Best Liquid Funds In India

The table below shows the Best Liquid Funds In India Based on AUM, NAV, and minimum SIP. 

Content :

• Top 10 Liquid Funds In India
• Best Liquid Funds
• Best Liquid Funds In India
• Top Liquid Funds
• Best Liquid Funds In India – FAQs
• Introduction to Best Liquid Funds In India

Top 10 Liquid Funds In India

The table below shows the Top 10 Liquid Funds In India based on the lowest to highest expense ratio. 

Best Liquid Funds

The table below shows the Best Liquid Funds In India based on the Highest 3Y CAGR. 

Best Liquid Funds In India

The table below shows Best Liquid Funds In India based on exit load i.e the fee that the AMC charges investors when exiting or redeeming their fund units.

Top Liquid Funds

The table below shows Top Liquid Funds based on Absolute Return 1 Year and AMC. 

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Best Liquid Funds In India – FAQs  

1. What are the top 5 liquid funds?

Based on the Assets under management ( AUM ) listed top  5 liquid funds.

• Top Liquid Funds #1: SBI Liquid Fund
• Top Liquid Funds #2: HDFC Liquid Fund
• Top Liquid Funds #3: ICICI Pru Liquid Fund
• Top Liquid Funds #4: Aditya Birla SL Liquid Fund
• Top Liquid Funds #5: Kotak Liquid Fund

2. What are the liquid funds?

Liquid funds are mutual funds that primarily invest in short-term money market instruments, providing investors with low-risk, high-liquidity options. They offer stability and quick redemption.

3. Which liquid fund has the highest returns?

Based on the highest 3-year CAGR listed in the top 5 liquid funds.

• Liquid Funds #1: Quant Liquid Plan
• Liquid Funds #2: Mahindra Manulife Liquid Fund
• Liquid Funds #3: Baroda BNP Paribas Liquid Fund
• Liquid Funds #4: Edelweiss Liquid Fund
• Liquid Funds #5: Aditya Birla SL Liquid Fund

4. Is a liquid fund safer than FD?

Liquid funds and fixed deposits (FDs) have different risk profiles. While liquid funds carry a slightly higher risk due to market fluctuations, they often offer better returns and liquidity than FDs, making them suitable for short-term investments. FDs, on the other hand, are considered safer but may provide lower returns. 

5. Is SIP allowed in liquid funds?

A Systematic Investment Plan (SIP) is allowed in liquid funds. Investors can opt for SIP in liquid funds to invest a fixed amount regularly. 

6. Is liquid fund tax-free?

The returns from liquid funds are not entirely tax-free. While the capital gains from liquid funds held for more than three years qualify for long-term capital gains tax with indexation benefit, gains from holding for three years or less are treated as short-term capital gains and taxed as per the individual’s income tax slab.

Introduction to Best Liquid Funds In India

Best Liquid Funds In India – AUM, NAV

SBI Liquid Fund

The key aim of the SBI Liquid Fund Direct Plan-Growth scheme is to demonstrate a consistent capacity to generate returns, aligning with the performance of the majority of funds in its category.

Key Metrics 

The SBI Liquid Fund, with a moderately low risk profile, features an exit load of 0.01 and an expense ratio of 0.18. Over the past three years, it has delivered a stable compound annual growth rate (CAGR) of 4.95%. Currently, the fund manages assets totaling 62,037.95. These metrics, including exit load, expense ratio, CAGR, and assets under management, provide a concise overview for investors evaluating the SBI Liquid Fund, encapsulating both performance history and associated financial parameters.

Portfolio

The SBI Liquid Fund strategically allocates its portfolio with a predominant distribution in Commercial Paper (44.77%). Additionally, it diversifies its holdings with 27.53% in Certificate of Deposit, 25.01% in Treasury Bills, and 2.20% in government securities. This distribution mix aims to balance returns and risks, with an emphasis on short-term, highly liquid instruments. 

