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6 Best Liquid Mutual Funds 2024
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 24 - 25
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 ₹2,786.82
↑ 0.51 ₹34,316 0.6 1.8 3.6 7.4 7.1 7.19% 1M 29D 1M 29D Aditya Birla Sun Life Liquid Fund Growth ₹403.443
↑ 0.07 ₹48,377 0.6 1.8 3.6 7.4 7.1 7.32% 2M 1D 2M 1D UTI Liquid Cash Plan Growth ₹4,107.36
↑ 0.75 ₹28,665 0.6 1.8 3.6 7.4 7 7.18% 1M 24D 1M 25D Mirae Asset Cash Management Fund Growth ₹2,625.85
↑ 0.48 ₹12,783 0.6 1.8 3.6 7.4 7 7.03% 1M 13D 1M 12D Baroda Pioneer Liquid Fund Growth ₹2,880.19
↑ 0.52 ₹11,490 0.6 1.7 3.5 7.3 7 7.04% 1M 6D 1M 6D ICICI Prudential Liquid Fund Growth ₹370.714
↑ 0.07 ₹51,423 0.6 1.8 3.6 7.4 7 7.12% 1M 10D 1M 14D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 20 Nov 24 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 (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 The investment objective of the scheme is to generate steady and reasonable income, with low risk and high level of liquidity from a portfolio of money market securities and high quality debt. UTI Liquid Cash Plan is a Debt - Liquid Fund fund was launched on 11 Dec 03. It is a fund with Low risk and has given a Below is the key information for UTI Liquid Cash Plan Returns up to 1 year are on The investment objective of the scheme
is to generate consistent returns with a
high level of liquidity in a judicious
portfolio mix comprising of money
market and debt instruments. The
Scheme does not guarantee any
returns. Mirae Asset Cash Management Fund is a Debt - Liquid Fund fund was launched on 12 Jan 09. It is a fund with Low risk and has given a Below is the key information for Mirae Asset Cash Management 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. Baroda Pioneer Liquid Fund is a Debt - Liquid Fund fund was launched on 5 Feb 09. It is a fund with Low risk and has given a Below is the key information for Baroda Pioneer 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 1. Axis Liquid Fund
CAGR/Annualized return of 7% since its launch. Ranked 21 in Liquid Fund category. Return for 2023 was 7.1% , 2022 was 4.9% and 2021 was 3.3% . Axis Liquid Fund
Growth Launch Date 9 Oct 09 NAV (20 Nov 24) ₹2,786.82 ↑ 0.51 (0.02 %) Net Assets (Cr) ₹34,316 on 15 Nov 24 Category Debt - Liquid Fund AMC Axis Asset Management Company Limited Rating ☆☆☆☆ Risk Low Expense Ratio 0.23 Sharpe Ratio 3.72 Information Ratio 0 Alpha Ratio 0 Min Investment 500 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.19% Effective Maturity 1 Month 29 Days Modified Duration 1 Month 29 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 19 ₹10,000 31 Oct 20 ₹10,466 31 Oct 21 ₹10,799 31 Oct 22 ₹11,269 31 Oct 23 ₹12,054 31 Oct 24 ₹12,947 Returns for Axis Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Nov 24 Duration Returns 1 Month 0.6% 3 Month 1.8% 6 Month 3.6% 1 Year 7.4% 3 Year 6.3% 5 Year 5.3% 10 Year 15 Year Since launch 7% Historical performance (Yearly) on absolute basis
Year Returns 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% 2014 9.1% Fund Manager information for Axis Liquid Fund
