Liquid funds come under the debt fund category, where they invest in debt or money market instruments. The debt and money market funds would consist of liquid funds, particularly mature within a period of 91 days. These can take up the role of being money market mutual funds so that you can park your surplus funds for a few weeks to a few months.
As the name says, they are funds with high liquidity, therefore, for investors who are looking for short-term investment for a few days or weeks, liquid funds can be a go-to investment option. You can also find the best liquid funds to invest in 2024 here below.
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Fund Name | Category | Risk | 1Y Returns | Rating | Fund Size(in Cr) |
---|---|---|---|---|---|
Aditya Birla Sun Life Liquid Fund | Debt | Moderate | 7.4% | 5 | ₹42,961 |
Mahindra Manulife Liquid Fund | Debt | Moderate | 7.4% | 5 | ₹1,061 |
Union Liquid Fund | Debt | Low to Moderate | 7.4% | 5 | ₹2,479 |
Baroda BNP Paribas Liquid Direct Fund | Debt | Low to Moderate | 7.3% | 4 | ₹7,894 |
Edelweiss Liquid Fund | Debt | Low to Moderate | 7.4% | 4 | ₹4,528 |
Bank of India Liquid Fund | Debt | Low to Moderate | 7.4% | 4 | ₹1,317 |
PGIM India Liquid Fund | Debt | Low to Moderate | 7.4% | 4 | ₹438 |
Axis Liquid Direct Fund | Debt | Moderate | 7.4% | 4 | ₹32,647 |
UTI Liquid Fund | Debt | Moderate | 7.3% | 4 | ₹23,329 |
Mirae Asset Liquid Fund | Debt | Low to Moderate | 7.4% | 4 | ₹9,883 |
Canara Robeco Liquid Fund | Debt | Low to Moderate | 7.3% | 4 | ₹3,624 |
Mirae Asset Cash Management Fund | Debt | Low to Moderate | 7.2% | 4 | ₹8,303 |
Sundaram Liquid Fund | Debt | Low to Moderate | 7.3% | 3 | ₹5,148 |
Nippon India Liquid Fund | Debt | Moderate | 7.4% | 3 | ₹32,095 |
HSBC Liquid Fund | Debt | Low to Moderate | 7.3% | 3 | ₹18,737 |
View All |
The individuals who can easily start investing in these funds are:
While searching for the best performing liquid funds, the factors to be considered before investing are:
Minimal risk: These are associated with lower risk compared to most other mutual funds. They provide stability across different interest rate cycles in the market by investing in high-quality securities with a maturity period of up to 91 days.
Low cost: The best liquid mutual funds are low-cost options as fund managers do not manage the portfolio of these schemes as actively as other types of debt funds. Most liquid funds have an expense ratio below 1%. This allows the fund to maximise returns for investors.
Fast redemption process: Fund houses process the redemption request of investors within one business day. Moreover, there are some AMCs that process redemption requests immediately. This is possible only because the underlying securities of these mutual fund schemes are highly liquid.
Flexible holding period: Investors may remain invested in a fund for as long as they want. They can even withdraw their funds in case of any urgency; no exit load is charged seventh day onwards from the date of purchase. That’s why these funds are a suitable option for investors looking to maintain a contingency fund.
Choice of investment mode: Individuals can invest in liquid funds in two ways – lump sum and systematic investment plan. By choosing the lumpsum route, investors can allocate the entire amount to a fund in one go. Conversely, a SIP allows one to invest in a scheme by depositing a fixed amount at regular intervals (monthly, quarterly, etc.).
While finding the top liquid funds for your investment, ensure to check these risks-
A liquid fund is a form of mutual fund that invests in securities with a residual maturity of up to a period of 91 days. Moreover, these funds do not have a lock-in period since the underlying assets are not for the long term.
Usually, individuals choose to invest in liquid funds for short tenure ranging from a day to 3 months.
Liquid mutual funds do not come with assured returns, yet they tend to provide higher returns than a term deposit. But, volatility is an essential factor that investors must consider before investing.
No. Although these funds do not hold a high-risk value, they are still exposed to the market, and the returns would not be guaranteed.
If an investor sells the liquid fund units held for less than a period of 3 years, it would be taxed under short-term capital gains tax.
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
Now let us jump and check about these top 15 mutual fund schemes.
Fund Performance: The Aditya Birla Sun Life Liquid Fund has given 5.75% annualized returns in the past three years and 5.34% in the last 5 years. The Aditya Birla Sun Life Liquid Fund comes under the Debt category of Aditya Birla Sun Life Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Aditya Birla Sun Life Liquid Fund via lump sum is ₹500 and via SIP is ₹100.
Min Investment Amt | ₹500 |
---|---|
AUM | ₹42,961Cr |
1Y Returns | 7.4% |
Fund Performance: The Mahindra Manulife Liquid Fund has given 5.75% annualized returns in the past three years and 5.35% in the last 5 years. The Mahindra Manulife Liquid Fund comes under the Debt category of Mahindra Mutual Funds.
