+91-22-489139096 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.
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6 Best Liquid Funds India FY 25 - 26
Fund NAV Net Assets (Cr) 1 MO (%) 3 MO (%) 6 MO (%) 1 YR (%) 2024 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Axis Liquid Fund Growth ₹2,942.48
↑ 0.60 ₹36,757 0.5 1.4 3.3 6.9 7.4 5.85% 1M 12D 1M 15D LIC MF Liquid Fund Growth ₹4,776.42
↑ 0.96 ₹11,199 0.5 1.4 3.2 6.8 7.4 5.85% 1M 12D 1M 12D UTI Liquid Cash Plan Growth ₹4,335.31
↑ 0.88 ₹29,013 0.5 1.4 3.3 6.9 7.3 5.86% 1M 13D 1M 13D Bandhan Cash Fund Growth ₹3,191.34 ₹14,391 0.5 1.4 3.2 6.8 7.3 5.75% 1M 3D 1M 3D Baroda Pioneer Liquid Fund Growth ₹3,037.71
↑ 0.63 ₹11,836 0.5 1.4 3.2 6.8 7.3 5.84% 1M 9D 1M 9D SBI Liquid Fund Growth ₹4,129.97
↑ 0.83 ₹68,443 0.5 1.4 3.2 6.8 7.3 5.8% 1M 6D 1M 10D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 16 Sep 25 Research Highlights & Commentary of 6 Funds showcased
Commentary Axis Liquid Fund LIC MF Liquid Fund UTI Liquid Cash Plan Bandhan Cash Fund Baroda Pioneer Liquid Fund SBI Liquid Fund Point 1 Upper mid AUM (₹36,757 Cr). Bottom quartile AUM (₹11,199 Cr). Upper mid AUM (₹29,013 Cr). Lower mid AUM (₹14,391 Cr). Bottom quartile AUM (₹11,836 Cr). Highest AUM (₹68,443 Cr). Point 2 Established history (15+ yrs). Oldest track record among peers (23 yrs). Established history (21+ yrs). Established history (17+ yrs). Established history (16+ yrs). Established history (18+ yrs). Point 3 Top rated. Rating: 3★ (upper mid). Rating: 3★ (lower mid). Rating: 3★ (bottom quartile). Rating: 4★ (upper mid). Rating: 3★ (bottom quartile). Point 4 Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Risk profile: Low. Point 5 1Y return: 6.92% (top quartile). 1Y return: 6.79% (upper mid). 1Y return: 6.88% (upper mid). 1Y return: 6.78% (bottom quartile). 1Y return: 6.78% (lower mid). 1Y return: 6.77% (bottom quartile). Point 6 1M return: 0.47% (top quartile). 1M return: 0.46% (bottom quartile). 1M return: 0.47% (upper mid). 1M return: 0.45% (bottom quartile). 1M return: 0.46% (upper mid). 1M return: 0.46% (lower mid). Point 7 Sharpe: 3.64 (top quartile). Sharpe: 3.14 (upper mid). Sharpe: 3.22 (upper mid). Sharpe: 3.01 (lower mid). Sharpe: 2.93 (bottom quartile). Sharpe: 2.63 (bottom quartile). Point 8 Information ratio: 0.00 (top quartile). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (lower mid). Information ratio: -1.27 (bottom quartile). Information ratio: 0.00 (bottom quartile). Point 9 Yield to maturity (debt): 5.85% (upper mid). Yield to maturity (debt): 5.85% (upper mid). Yield to maturity (debt): 5.86% (top quartile). Yield to maturity (debt): 5.75% (bottom quartile). Yield to maturity (debt): 5.84% (lower mid). Yield to maturity (debt): 5.80% (bottom quartile). Point 10 Modified duration: 0.12 yrs (lower mid). Modified duration: 0.12 yrs (bottom quartile). Modified duration: 0.12 yrs (bottom quartile). Modified duration: 0.09 yrs (top quartile). Modified duration: 0.11 yrs (upper mid). Modified duration: 0.10 yrs (upper mid). Axis Liquid Fund
LIC MF Liquid Fund
