Liquid Mutual Funds to Invest
Liquid Mutual Funds – Quick Overview
Liquid mutual funds invest mainly in short‑term money market instruments and high‑quality debt securities. They are often used for short‑term parking of surplus cash with high liquidity. While liquid funds usually show lower day‑to‑day movement than equity funds, they still carry market and credit risk.
Fund List – Explore Top Liquid Mutual Funds
Use the fund list below to compare liquid mutual funds on historical returns, NAV and risk level. You can sort funds by 1‑year or 3‑year returns. All performance figures are historical and do not guarantee future results.
You can use this list to select liquid mutual funds for short‑term investment, then start SIP or lump‑sum investments directly through your Alice Blue account.
- Number of funds listed
- 74
- Average expense ratio
- 0.26%
- Range of 1Y returns (min–max)
- 0.00% – 6.60%
| ₹2,157.04+0.01% | +6.18% | +6.69% | Low–Mod | |
| ₹1,005.00-0.14% | +6.02% | +6.56% | Low–Mod | |
| ₹452.63-0.01% | +6.43% | +6.89% | Moderate | |
| ₹3,129.94+0.01% | +6.50% | +6.94% | Low–Mod | |
| ₹1,004.06+0.01% | +6.50% | +6.94% | Low–Mod | |
| ₹1,002.22+0.01% | +6.60% | +6.99% | Low–Mod | |
| ₹1,232.57+0.01% | +6.32% | +6.80% | Low–Mod | |
| ₹1,037.86+0.01% | +6.32% | +6.80% | Low–Mod | |
| ₹1,002.99+0.01% | +6.31% | +6.78% | Low–Mod | |
| ₹1,463.52+0.01% | +6.35% | +6.81% | Low–Mod |
1–10 of 74
Why Invest in Liquid Mutual Funds via Alice Blue
- Invest in direct plans of liquid mutual funds through your Alice Blue account.
- View NAV, short‑term returns, expense ratio, exit load and riskometer in one interface before investing.
- Filter funds based on risk level, exit load and short‑term performance.
- Use liquid funds to park surplus cash or as a source scheme for STP into equity funds, subject to scheme rules.
Liquid Mutual Funds – FAQs
01What is a liquid mutual fund?
A liquid mutual fund invests mainly in short‑term money market instruments and high‑quality debt securities. It is commonly used to park surplus cash for short durations with high liquidity. Returns are market‑linked and not guaranteed, and mutual fund investments are subject to market risks.
02How is a liquid fund different from a savings account or FD?
A savings account or fixed deposit is a bank product with fixed interest terms. A liquid fund is a mutual fund scheme that invests in market instruments, where returns can vary and are subject to interest rate and credit risk.
03What is the ideal holding period for a liquid fund?
Liquid funds are generally chosen for short‑term horizons, from a few days to a few months, depending on cash‑flow needs. The right holding period for you depends on when you expect to need the money and how you plan your liquidity.
04Are liquid funds completely risk‑free?
No. Liquid funds are considered relatively lower on the mutual fund risk scale but still carry interest rate and credit risk. The fund’s risk level is displayed through the riskometer, and returns can move up or down over time.
05How is NAV calculated for liquid funds?
NAV for liquid funds is calculated as per regulatory guidelines, based on the market value of the underlying instruments after expenses. Fund houses publish NAVs according to SEBI and industry norms, usually on working days.
06How are gains from liquid funds taxed?
Gains from liquid funds are taxed according to debt fund rules and current income tax laws, often at the investor’s slab rate after recent changes. For detailed impact on your situation, please consult a tax professional.
07Can I use a liquid fund to start an STP into equity funds?
Yes. Many investors use liquid funds as the source scheme for systematic transfer plans (STP) into equity funds, subject to scheme and platform rules. STP helps stagger investments over time but does not remove market risk.
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