Min Investment Amt | ₹1,000 |
---|---|
AUM | ₹1,061Cr |
1Y Returns | 7.4% |
Fund Performance: The Union Liquid Fund has given 5.73% annualized returns in the past three years and 5.3% in the last 5 years. The Union Liquid Fund comes under the Debt category of Union Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Union Liquid Fund via lump sum is ₹5,000 and via SIP is ₹500.
Min Investment Amt | ₹5,000 |
---|---|
AUM | ₹2,479Cr |
1Y Returns | 7.4% |
Fund Performance: The Baroda BNP Paribas Liquid Direct Fund has given 5.74% annualized returns in the past three years and 5.3% in the last 5 years. The Baroda BNP Paribas Liquid Direct Fund comes under the Debt category of Baroda BNP Paribas Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Baroda BNP Paribas Liquid Direct Fund via lump sum is ₹5,000 and via SIP is ₹500.
Min Investment Amt | ₹5,000 |
---|---|
AUM | ₹7,894Cr |
1Y Returns | 7.3% |
Fund Performance: The Edelweiss Liquid Fund has given 5.73% annualized returns in the past three years and 5.35% in the last 5 years. The Edelweiss Liquid Fund comes under the Debt category of Edelweiss Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Edelweiss Liquid Fund via lump sum is ₹100 and via SIP is ₹100.
Min Investment Amt | ₹100 |
---|---|
AUM | ₹4,528Cr |
1Y Returns | 7.4% |
Fund Performance: The Bank of India Liquid Fund has given 5.73% annualized returns in the past three years and 5.24% in the last 5 years. The Bank of India Liquid Fund comes under the Debt category of BOI AXA Mutual Funds.
Min Investment Amt | ₹5,000 |
---|---|
AUM | ₹1,317Cr |
1Y Returns | 7.4% |
Fund Performance: The PGIM India Liquid Fund has given 5.72% annualized returns in the past three years and 5.32% in the last 5 years. The PGIM India Liquid Fund comes under the Debt category of PGIM India Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in PGIM India Liquid Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
Min Investment Amt | ₹5,000 |
---|---|
AUM | ₹438Cr |
1Y Returns | 7.4% |
Fund Performance: The Axis Liquid Direct Fund has given 5.72% annualized returns in the past three years and 5.29% in the last 5 years. The Axis Liquid Direct Fund comes under the Debt category of Axis Mutual Funds.
Min Investment Amt | ₹500 |
---|---|
AUM | ₹32,647Cr |
1Y Returns | 7.4% |
Fund Performance: The UTI Liquid Fund has given 5.71% annualized returns in the past three years and 5.28% in the last 5 years. The UTI Liquid Fund comes under the Debt category of UTI Mutual Funds.
Min Investment Amt | ₹500 |
---|---|
AUM | ₹23,329Cr |
1Y Returns | 7.3% |
Fund Performance: The Mirae Asset Liquid Fund has given 5.71% annualized returns in the past three years and 5.28% in the last 5 years. The Mirae Asset Liquid Fund comes under the Debt category of Mirae Asset Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Mirae Asset Liquid Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
Min Investment Amt | ₹5,000 |
---|---|
AUM | ₹9,883Cr |
1Y Returns | 7.4% |
Fund Performance: The Canara Robeco Liquid Fund has given 5.68% annualized returns in the past three years and 5.09% in the last 5 years. The Canara Robeco Liquid Fund comes under the Debt category of Canara Robeco Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Canara Robeco Liquid Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
Min Investment Amt | ₹5,000 |
---|---|
AUM | ₹3,624Cr |
1Y Returns | 7.3% |
Fund Performance: The Mirae Asset Cash Management Fund has given 5.2% annualized returns in the past three years and 5.27% in the last 5 years. The Mirae Asset Cash Management Fund comes under the Debt category of Mirae Asset Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Mirae Asset Cash Management Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
Min Investment Amt | ₹5,000 |
---|---|
AUM | ₹8,303Cr |
1Y Returns | 7.2% |
Fund Performance: The Sundaram Liquid Fund has given 5.72% annualized returns in the past three years and 5.27% in the last 5 years. The Sundaram Liquid Fund comes under the Debt category of Sundaram Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Sundaram Liquid Fund via lump sum is ₹1,000 and via SIP is ₹1,000.
Min Investment Amt | ₹1,000 |
---|---|
AUM | ₹5,148Cr |
1Y Returns | 7.3% |
Fund Performance: The Nippon India Liquid Fund has given 5.71% annualized returns in the past three years and 5.31% in the last 5 years. The Nippon India Liquid Fund comes under the Debt category of Nippon India Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Nippon India Liquid Fund via lump sum is ₹1,000 and via SIP is ₹100.
Min Investment Amt | ₹1,000 |
---|---|
AUM | ₹32,095Cr |
1Y Returns | 7.4% |
Fund Performance: The HSBC Liquid Fund has given 5.7% annualized returns in the past three years and 5.24% in the last 5 years. The HSBC Liquid Fund comes under the Debt category of HSBC Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in HSBC Liquid Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
Min Investment Amt | ₹5,000 |
---|---|
AUM | ₹18,737Cr |
1Y Returns | 7.3% |
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