UTI Liquid Cash Plan
Bandhan Cash Fund
Baroda Pioneer Liquid Fund
SBI Liquid Fund
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. Research Highlights for Axis Liquid Fund 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. Research Highlights for LIC MF Liquid Fund Below is the key information for LIC MF Liquid Fund Returns up to 1 year are on 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. Research Highlights for UTI Liquid Cash Plan Below is the key information for UTI Liquid Cash Plan Returns up to 1 year are on 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. Research Highlights for Bandhan Cash Fund Below is the key information for Bandhan Cash Fund Returns up to 1 year are on To generate income with a high level of liquidity by investing in a portfolio of money market and debt securities. Research Highlights for Baroda Pioneer Liquid Fund Below is the key information for Baroda Pioneer 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. Research Highlights for SBI Liquid Fund Below is the key information for SBI Liquid Fund Returns up to 1 year are on 1. Axis Liquid Fund
Axis Liquid Fund
Growth Launch Date 9 Oct 09 NAV (16 Sep 25) ₹2,942.48 ↑ 0.60 (0.02 %) Net Assets (Cr) ₹36,757 on 31 Jul 25 Category Debt - Liquid Fund AMC Axis Asset Management Company Limited Rating ☆☆☆☆ Risk Low Expense Ratio 0.23 Sharpe Ratio 3.64 Information Ratio 0 Alpha Ratio 0 Min Investment 500 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 5.85% Effective Maturity 1 Month 15 Days Modified Duration 1 Month 12 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 20 ₹10,000 31 Aug 21 ₹10,323 31 Aug 22 ₹10,725 31 Aug 23 ₹11,450 31 Aug 24 ₹12,294 31 Aug 25 ₹13,151 Returns for Axis Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Sep 25 Duration Returns 1 Month 0.5% 3 Month 1.4% 6 Month 3.3% 1 Year 6.9% 3 Year 7% 5 Year 5.7% 10 Year 15 Year Since launch 7% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.4% 2023 7.1% 2022 4.9% 2021 3.3% 2020 4.3% 2019 6.6% 2018 7.5% 2017 6.7% 2016 7.6% 2015 8.4% Fund Manager information for Axis Liquid Fund
Name Since Tenure Devang Shah 5 Nov 12 12.83 Yr. Aditya Pagaria 13 Aug 16 9.06 Yr. Sachin Jain 3 Jul 23 2.17 Yr. Data below for Axis Liquid Fund as on 31 Jul 25
Asset Allocation
Asset Class Value Cash 99.77% Other 0.23% Debt Sector Allocation
Sector Value Cash Equivalent 80.05% Corporate 14.71% Government 5.01% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Clearing Corporation Of India Ltd
CBLO/Reverse Repo | -6% ₹2,451 Cr Canara Bank
Domestic Bonds | -4% ₹1,798 Cr 36,000 Indian Oil Corporation Limited
Commercial Paper | -4% ₹1,720 Cr 34,500 India (Republic of)
- | -4% ₹1,488 Cr 150,000,000 Punjab National Bank
Certificate of Deposit | -3% ₹1,343 Cr 27,000 91 Days Tbill (Md 28/08/2025)
Sovereign Bonds | -3% ₹1,275 Cr 128,124,300 182 DTB 29082025
Sovereign Bonds | -3% ₹1,251 Cr 125,365,700 Bharti Airtel Limited
Commercial Paper | -3% ₹1,022 Cr 20,500 National Bank For Agriculture And Rural Development
Commercial Paper | -3% ₹1,020 Cr 20,500 HDFC Bank Ltd.