Name Since Tenure Devang Shah 5 Nov 12 12 Yr. Aditya Pagaria 13 Aug 16 8.22 Yr. Sachin Jain 3 Jul 23 1.33 Yr. Data below for Axis Liquid Fund as on 15 Nov 24
Asset Allocation
Asset Class Value Cash 99.78% Debt 0% Other 0.22% Debt Sector Allocation
Sector Value Cash Equivalent 67.49% Corporate 30.85% Government 1.43% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 182 DTB 01112024
Sovereign Bonds | -5% ₹1,715 Cr 172,000,000
↑ 35,000,000 91 DTB 21112024
Sovereign Bonds | -3% ₹1,168 Cr 117,500,000
↑ 500,000 HDFC Bank Limited
Certificate of Deposit | -3% ₹989 Cr 20,000 State Bank Of India
Certificate of Deposit | -3% ₹986 Cr 20,000
↑ 20,000 Export-Import Bank Of India
Commercial Paper | -3% ₹966 Cr 19,500 Reliance Retail Ventures Limited
Commercial Paper | -3% ₹895 Cr 18,000
↑ 1,000 91 DTB 07112024
Sovereign Bonds | -2% ₹862 Cr 86,500,000 Reliance Jio Infocomm Limited
Commercial Paper | -2% ₹744 Cr 15,000 IDFC First Bank Limited
Certificate of Deposit | -2% ₹744 Cr 15,000 Clearing Corporation Of India Ltd
CBLO/Reverse Repo | -2% ₹733 Cr 2. Aditya Birla Sun Life Liquid Fund
CAGR/Annualized return of 7% since its launch. Ranked 15 in Liquid Fund category. Return for 2023 was 7.1% , 2022 was 4.8% and 2021 was 3.3% . Aditya Birla Sun Life Liquid Fund
Growth Launch Date 30 Mar 04 NAV (20 Nov 24) ₹403.443 ↑ 0.07 (0.02 %) Net Assets (Cr) ₹48,377 on 31 Oct 24 Category Debt - Liquid Fund AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆ Risk Low Expense Ratio 0.34 Sharpe Ratio 3.76 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 7.32% Effective Maturity 2 Months 1 Day Modified Duration 2 Months 1 Day Growth of 10,000 investment over the years.
Date Value 31 Oct 19 ₹10,000 31 Oct 20 ₹10,468 31 Oct 21 ₹10,797 31 Oct 22 ₹11,262 31 Oct 23 ₹12,048 31 Oct 24 ₹12,937 Returns for Aditya Birla Sun Life Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Nov 24 Duration Returns 1 Month 0.6% 3 Month 1.8% 6 Month 3.6% 1 Year 7.4% 3 Year 6.3% 5 Year 5.3% 10 Year 15 Year Since launch 7% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.1% 2022 4.8% 2021 3.3% 2020 4.3% 2019 6.7% 2018 7.4% 2017 6.7% 2016 7.7% 2015 8.4% 2014 9.2% Fund Manager information for Aditya Birla Sun Life Liquid Fund
Name Since Tenure Sunaina Cunha 15 Jul 11 13.31 Yr. Kaustubh Gupta 15 Jul 11 13.31 Yr. Sanjay Pawar 1 Jul 22 2.34 Yr. Dhaval Joshi 21 Nov 22 1.95 Yr. Data below for Aditya Birla Sun Life Liquid Fund as on 31 Oct 24
Asset Allocation
Asset Class Value Cash 99.8% Other 0.2% Debt Sector Allocation
Sector Value Cash Equivalent 73.88% Corporate 25.92% Credit Quality
Rating Value AA 0.51% AAA 99.49% Top Securities Holdings / Portfolio
Name Holding Value Quantity Reverse Repo
CBLO/Reverse Repo | -7% ₹3,525 Cr 91 DTB 05122024
Sovereign Bonds | -3% ₹1,573 Cr 158,665,400 Punjab National Bank
Domestic Bonds | -3% ₹1,478 Cr 30,000
↑ 30,000 191 DTB 24102024
Sovereign Bonds | -2% ₹1,248 Cr 125,000,000 State Bank Of India
Certificate of Deposit | -2% ₹1,237 Cr 25,000 Net Receivables / (Payables)
Net Current Assets | -2% -₹1,217 Cr Punjab National Bank