HDFC Liquid Fund

The key objective of the HDFC Liquid Direct Plan-Growth scheme has demonstrated a commendable ability to consistently deliver returns, aligning with the performance standards of most funds within its category. Notably, this fund boasts a substantial track record, having been in existence for 10 years and 10 months.

Key Metrics

The HDFC Liquid Fund exhibits a moderately low level of risk, making it an appealing choice for risk-averse investors. This fund imposes an exit load of 0.01, implying a charge upon withdrawal. With an expense ratio of 0.2, it reflects the proportion of assets deducted annually for management and operational expenses. Over the past three years, the fund has delivered a stable compound annual growth rate (CAGR) of 4.92%, underscoring its consistent performance. As of the latest reporting, the fund’s assets under management (AUM) stand at 52,229.32, indicating the scale of assets entrusted to its management.

Portfolio

The HDFC Liquid Fund strategically allocates its portfolio with a diverse distribution, emphasizing liquidity and stability. The fund allocates 46.28% to Commercial Paper, 26.32% to Certificate of Deposit, 21.51% to Treasury Bills, and 1.79% to government securities. Additionally, 2.44% is maintained in cash and equivalents, further enhancing liquidity. 

ICICI Pru Liquid Fund

The ICICI Prudential Liquid Fund Direct Plan-Growth, an offering from ICICI Prudential Mutual Fund, has a decade-long track record in the market. With a robust credit profile, the fund has primarily extended loans to borrowers of exceptional quality. Nevertheless, its 10 years and 10 months of existence underscore a sustained presence, reflecting the fund’s experience and stability in navigating the financial landscape. 

Key Metrics

The ICICI Prudential Liquid Fund maintains a profile that appeals to risk-averse investors, categorized as having a moderately low risk. With an exit load of 0.01, the fund imposes a charge upon withdrawal. The expense ratio, standing at 0.2, signifies the proportion of assets deducted annually for management and operational expenses. Over the past three years, the fund has demonstrated a stable compound annual growth rate (CAGR) of 4.93%, indicating consistent performance. As of the latest reporting, the fund’s assets under management (AUM) amount to 40,639.23, reflecting the scale of assets entrusted to its management.

Portfolio

The ICICI Prudential Liquid Fund adopts a strategic distribution mix to optimize liquidity and balance risk. Notably, the fund allocates 49.71% to Commercial Paper, 27.11% to Certificate of Deposit, 17.21% to Treasury Bills, and 2.93% to government securities. Additionally, 2.69% is maintained in cash and equivalents, enhancing overall liquidity. This diversified distribution aligns with the fund’s objective, ensuring a well-balanced portfolio across various short-term, highly liquid instruments within the specified categories.

Top 10 Liquid Funds In India – Expense Ratio

Canara Rob Liquid-Unclaimed Redemption and Dividend Plan

The Canara Robeco Liquid Regular Plan-Growth scheme demonstrates consistent return delivery, aligning with the performance of most funds in its category. However, its capacity to mitigate losses during a market downturn is considered below average. This fund has been operational for a duration of 15 years and 4 months.

Key Metrics

The Canara Robeco Liquid-Unclaimed Redemption and Dividend Plan features an exit load of 0.01, indicating a nominal charge upon redemption. The expense ratio for this plan stands at 0.08, reflecting the proportion of fund assets allocated to cover operating expenses. With a 3-year Compound Annual Growth Rate (CAGR) of 4.99, the fund has demonstrated a steady performance over this period. The Assets Under Management (AUM) for this plan currently amount to 3813.48. In terms of risk, the fund is classified as Moderately Low, suggesting a relatively stable investment profile. 

Portfolio

The Canara Robeco Liquid-Unclaimed Redemption and Dividend Plan strategically allocates its portfolio with 37.69% in Commercial Paper, enhancing liquidity, and 27.29% in Certificate of Deposit for diversification. Treasury Bills make up 20.49%, contributing to stability, while 14.36% is reserved in cash and equivalents. This distribution reflects the fund’s commitment to a balanced and varied investment approach, providing investors with a well-structured strategy for optimizing returns and managing risk effectively.