Certificate of Deposit | -2% ₹990 Cr 20,000 2. LIC MF Liquid Fund
LIC MF Liquid Fund
Growth Launch Date 11 Mar 02 NAV (16 Sep 25) ₹4,776.42 ↑ 0.96 (0.02 %) Net Assets (Cr) ₹11,199 on 31 Jul 25 Category Debt - Liquid Fund AMC LIC Mutual Fund Asset Mgmt Co Ltd Rating ☆☆☆ Risk Low Expense Ratio 0.22 Sharpe Ratio 3.14 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 5.85% Effective Maturity 1 Month 12 Days Modified Duration 1 Month 12 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 20 ₹10,000 31 Aug 21 ₹10,320 31 Aug 22 ₹10,711 31 Aug 23 ₹11,421 31 Aug 24 ₹12,262 31 Aug 25 ₹13,102 Returns for LIC MF Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Sep 25 Duration Returns 1 Month 0.5% 3 Month 1.4% 6 Month 3.2% 1 Year 6.8% 3 Year 7% 5 Year 5.6% 10 Year 15 Year Since launch 6.9% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.4% 2023 7% 2022 4.7% 2021 3.3% 2020 4.3% 2019 6.5% 2018 7.3% 2017 6.6% 2016 7.6% 2015 8.4% Fund Manager information for LIC MF Liquid Fund
Name Since Tenure Rahul Singh 5 Oct 15 9.91 Yr. Data below for LIC MF Liquid Fund as on 31 Jul 25
Asset Allocation
Asset Class Value Cash 99.76% Other 0.24% Debt Sector Allocation
Sector Value Cash Equivalent 75.56% Corporate 20.91% Government 3.29% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 182 DTB 18102024
Sovereign Bonds | -5% ₹547 Cr 55,000,000
↑ 55,000,000 Reverse Repo
CBLO/Reverse Repo | -4% ₹513 Cr Indian Oil Corporation Limited
Commercial Paper | -3% ₹399 Cr 8,000 Motilal Oswal Financial Services Limited
Commercial Paper | -3% ₹398 Cr 8,000 India (Republic of)
- | -3% ₹395 Cr 40,000,000
↑ 40,000,000 Chennai Petroleum Cor Cp 18-08-25**
Commercial Paper | -2% ₹300 Cr 6,000 91 Days Tbill (Md 28/08/2025)
Sovereign Bonds | -2% ₹299 Cr 30,000,000
↑ 30,000,000 HDFC Bank Limited
Certificate of Deposit | -2% ₹298 Cr 6,000 Indian Oil Corporation Ltd.
Commercial Paper | -2% ₹298 Cr 6,000 Birla Group Holdings Private Limited
Commercial Paper | -2% ₹298 Cr 6,000 3. UTI Liquid Cash Plan
UTI Liquid Cash Plan
Growth Launch Date 11 Dec 03 NAV (16 Sep 25) ₹4,335.31 ↑ 0.88 (0.02 %) Net Assets (Cr) ₹29,013 on 31 Jul 25 Category Debt - Liquid Fund AMC UTI Asset Management Company Ltd Rating ☆☆☆ Risk Low Expense Ratio 0.25 Sharpe Ratio 3.22 Information Ratio 0 Alpha Ratio 0 Min Investment 500 Min SIP Investment 1,500 Exit Load NIL Yield to Maturity 5.86% Effective Maturity 1 Month 13 Days Modified Duration 1 Month 13 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 20 ₹10,000 31 Aug 21 ₹10,323 31 Aug 22 ₹10,723 31 Aug 23 ₹11,444 31 Aug 24 ₹12,282 31 Aug 25 ₹13,133 Returns for UTI Liquid Cash Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Sep 25 Duration Returns 1 Month 0.5% 3 Month 1.4% 6 Month 3.3% 1 Year 6.9% 3 Year 7% 5 Year 5.6% 10 Year 15 Year Since launch 6.9% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.3% 2023 7% 2022 4.8% 2021 3.3% 2020 4.2% 2019 6.6% 2018 7.4% 2017 6.7% 2016 7.7% 2015 8.3% Fund Manager information for UTI Liquid Cash Plan
Name Since Tenure Amit Sharma 7 Jul 17 8.16 Yr. Data below for UTI Liquid Cash Plan as on 31 Jul 25
Asset Allocation
Asset Class Value Cash 99.75% Other 0.25% Debt Sector Allocation
Sector Value Cash Equivalent 83.92% Corporate 14.11% Government 1.71% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Net Current Assets
Net Current Assets | -4% ₹1,140 Cr 91 Days Tbill Red 23-10-2025
Sovereign Bonds | -4% ₹990 Cr 10,000,000,000
↑ 10,000,000,000 Canara Bank
Certificate of Deposit | -3% ₹746 Cr 7,500,000,000 Reliance Industries Ltd.
Commercial Paper | -3% ₹745 Cr 7,500,000,000
↑ 7,500,000,000 National Bank For Agriculture And Rural Development
Commercial Paper | -2% ₹622 Cr 6,250,000,000
↓ -750,000,000 91 Days Tbill (Md 28/08/2025)
Sovereign Bonds | -2% ₹548 Cr 5,500,000,000 National Bank For Agriculture And Rural Development
Commercial Paper | -2% ₹547 Cr 5,500,000,000 Indian Oil Corporation Ltd.
