In liquid funds, short-term assets like treasury bills, government securities, repos, certificates of deposit, or commercial paper are invested in as debt. According to SEBI rules, liquid funds can only invest in debt and money market securities with 91-day maturities. Liquid funds' returns depend on the market price of their securities. Since short-term securities prices are less volatile than long-term bonds, liquid funds offer more steady returns than other debt funds.
Here, we will explore Liquid Mutual Funds and discuss everything you need to know about them before investing.
No Entry and Exit Load : Liquid mutual funds are highly liquid, they often do not have an entrance or exit load.
Variable Minimum Investment :The minimum amount required to invest in a liquid fund varies for each program.
Low-Interest Rate Risk :When compared to all other debt funds, liquid funds have the lowest interest rate risks. This is because liquid funds primarily invest in fixed-income assets with short maturities.
Lets have a closer look.
Now let us jump and check about these top 15 mutual fund schemes.
HSBC Liquid Fund
Fund Performance: The HSBC Liquid Fund Fund has given 6.62% annualized returns in the past three years and 5.25% in the last 5 years and 5.94% in the last 10 years. The HSBC Liquid Fund Fund comes under the Equity category of HSBC Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in HSBC Liquid Fund via lump sum is ₹ 5000 and via SIP is ₹ 1000.
Scheme Objective: The scheme seeks to generate reasonable returns while providing a high level of liquidity, through investments primarily in money market and debt securities, it caters to investors with a short to medium term investment horizon. It will invest upto 50 per cent of its assets in instruments with average maturity greater than 182 days and upto 100 per cent in instruments with average maturity less than 183 days.
Fund Performance: The BANK OF INDIA Liquid Fund Fund has given 5.99% annualized returns in the past three years and 5.21% in the last 5 years and 6.37% in the last 10 years. The BANK OF INDIA Liquid Fund Fund comes under the Equity category of Bank of India Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in BANK OF INDIA Liquid Fund via lump sum is ₹ 5000 and via SIP is ₹ 1000.
Scheme Objective: The fund aims to generate reasonable market related returns by investing in Money Market instruments. Also seeks to provide high liquidity to investors. The scheme would be investing more than 80% into securities having average maturity less than or equal to 6 months with low risk profile.
Scheme Manager: Mithraem Bharucha.
Min Amt SIP
: ₹ 1000
AUM in ( Cr.)
: ₹ 1442.27
1 Y Return (%)
: 7.41
Risko-Meter : Low to Moderate
Axis Liquid Fund
Fund Performance: The Axis Liquid Fund Fund has given 5.96% annualized returns in the past three years and 5.25% in the last 5 years and 6.42% in the last 10 years. The Axis Liquid Fund Fund comes under the Equity category of Axis Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Axis Liquid Fund via lump sum is ₹ 500 and via SIP is ₹ 1000.
Scheme Objective: The fund seeks to generate reasonable return commensurate with low risk and high degree of liquidity from a portfolio of money market and high quality debt securities.
Fund Performance: The LIC MF Liquid Fund Fund has given 5.88% annualized returns in the past three years and 5.19% in the last 5 years and 6.35% in the last 10 years. The LIC MF Liquid Fund Fund comes under the Equity category of LIC Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in LIC MF Liquid Fund via lump sum is ₹ 5000 and via SIP is ₹ 1000.
Scheme Objective: The scheme endevours to generate attractive return by investing predominantly in quality debt and money market securities. The scheme may also take a 20 per cent exposure to equity.
Scheme Manager: Rahul Singh.
Min Amt SIP
: ₹ 1000
AUM in ( Cr.)
: ₹ 10522.94
1 Y Return (%)
: 7.36
Risko-Meter : Moderate
Canara Robeco Liquid Fund
Fund Performance: The Canara Robeco Liquid Fund Fund has given 5.94% annualized returns in the past three years and 5.09% in the last 5 years and 6.26% in the last 10 years. The Canara Robeco Liquid Fund Fund comes under the Equity category of Canara Robeco Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Canara Robeco Liquid Fund via lump sum is ₹ 5000 and via SIP is ₹ 1000.
Scheme Objective: The fund seeks enhancement of income while maintaining a high level of liquidity through investment in a mix of money market instruments and debt securities.