Edelweiss Liquid Fund

Edelweiss Liquid Direct-Growth, part of Edelweiss Mutual Fund, is a liquid mutual fund scheme with a tenure of 10 years and 10 months. The fund boasts a remarkably high credit profile, suggesting that it has extended loans of exceptional quality to borrowers.

Key Metrics

The Edelweiss Liquid Fund exhibits a financial profile characterized by an exit load of 0.1, representing a relatively minor charge upon redemption. With an expense ratio of 0.08, the fund efficiently manages operating costs in proportion to its assets. Over the past three years, the Compound Annual Growth Rate (CAGR) for the fund has been recorded at 5.01, indicating a consistent and positive performance trajectory. The Assets Under Management (AUM) presently stand at 3194.29. This fund is categorized as having a Moderately Low risk profile, indicating a balanced approach to risk management.

Portfolio

The Edelweiss Liquid Fund adopts a strategic asset distribution across various financial instruments. Notably, the fund allocates a significant portion, 47.30%, to Commercial Paper, bolstering liquidity and income generation. Certificate of Deposit holds a substantial share at 31.01%, contributing to the fund’s diversification. Treasury Bills account for 20.21%, enhancing stability and low-risk characteristics. A conservative approach is evident with 1.37% reserved in cash and equivalents. This diversified distribution across Commercial Paper, Certificate of Deposit, Treasury Bills, and cash equivalents underscores the Edelweiss Liquid Fund’s commitment to a balanced investment strategy, catering to both liquidity and stability objectives.

Union Liquid Fund

Union Liquid Fund Direct-Growth, offered by Union Mutual Fund, is a liquid mutual fund scheme that has been operational for 10 years and 10 months. The fund’s primary investments are concentrated in entities such as Reserve Bank of India, Axis Bank Ltd., Canara Bank, Bank of Baroda, and LIC Housing Finance Ltd.

Key Metrics

The Union Liquid Fund features an exit load of 0.01, representing a relatively modest charge upon redemption. With an expense ratio of 0.08, the fund effectively manages operating costs relative to its assets. Over the past three years, the Compound Annual Growth Rate (CAGR) for the fund has been recorded at 5.01, indicating a consistent and positive performance trajectory. As of the latest reporting, the Assets Under Management (AUM) stand at 2861.50. This fund is classified as having a Moderately Low risk profile, showcasing a balanced approach to risk management.

Portfolio

The Union Liquid Fund employs a diversified allocation strategy across various financial instruments. A significant portion, 38.66%, is allocated to Commercial Paper, contributing to liquidity and income generation. Certificate of Deposit holds a substantial share at 33.52%, enhancing diversification. Treasury Bills are represented at 17.37%, supporting stability with low-risk holdings. Additionally, 10.3% is reserved in cash and equivalents, emphasizing liquidity. The fund also includes government securities, comprising 14.36% of its portfolio. 

Best Liquid Funds – CAGR 3Y

Quant Liquid Plan

The Quant Liquid Direct Fund-Growth is a liquid mutual fund scheme offered by Quant Mutual Fund, boasting a tenure of 10 years and 10 months. The fund’s major investments are strategically placed in entities such as Reserve Bank of India, Reliance Retail Ventures Ltd, Bajaj Housing Finance Ltd.

Key Metrics

The Quant Liquid Plan exhibits a nuanced financial profile with an exit load of 0.01, indicating a nominal charge upon redemption. Operating efficiently, the fund maintains an expense ratio of 0.29 relative to its assets. Over the past three years, the Compound Annual Growth Rate (CAGR) for the fund has been noteworthy at 5.33, showcasing a consistent and positive performance trend. As of the latest reporting, the Assets Under Management (AUM) stand at 1795.03. With a Moderately Low risk classification, the fund demonstrates a balanced approach to risk management.