Certificate of Deposit | -2% ₹996 Cr 20,000 Reliance Retail Ventures Limited
Commercial Paper | -2% ₹993 Cr 20,000 HDFC Bank Limited
Certificate of Deposit | -2% ₹993 Cr 20,000 LIC Housing Finance Limited
Commercial Paper | -2% ₹992 Cr 20,000 3. UTI Liquid Cash Plan
CAGR/Annualized return of 6.9% since its launch. Ranked 32 in Liquid Fund category. Return for 2023 was 7% , 2022 was 4.8% and 2021 was 3.3% . UTI Liquid Cash Plan
Growth Launch Date 11 Dec 03 NAV (20 Nov 24) ₹4,107.36 ↑ 0.75 (0.02 %) Net Assets (Cr) ₹28,665 on 31 Oct 24 Category Debt - Liquid Fund AMC UTI Asset Management Company Ltd Rating ☆☆☆ Risk Low Expense Ratio 0.26 Sharpe Ratio 3.97 Information Ratio 0 Alpha Ratio 0 Min Investment 500 Min SIP Investment 1,500 Exit Load NIL Yield to Maturity 7.18% Effective Maturity 1 Month 25 Days Modified Duration 1 Month 24 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 19 ₹10,000 31 Oct 20 ₹10,454 31 Oct 21 ₹10,788 31 Oct 22 ₹11,252 31 Oct 23 ₹12,034 31 Oct 24 ₹12,921 Returns for UTI Liquid Cash Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Nov 24 Duration Returns 1 Month 0.6% 3 Month 1.8% 6 Month 3.6% 1 Year 7.4% 3 Year 6.3% 5 Year 5.3% 10 Year 15 Year Since launch 6.9% Historical performance (Yearly) on absolute basis
Year Returns 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% 2014 9.1% Fund Manager information for UTI Liquid Cash Plan
Name Since Tenure Amit Sharma 7 Jul 17 7.33 Yr. Data below for UTI Liquid Cash Plan as on 31 Oct 24
Asset Allocation
Asset Class Value Cash 99.79% Other 0.21% Debt Sector Allocation
Sector Value Cash Equivalent 99.79% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Net Current Assets
Net Current Assets | -8% ₹2,337 Cr Cp Reliance Retail Ventures Limited
Net Current Assets | -7% ₹1,989 Cr 20,000,000,000
↑ 20,000,000,000 191 DTB 12/12/2024
Sovereign Bonds | -5% ₹1,539 Cr 15,500,000,000 91 DTB 28112024
Sovereign Bonds | -4% ₹1,075 Cr 10,800,000,000 Cp National Bank For Agriculture And Rural Development
Net Current Assets | -3% ₹892 Cr 9,000,000,000
↑ 9,000,000,000 Cp Reliance Jio Infocomm Ltd
Net Current Assets | -3% ₹794 Cr 8,000,000,000
↑ 8,000,000,000 91 DTB 05122024
Sovereign Bonds | -3% ₹789 Cr 7,933,280,000 Cd - Indian Bank - 01/01/25
Net Current Assets | -3% ₹741 Cr 7,500,000,000
↑ 7,500,000,000 Cd - Hdfc Bank - 12/12/24
Net Current Assets | -2% ₹694 Cr 7,000,000,000
↑ 7,000,000,000 Cd - Axis Bank - 26/12/24
Net Current Assets | -2% ₹668 Cr 6,750,000,000
↑ 6,750,000,000 4. Mirae Asset Cash Management Fund
CAGR/Annualized return of 6.3% since its launch. Ranked 48 in Liquid Fund category. Return for 2023 was 7% , 2022 was 4.8% and 2021 was 3.3% . Mirae Asset Cash Management Fund
