -₹1,486 Cr National Bank For Agriculture And Rural Development
Commercial Paper | -2% ₹1,483 Cr 30,000 Small Industries Development Bank Of India
Commercial Paper | -2% ₹1,480 Cr 30,000 Reverse Repo (1/16/2025)
CBLO/Reverse Repo | -2% ₹1,478 Cr 6.89% Govt Stock 2025
Sovereign Bonds | -2% ₹1,455 Cr 145,500,000
↑ 145,500,000 364 DTB 02052024
Sovereign Bonds | -2% ₹1,443 Cr 144,500,000
↑ 50,000,000 364 Day T-Bill 30.01.25
Sovereign Bonds | -2% ₹1,435 Cr 143,900,000
↑ 75,000,000 HDFC Bank Limited
Certificate of Deposit | -2% ₹1,432 Cr 29,000 Cp Mankind Pharma Ltd
Commercial Paper | -2% ₹1,345 Cr 26,900
↑ 6,400 6. Aditya Birla Sun Life Liquid Fund
CAGR/Annualized return of 7% since its launch. Ranked 15 in Liquid Fund category. Return for 2024 was 7.3% , 2023 was 7.1% and 2022 was 4.8% . Aditya Birla Sun Life Liquid Fund
Growth Launch Date 30 Mar 04 NAV (19 Feb 25) ₹410.44 ↑ 0.08 (0.02 %) Net Assets (Cr) ₹49,810 on 31 Jan 25 Category Debt - Liquid Fund AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆ Risk Low Expense Ratio 0.34 Sharpe Ratio 3.79 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 7.33% Effective Maturity 1 Month 13 Days Modified Duration 1 Month 13 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹10,409 31 Jan 22 ₹10,753 31 Jan 23 ₹11,300 31 Jan 24 ₹12,106 31 Jan 25 ₹12,993 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 Feb 25 Duration Returns 1 Month 0.6% 3 Month 1.8% 6 Month 3.5% 1 Year 7.3% 3 Year 6.6% 5 Year 5.4% 10 Year 15 Year Since launch 7% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.3% 2022 7.1% 2021 4.8% 2020 3.3% 2019 4.3% 2018 6.7% 2017 7.4% 2016 6.7% 2015 7.7% 2014 8.4% Fund Manager information for Aditya Birla Sun Life Liquid Fund
Name Since Tenure Sunaina Cunha 15 Jul 11 13.56 Yr. Kaustubh Gupta 15 Jul 11 13.56 Yr. Sanjay Pawar 1 Jul 22 2.59 Yr. Dhaval Joshi 21 Nov 22 2.2 Yr. Data below for Aditya Birla Sun Life Liquid Fund as on 31 Jan 25
Asset Allocation
Asset Class Value Cash 99.77% Other 0.23% Debt Sector Allocation
Sector Value Cash Equivalent 68.87% Corporate 30.05% Government 0.84% Credit Quality
Rating Value AA 0.82% AAA 99.18% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reverse Repo
CBLO/Reverse Repo | -7% ₹3,402 Cr Punjab National Bank
Certificate of Deposit | -4% ₹1,978 Cr 40,000
↑ 40,000 91 DTB 23012025
Sovereign Bonds | -3% ₹1,204 Cr 120,500,000 Bank Of Baroda
Certificate of Deposit | -2% ₹1,089 Cr 22,000
↓ -3,000 Bank Of Baroda
Certificate of Deposit | -2% ₹988 Cr 20,000
↑ 20,000 Indian Bank
Certificate of Deposit | -2% ₹963 Cr 19,500
↑ 19,500 182 DTB 23012025
Sovereign Bonds | -2% ₹949 Cr 95,000,000 National Bank For Agriculture And Rural Development
Debentures | -2% ₹864 Cr 8,650 Small Industries Development Bank Of India
Commercial Paper | -2% ₹839 Cr 17,000
↑ 17,000 182 Days Tbill
Sovereign Bonds | -2% ₹789 Cr 80,000,000
↑ 80,000,000
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.
AMFI Registration No. 112358 | CIN: U74999MH2016PTC282153
Shepard Technologies Pvt. Ltd. (with ARN code 112358) makes no warranties or representations, express or implied, on products offered through the platform. It accepts no liability for any damages or losses, however caused, in connection with the use of, or on the reliance of its product or related services. Terms and conditions of the website are applicable.
©2025 Shepard Technologies Private Limited. All Rights Reserved
Good knowledgeable information, you should have to give an example