Portfolio

The Quant Liquid Plan employs a strategic distribution strategy across diverse financial instruments. A significant portion, 56.18%, is allocated to Commercial Paper, emphasizing liquidity and income generation. Certificate of Deposit holds a proportionate share at 11.07%, contributing to the fund’s diversification. Treasury Bills are strategically allocated at 24.91%, aligning with the fund’s focus on low-risk holdings. Additionally, 7.64% is reserved in cash and equivalents, underscoring the importance of liquidity. 

Mahindra Manulife Liquid Fund

The Mahindra Manulife Liquid Fund Direct-Growth is a liquid mutual fund scheme offered by Mahindra Manulife Mutual Fund, with a tenure of 7 years and 4 months. The fund has demonstrated a consistent ability to deliver returns, aligning with the performance trends observed in most funds within its category. 

Key Metrics

The Mahindra Manulife Liquid Fund features an exit load of 0.01, representing a modest charge upon redemption. With an expense ratio of 0.15, the fund efficiently manages operational costs relative to its assets. Over the past three years, the Compound Annual Growth Rate (CAGR) for the fund has been recorded at 5.04, indicating a consistent and positive performance trajectory. As of the latest reporting, the Assets Under Management (AUM) stand at 743.60. Classified with a Moderately Low risk profile, the fund demonstrates a balanced approach to managing risk. 

Portfolio

The Mahindra Manulife Liquid Fund strategically allocates its portfolio across diverse financial instruments. A significant portion, 41.44%, is dedicated to Commercial Paper, emphasizing liquidity and income generation. Certificate of Deposit holds a substantial share at 26.67%, contributing to the fund’s diversification. Treasury Bills are allocated at 11.71%, aligning with the fund’s focus on low-risk holdings. Additionally, 9.37% is reserved in cash and equivalents, underlining the importance of liquidity. The fund also includes government securities, comprising 7.34% of its portfolio.

Baroda BNP Paribas Liquid Fund

Baroda BNP Paribas Liquid Direct Fund-Growth is a liquid mutual fund scheme offered by Baroda BNP Paribas Mutual Fund, with a track record spanning 10 years and 10 months. The fund’s performance is characterized by its ability to consistently deliver returns, aligning with the trends observed in most funds within its category. 

Key Metrics

The Baroda BNP Paribas Liquid Fund exhibits a financial profile with an exit load of 0.01, signifying a nominal charge upon redemption. Operating efficiently, the fund maintains an expense ratio of 0.19 relative to its assets. Over the past three years, the Compound Annual Growth Rate (CAGR) for the fund has been noteworthy at 5.03, indicating a consistent and positive performance trajectory. As of the latest reporting, the Assets Under Management (AUM) stand at 9643.76. Classified with a Moderately Low risk profile, the fund reflects a balanced approach to managing risk.

Portfolio

The Baroda BNP Paribas Liquid Fund strategically allocates its portfolio across various financial instruments to achieve a balanced investment approach. A significant proportion, 49.57%, is directed towards Commercial Paper, emphasizing liquidity and income generation. Certificate of Deposit holds a considerable share at 23.75%, contributing to the fund’s diversification. Treasury Bills are allocated at 15.64%, aligning with the fund’s focus on low-risk holdings. Additionally, 10.64% is reserved in cash and equivalents, underlining the importance of liquidity in the fund’s investment strategy. 

Best Liquid Funds In India – Exit Load 

Tata Liquid Fund

The Tata Liquid Fund Direct-Growth is a liquid mutual fund scheme offered by Tata Mutual Fund, with a history spanning 10 years and 10 months. This fund’s key investments are strategically placed in entities such as the Reserve Bank of India, Bank of Baroda, and the National Bank for Agriculture & Rural Development. 

Key Metrics

The Tata Liquid Fund features an exit load of 0.01, representing a nominal charge upon redemption. Operating with efficiency, the fund maintains a competitive expense ratio of 0.21 relative to its assets. Over the past three years, the Compound Annual Growth Rate (CAGR) for the fund has been recorded at 4.95, indicating a consistent and positive performance trend. As of the latest reporting, the Assets Under Management (AUM) stand impressively at 20002.21. Classified with a Moderately Low risk profile, the fund demonstrates a balanced approach to managing risk. 