Growth Launch Date 12 Jan 09 NAV (20 Nov 24) ₹2,625.85 ↑ 0.48 (0.02 %) Net Assets (Cr) ₹12,783 on 31 Oct 24 Category Debt - Liquid Fund AMC Mirae Asset Global Inv (India) Pvt. Ltd Rating ☆☆ Risk Low Expense Ratio 0.15 Sharpe Ratio 4.08 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.03% Effective Maturity 1 Month 12 Days Modified Duration 1 Month 13 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 19 ₹10,000 31 Oct 20 ₹10,451 31 Oct 21 ₹10,792 31 Oct 22 ₹11,256 31 Oct 23 ₹12,036 31 Oct 24 ₹12,924 Returns for Mirae Asset Cash Management Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Nov 24 Duration Returns 1 Month 0.6% 3 Month 1.8% 6 Month 3.6% 1 Year 7.4% 3 Year 6.3% 5 Year 5.3% 10 Year 15 Year Since launch 6.3% Historical performance (Yearly) on absolute basis
Year Returns 2023 7% 2022 4.8% 2021 3.3% 2020 4.2% 2019 6.6% 2018 7.3% 2017 6.6% 2016 7.2% 2015 7.8% 2014 8.7% Fund Manager information for Mirae Asset Cash Management Fund
Name Since Tenure Amit Modani 1 Nov 24 0 Yr. Abhishek Iyer 28 Dec 20 3.85 Yr. Data below for Mirae Asset Cash Management Fund as on 31 Oct 24
Asset Allocation
Asset Class Value Cash 99.81% Other 0.19% Debt Sector Allocation
Sector Value Cash Equivalent 65.64% Corporate 34.17% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Canara Bank
Certificate of Deposit | -3% ₹445 Cr 45,000,000
↑ 17,500,000 Treps
CBLO/Reverse Repo | -3% ₹351 Cr 091 D Tbill Mat - 18/10/24
Sovereign Bonds | -3% ₹350 Cr 35,000,000 Punjab National Bank
Certificate of Deposit | -2% ₹346 Cr 35,000,000
↑ 25,000,000 Reliance Retail Ventures Limited
Commercial Paper | -2% ₹296 Cr 30,000,000
↑ 30,000,000 191 DTB 24102024
Sovereign Bonds | -2% ₹250 Cr 25,000,000 364 DTB 21112024
Sovereign Bonds | -2% ₹224 Cr 22,500,000 182 DTB 18112024
Sovereign Bonds | -2% ₹224 Cr 22,500,000 Reliance Jio Infocomm Limited
Commercial Paper | -1% ₹199 Cr 20,000,000 91 Day T-Bill 15.11.24
Sovereign Bonds | -1% ₹199 Cr 20,000,000 5. Baroda Pioneer Liquid Fund
CAGR/Annualized return of 6.9% since its launch. Ranked 22 in Liquid Fund category. Return for 2023 was 7% , 2022 was 4.9% and 2021 was 3.3% . Baroda Pioneer Liquid Fund
Growth Launch Date 5 Feb 09 NAV (20 Nov 24) ₹2,880.19 ↑ 0.52 (0.02 %) Net Assets (Cr) ₹11,490 on 31 Oct 24 Category Debt - Liquid Fund AMC Baroda Pioneer Asset Management Co. Ltd. Rating ☆☆☆☆ Risk Low Expense Ratio 0.3 Sharpe Ratio 3.14 Information Ratio -2.95 Alpha Ratio -0.18 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 7.04% Effective Maturity 1 Month 6 Days Modified Duration 1 Month 6 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 19 ₹10,000 31 Oct 20 ₹10,452 31 Oct 21 ₹10,790 31 Oct 22 ₹11,260 31 Oct 23 ₹12,042 31 Oct 24 ₹12,923 Returns for Baroda Pioneer Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Nov 24 Duration Returns 1 Month 0.6% 3 Month 1.7% 6 Month 3.5% 1 Year 7.3% 3 Year 6.3% 5 Year 5.3% 10 Year 15 Year Since launch 6.9% Historical performance (Yearly) on absolute basis
Year Returns 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% 2014 9.1% Fund Manager information for Baroda Pioneer Liquid Fund
Name Since Tenure Gurvinder Wasan 21 Oct 24 0.03 Yr. Vikram Pamnani 14 Mar 22 2.64 Yr. Data below for Baroda Pioneer Liquid Fund as on 31 Oct 24
Asset Allocation
Asset Class Value Cash 99.83% Other 0.17% Debt Sector Allocation
Sector Value Cash Equivalent 99.83% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Clearing Corporation Of India Ltd