Commercial Paper | -2% ₹547 Cr 5,500,000,000 91 Days Tbill (Md 28/08/2025)
Sovereign Bonds | -2% ₹524 Cr 5,250,000,000
↑ 1,750,000,000 Reliance Retail Ventures Limited
Commercial Paper | -2% ₹499 Cr 5,000,000,000 4. Bandhan Cash Fund
Bandhan Cash Fund
Growth Launch Date 4 Jun 08 NAV (16 Sep 25) ₹3,191.34 Net Assets (Cr) ₹14,391 on 31 Jul 25 Category Debt - Liquid Fund AMC IDFC Asset Management Company Limited Rating ☆☆☆ Risk Low Expense Ratio 0.25 Sharpe Ratio 3.01 Information Ratio 0 Alpha Ratio 0 Min Investment 100 Min SIP Investment 100 Exit Load NIL Yield to Maturity 5.75% Effective Maturity 1 Month 3 Days Modified Duration 1 Month 3 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 20 ₹10,000 31 Aug 21 ₹10,318 31 Aug 22 ₹10,717 31 Aug 23 ₹11,431 31 Aug 24 ₹12,264 31 Aug 25 ₹13,103 Returns for Bandhan Cash Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Sep 25 Duration Returns 1 Month 0.5% 3 Month 1.4% 6 Month 3.2% 1 Year 6.8% 3 Year 6.9% 5 Year 5.6% 10 Year 15 Year Since launch 6.9% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.3% 2023 7% 2022 4.8% 2021 3.2% 2020 4% 2019 6.3% 2018 7.3% 2017 6.6% 2016 7.6% 2015 8.4% Fund Manager information for Bandhan Cash Fund
Name Since Tenure Harshal Joshi 15 Sep 15 9.97 Yr. Brijesh Shah 1 Dec 21 3.75 Yr. Data below for Bandhan Cash Fund as on 31 Jul 25
Asset Allocation
Asset Class Value Cash 99.74% Other 0.26% Debt Sector Allocation
Sector Value Cash Equivalent 74.68% Corporate 18.55% Government 6.51% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Limited
Certificate of Deposit | -6% ₹897 Cr 90,000,000 Reliance Retail Ventures Limited
Commercial Paper | -5% ₹748 Cr 75,000,000 Export-Import Bank Of India
Commercial Paper | -4% ₹548 Cr 55,000,000 Axis Bank Limited
Certificate of Deposit | -4% ₹518 Cr 52,500,000
↑ 52,500,000 Indian Oil Corporation Limited
Commercial Paper | -3% ₹499 Cr 50,000,000 L&T Finance Ltd.
Commercial Paper | -3% ₹449 Cr 45,000,000 Indian Oil Corporation Ltd.
Commercial Paper | -3% ₹448 Cr 45,000,000 India (Republic of)
- | -3% ₹446 Cr 45,000,000 Tata Capital Limited
Commercial Paper | -3% ₹439 Cr 44,000,000
↓ -1,000,000 Small Industries Development Bank Of India
Commercial Paper | -3% ₹399 Cr 40,000,000 5. Baroda Pioneer Liquid Fund
Baroda Pioneer Liquid Fund
Growth Launch Date 5 Feb 09 NAV (16 Sep 25) ₹3,037.71 ↑ 0.63 (0.02 %) Net Assets (Cr) ₹11,836 on 31 Jul 25 Category Debt - Liquid Fund AMC Baroda Pioneer Asset Management Co. Ltd. Rating ☆☆☆☆ Risk Low Expense Ratio 0.31 Sharpe Ratio 2.93 Information Ratio -1.27 Alpha Ratio -0.1 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 5.84% Effective Maturity 1 Month 9 Days Modified Duration 1 Month 9 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 20 ₹10,000 31 Aug 21 ₹10,325 31 Aug 22 ₹10,731 31 Aug 23 ₹11,455 31 Aug 24 ₹12,288 31 Aug 25 ₹13,129 Returns for Baroda Pioneer Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Sep 25 Duration Returns 1 Month 0.5% 3 Month 1.4% 6 Month 3.2% 1 Year 6.8% 3 Year 7% 5 Year 5.6% 10 Year 15 Year Since launch 6.9% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.3% 2023 7% 2022 4.9% 2021 3.3% 2020 4.1% 2019 6.6% 2018 7.5% 2017 6.7% 2016 7.8% 2015 8.4% Fund Manager information for Baroda Pioneer Liquid Fund
Name Since Tenure Gurvinder Wasan 21 Oct 24 0.86 Yr. Vikram Pamnani 14 Mar 22 3.47 Yr. Data below for Baroda Pioneer Liquid Fund as on 31 Jul 25
Asset Allocation
Asset Class Value Cash 99.79% Other 0.21% Debt Sector Allocation
Sector Value Cash Equivalent 77.63% Corporate 15.91% Government 6.24% Credit Quality
Rating Value AA 0.58% AAA 99.42% Top Securities Holdings / Portfolio
Name Holding Value Quantity Clearing Corporation Of India Ltd
CBLO/Reverse Repo | -7% ₹819 Cr Small Industries Development Bk Of India
Commercial Paper | -4% ₹495 Cr 10,000 91 Days Tbill Red 30-10-2025
Sovereign Bonds | -4% ₹494 Cr 50,000,000 India (Republic of)
- | -4% ₹494 Cr 50,000,000
↑ 50,000,000 91 Days Tbill (Md 28/08/2025)
Sovereign Bonds | -4% ₹447 Cr 45,000,000 Punjab National Bank
Domestic Bonds | -3% ₹300 Cr 6,000 Canara Bank
Certificate of Deposit | -3% ₹300 Cr 6,000 Small Industries Development Bank Of India
Commercial Paper | -3% ₹300 Cr 6,000 Grasim Industries Limited (12/09/2025) **
Commercial Paper | -3% ₹299 Cr 6,000 Indian Bank (28/10/2025) ** #
Certificate of Deposit | -2% ₹297 Cr 6,000
↑ 6,000 6. SBI Liquid Fund
SBI Liquid Fund
Growth Launch Date 22 Mar 07 NAV (16 Sep 25) ₹4,129.97 ↑ 0.83 (0.02 %) Net Assets (Cr) ₹68,443 on 31 Jul 25 Category Debt - Liquid Fund AMC SBI Funds Management Private Limited Rating ☆☆☆ Risk Low Expense Ratio 0.3 Sharpe Ratio 2.63 Information Ratio 0 Alpha Ratio 0 Min Investment 50,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 5.8% Effective Maturity 1 Month 10 Days Modified Duration 1 Month 6 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 20 ₹10,000 31 Aug 21 ₹10,321 31 Aug 22 ₹10,715 31 Aug 23 ₹11,429 31 Aug 24 ₹12,259 31 Aug 25 ₹13,097 Returns for SBI Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Sep 25 Duration Returns 1 Month 0.5% 3 Month 1.4% 6 Month 3.2% 1 Year 6.8% 3 Year 6.9% 5 Year 5.6% 10 Year 15 Year Since launch 6.9% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.3% 2023 6.9% 2022 4.8% 2021 3.3% 2020 4.2% 2019 6.5% 2018 7.3% 2017 6.6% 2016 7.6% 2015 8.3% Fund Manager information for SBI Liquid Fund
Name Since Tenure Rajeev Radhakrishnan 1 Dec 23 1.75 Yr. Data below for SBI Liquid Fund as on 31 Jul 25
Asset Allocation
Asset Class Value Cash 96.45% Debt 3.28% Other 0.27% Debt Sector Allocation
Sector Value Cash Equivalent 75.05% Corporate 17.85% Government 6.84% Credit Quality
Rating Value AA 0.45% AAA 99.55% Top Securities Holdings / Portfolio
Name Holding Value Quantity 91 Days Tbill Red 23-10-2025
Sovereign Bonds | -4% ₹2,673 Cr 270,000,000 Bharti Airtel Limited
Commercial Paper | -2% ₹1,496 Cr 30,000 Reliance Retail Ventures Limited
Commercial Paper | -2% ₹1,495 Cr 30,000 Bharti Airtel Ltd.
Commercial Paper | -2% ₹1,491 Cr 30,000 91 Days Tbill Red 30-10-2025
Sovereign Bonds | -2% ₹1,439 Cr 145,500,000
↑ 145,500,000 Cube Highways Trust
Commercial Paper | -2% ₹1,344 Cr 27,000 Indian Bank
Domestic Bonds | -2% ₹1,284 Cr 26,000
↑ 26,000 India (Republic of)
- | -2% ₹1,186 Cr 120,000,000
↑ 120,000,000 91 Days Tbill (Md 28/08/2025)
Sovereign Bonds | -2% ₹1,123 Cr 112,500,000 91 Days Tbill (Md 28/08/2025)
Sovereign Bonds | -2% ₹1,122 Cr 112,500,000
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!
By Rohini Hiremath
Rohini Hiremath works as a Content Head at Fincash.com. Her passion is to deliver financial knowledge to the masses in simple language. She has a strong background in start-ups and diverse content. Rohini is also an SEO expert, coach and motivating team head!
You can connect with her at rohini.hiremath@fincash.com
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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