Portfolio

The Tata Liquid Fund strategically allocates its portfolio across diverse financial instruments to achieve a well-balanced investment strategy. A substantial 52.69% is allocated to Commercial Paper, emphasizing liquidity and income generation. Certificate of Deposit holds a noteworthy share at 24.26%, contributing to the fund’s diversification. Treasury Bills are strategically allocated at 21.90%, aligning with the fund’s focus on low-risk holdings. Furthermore, the fund includes government securities, comprising 1.28% of its portfolio.  

Franklin India Liquid Fund-Super

The Franklin India Liquid Fund Direct-Growth is a liquid mutual fund scheme offered by Franklin Templeton Mutual Fund, with a track record spanning 10 years and 10 months. The fund strategically positions its top holdings in entities such as the Reserve Bank of India, Canara Bank, Bank of Baroda, Small Industries Development Bank of India Ltd., and Union Bank of India.

Key Metrics

The Franklin India Liquid Fund-Super features an exit load of 0.01, representing a modest charge upon redemption. Operating efficiently, the fund maintains a competitive expense ratio of 0.13 relative to its assets. Over the past three years, the Compound Annual Growth Rate (CAGR) for the fund has been recorded at 4.95, indicating a consistent and positive performance trajectory. As of the latest reporting, the Assets Under Management (AUM) stands at 1894.29. Classified with a Moderately Low risk profile, the fund demonstrates a balanced approach to managing risk.

Portfolio

The Franklin India Liquid Fund strategically allocates its portfolio across various financial instruments to achieve a balanced investment approach. Notably, it allocates 34.71% to Commercial Paper, emphasizing liquidity and income generation. Certificate of Deposit holds a significant share at 42.49%, contributing to the fund’s diversification. Treasury Bills are strategically allocated at 20.98%, aligning with the fund’s focus on low-risk holdings. Additionally, a portion of 0.98% is reserved in cash and equivalents, highlighting the importance of liquidity.

Canara Rob Liquid Fund

The Canara Robeco Liquid Direct Plan-Growth is a liquid mutual fund scheme offered by Canara Robeco Mutual Fund, with a tenure of 10 years and 10 months. The fund has demonstrated a consistent ability to deliver returns, aligning with the performance trends observed in most funds within its category. Investors may find the Canara Robeco Liquid Direct Plan-Growth an appealing option for its history of providing reliable returns within the parameters of its fund category.

Key Metrics

The Canara Robeco Liquid Fund features an exit load of 0.01, representing a modest charge upon redemption. Operating efficiently, the fund maintains a competitive expense ratio of 0.12 relative to its assets. Over the past three years, the Compound Annual Growth Rate (CAGR) for the fund has been recorded at 4.93, indicating a consistent and positive performance trend. As of the latest reporting, the Assets Under Management (AUM) stand at 3813.48. Classified with a Moderately Low risk profile, the fund demonstrates a balanced approach to managing risk. I

Portfolio

The Canara Robeco Liquid Fund strategically allocates its portfolio across various financial instruments to achieve a well-balanced investment strategy. Notably, it allocates 37.69% to Commercial Paper, emphasizing liquidity and income generation. Certificate of Deposit holds a significant share at 27.29%, contributing to the fund’s diversification. Treasury Bills are strategically allocated at 20.49%, aligning with the fund’s focus on low-risk holdings. Additionally, a portion of 14.36% is reserved in cash and equivalents, underlining the importance of liquidity. 

Top Liquid Funds – Absolute Returns – 1Y

Aditya Birla SL Liquid Fund

The Aditya Birla Sun Life Liquid Fund Direct-Growth is a liquid mutual fund scheme offered by Aditya Birla Sun Life Mutual Fund, with a track record spanning 10 years and 10 months. Notably, the fund boasts a very high credit profile, indicative of lending to borrowers of excellent quality. 