CBLO/Reverse Repo | -6% ₹659 Cr 91 Day T-Bill 15.11.24
Sovereign Bonds | -5% ₹599 Cr 60,000,000 State Bank Of India (27/12/2024) ** #
Net Current Assets | -5% ₹594 Cr 12,000
↑ 12,000 91 DTB 05122024
Sovereign Bonds | -4% ₹506 Cr 50,866,600 Axis Bank Limited (28/11/2024) ** #
Net Current Assets | -4% ₹473 Cr 9,500
↑ 9,500 Larsen & Toubro Limited (27/11/2024) **
Net Current Assets | -3% ₹398 Cr 8,000
↑ 8,000 Export Import Bank Of India (10/12/2024) **
Net Current Assets | -3% ₹347 Cr 7,000
↑ 7,000 364 DTB 0205202407112024
Sovereign Bonds | -3% ₹315 Cr 31,500,000 Canara Bank (25/11/2024) ** #
Net Current Assets | -3% ₹299 Cr 6,000
↑ 6,000 Punjab National Bank (27/11/2024) ** #
Net Current Assets | -3% ₹299 Cr 6,000
↑ 6,000 6. ICICI Prudential Liquid Fund
CAGR/Annualized return of 7.1% since its launch. Ranked 20 in Liquid Fund category. Return for 2023 was 7% , 2022 was 4.8% and 2021 was 3.2% . ICICI Prudential Liquid Fund
Growth Launch Date 17 Nov 05 NAV (20 Nov 24) ₹370.714 ↑ 0.07 (0.02 %) Net Assets (Cr) ₹51,423 on 31 Oct 24 Category Debt - Liquid Fund AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Low Expense Ratio 0.29 Sharpe Ratio 3.84 Information Ratio -2.79 Alpha Ratio -0.12 Min Investment 500 Min SIP Investment 99 Exit Load NIL Yield to Maturity 7.12% Effective Maturity 1 Month 14 Days Modified Duration 1 Month 10 Days Growth of 10,000 investment over the years.
Date Value 31 Oct 19 ₹10,000 31 Oct 20 ₹10,464 31 Oct 21 ₹10,793 31 Oct 22 ₹11,251 31 Oct 23 ₹12,025 31 Oct 24 ₹12,915 Returns for ICICI Prudential Liquid Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 20 Nov 24 Duration Returns 1 Month 0.6% 3 Month 1.8% 6 Month 3.6% 1 Year 7.4% 3 Year 6.2% 5 Year 5.3% 10 Year 15 Year Since launch 7.1% Historical performance (Yearly) on absolute basis
Year Returns 2023 7% 2022 4.8% 2021 3.2% 2020 4.3% 2019 6.6% 2018 7.4% 2017 6.6% 2016 7.7% 2015 8.3% 2014 9.1% Fund Manager information for ICICI Prudential Liquid Fund
Name Since Tenure Nikhil Kabra 1 Dec 23 0.92 Yr. Darshil Dedhia 12 Jun 23 1.39 Yr. Data below for ICICI Prudential Liquid Fund as on 31 Oct 24
Asset Allocation
Asset Class Value Cash 99.81% Other 0.19% Debt Sector Allocation
Sector Value Cash Equivalent 67.72% Corporate 27.17% Government 4.91% Credit Quality
Rating Value AA 0.68% AAA 99.32% Top Securities Holdings / Portfolio
Name Holding Value Quantity Punjab National Bank
Certificate of Deposit | -4% ₹2,000 Cr 40,500 Govt Stock
Sovereign Bonds | -3% ₹1,739 Cr 174,000,000 Reliance Retail Ventures Limited
Commercial Paper | -3% ₹1,492 Cr 30,000 India (Republic of)
- | -3% ₹1,468 Cr 149,013,200
↑ 149,013,200 Bank Of India
Certificate of Deposit | -2% ₹1,242 Cr 25,000 HDFC Bank Limited
Certificate of Deposit | -2% ₹1,212 Cr 24,500 191 DTB 24102024
Sovereign Bonds | -2% ₹1,103 Cr 110,483,500 HDFC Bank Limited
Certificate of Deposit | -2% ₹993 Cr 20,000 Reliance Retail Ventures Limited
Commercial Paper | -2% ₹993 Cr 20,000 191 DTB 12/12/2024
Sovereign Bonds | -2% ₹990 Cr 100,000,000
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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