Key Metrics

The Aditya Birla Sun Life Liquid Fund features an exit load of 0.01, indicating a nominal charge upon redemption. Operating efficiently, the fund maintains a competitive expense ratio of 0.21 relative to its assets. Over the past three years, the Compound Annual Growth Rate (CAGR) for the fund has been recorded at 5.01, demonstrating consistent and positive performance. As of the latest reporting, the Assets Under Management (AUM) stand impressively at 32542.19. 

Portfolio

The Aditya Birla Sun Life Liquid Fund prudently allocates its portfolio across various financial instruments, embodying a diversified investment strategy. A substantial 51.93% is devoted to Commercial Paper, emphasizing liquidity and income generation. Certificate of Deposit holds a notable share at 30.8%, contributing to the fund’s diversification. Treasury Bills account for 4.14%, aligning with the fund’s focus on low-risk holdings. Furthermore, 8.75% is reserved in cash and equivalents, underlining the significance of liquidity. Additionally, the fund includes government securities, comprising 3.41% of its portfolio. 

PGIM India Liquid Fund

The PGIM India Liquid Fund Direct Plan-Growth is a liquid mutual fund scheme offered by PGIM India Mutual Fund, with a tenure of 10 years and 10 months. The fund has demonstrated a consistent ability to deliver returns, aligning with the performance trends observed in most funds within its category. 

Key Metrics

The PGIM India Liquid Fund is characterized by a financial profile that includes an exit load of 0.0055, signifying a modest charge upon redemption. Operating efficiently, the fund maintains a competitive expense ratio of 0.13 relative to its assets. Over the past three years, the Compound Annual Growth Rate (CAGR) for the fund has been noteworthy at 5.00, indicating a consistent and positive performance trend. As of the latest reporting, the Assets Under Management (AUM) stand at 433.80. Classified with a Moderately Low risk profile, the fund demonstrates a balanced approach to managing risk. 

Portfolio

The PGIM India Liquid Fund employs a strategic distribution of its portfolio across various financial instruments, reflecting a well-balanced investment strategy. A substantial 59.55% is allocated to Commercial Paper, underscoring the focus on liquidity and income generation. Certificate of Deposit holds a significant share at 14.23%, contributing to the fund’s diversification. Treasury Bills are allocated at 12.35%, aligning with the fund’s emphasis on low-risk holdings. Additionally, the fund includes government securities, comprising 9.15% of its portfolio, and corporate debt, representing 8.87%.

HSBC Liquid Fund

The HSBC Liquid Fund Direct-Growth is a liquid mutual fund scheme offered by HSBC Mutual Fund, with a track record spanning 10 years and 10 months. The fund strategically positions its top holdings in entities such as the Reserve Bank of India, Canara Bank, Bank of Baroda, and the National Bank for Agriculture & Rural Development. 

Key Metrics

The HSBC Liquid Fund is characterized by its financial parameters, showcasing an exit load of 0.01, indicating a nominal charge upon redemption. Operating efficiently, the fund maintains a competitive expense ratio of 0.12 relative to its assets. Over the past three years, the Compound Annual Growth Rate (CAGR) for the fund has been noteworthy at 4.98, suggesting a consistent and positive performance trend. As of the latest reporting, the Assets Under Management (AUM) stand at an impressive 14756.49. Classified with a Moderately Low risk profile, the fund reflects a balanced approach to managing risk.

Portfolio

The HSBC Liquid Fund employs a strategic distribution strategy, allocating its portfolio across various financial instruments for a balanced investment approach. A substantial 55.05% is dedicated to Commercial Paper, emphasizing liquidity and income generation. Certificate of Deposit holds a significant share at 23.90%, contributing to the fund’s diversification. Treasury Bills are strategically allocated at 16.83%, aligning with the fund’s focus on low-risk holdings.  

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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory