Liquid Mutual Funds
Finding investment opportunities that offer liquidity must be a priority. Liquidity is the quality of purchasing assets or paying debts quickly without significant losses. You don’t have to wait long to recover your principal when selling an investment. Liquid funds are mutual funds that invest in fixed income and money-market instruments with a credit rating of AA or higher. View More
Liquid Mutual Funds List
| Fund Name | Fund Size(Cr.) | 3Y | 5Y | |
|---|---|---|---|---|
Canara Robeco Liquid Fund-UR&Dividend-Direct Growth
|
2,817 | 6.36% | 5.27% | |
Aditya Birla SL Liquid Fund - Direct Growth
|
43,797 | 6.35% | 5.41% | |
Mahindra Manulife Liquid Fund - Direct Growth
|
1,016 | 6.35% | 5.42% | |
Bank of India Liquid Fund - Direct Growth
|
1,531 | 6.34% | 5.34% | |
Edelweiss Liquid Fund - Direct Growth
|
5,046 | 6.33% | 5.42% | |
AXIS Liquid Fund - Direct Growth
|
25,269 | 6.33% | 5.38% | |
Union Liquid Fund - Direct Growth
|
3,516 | 6.33% | 5.40% | |
Baroda BNP Paribas Liquid Fund - Dir Growth
|
9,651 | 6.32% | 5.38% | |
HSBC Liquid Fund - Direct Growth
|
17,059 | 6.32% | 5.33% | |
PGIM India Liquid Fund - Dir Growth
|
374 | 6.32% | 5.39% |
| Fund Name | 1Y | Rating | Fund Size |
|---|---|---|---|
Canara Robeco Liquid Fund-UR&Dividend-Direct Growth
|
7.54% Fund Size - 2,817 |
||
Aditya Birla SL Liquid Fund - Direct Growth
|
7.52% Fund Size - 43,797 |
||
Mahindra Manulife Liquid Fund - Direct Growth
|
7.50% Fund Size - 1,016 |
||
Bank of India Liquid Fund - Direct Growth
|
7.50% Fund Size - 1,531 |
||
Edelweiss Liquid Fund - Direct Growth
|
7.56% Fund Size - 5,046 |
||
AXIS Liquid Fund - Direct Growth
|
7.49% Fund Size - 25,269 |
||
Union Liquid Fund - Direct Growth
|
7.49% Fund Size - 3,516 |
||
Baroda BNP Paribas Liquid Fund - Dir Growth
|
7.45% Fund Size - 9,651 |
||
HSBC Liquid Fund - Direct Growth
|
7.48% Fund Size - 17,059 |
||
PGIM India Liquid Fund - Dir Growth
|
7.48% Fund Size - 374 |
What are Liquid Mutual Funds?
How do Liquid Mutual Funds Work?
Who Should Invest in Liquid Mutual Funds?
Features of Liquid Mutual Funds
Factors to consider before investing in Liquid Funds
Taxability of Liquid Funds
Risks involved with Liquid Funds
Advantages of Liquid Funds
Popular Liquid Mutual Funds
- Canara Robeco Liquid Fund-UR&Dividend-Direct Growth
- ₹ 1000
- ₹ 2,8170
- 6.36%
- Min SIP Investment Amt
- ₹ ₹ 1000
- AUM (Cr.)
- ₹ 2,817
- 3Y Return
- 6.36%
- Min SIP Investment Amt
- ₹ ₹ 1000
- AUM (Cr.)
- ₹ 2,817
- 3Y Return
- 6.36%
- Aditya Birla SL Liquid Fund - Direct Growth
- ₹ 100
- ₹ 43,7970
- 6.35%
- Min SIP Investment Amt
- ₹ ₹ 100
- AUM (Cr.)
- ₹ 43,797
- 3Y Return
- 6.35%
- Min SIP Investment Amt
- ₹ ₹ 100
- AUM (Cr.)
- ₹ 43,797
- 3Y Return
- 6.35%
- Mahindra Manulife Liquid Fund - Direct Growth
- -
- ₹ 1,0160
- 6.35%
- Min SIP Investment Amt
- ₹ -
- AUM (Cr.)
- ₹ 1,016
- 3Y Return
- 6.35%
- Min SIP Investment Amt
- ₹ -
- AUM (Cr.)
- ₹ 1,016
- 3Y Return
- 6.35%
- Bank of India Liquid Fund - Direct Growth
- -
- ₹ 1,5310
- 6.34%
- Min SIP Investment Amt
- ₹ -
- AUM (Cr.)
- ₹ 1,531
- 3Y Return
- 6.34%
- Min SIP Investment Amt
- ₹ -
- AUM (Cr.)
- ₹ 1,531
- 3Y Return
- 6.34%
- Edelweiss Liquid Fund - Direct Growth
- ₹ 100
- ₹ 5,0460
- 6.33%
- Min SIP Investment Amt
- ₹ ₹ 100
- AUM (Cr.)
- ₹ 5,046
- 3Y Return
- 6.33%
- Min SIP Investment Amt
- ₹ ₹ 100
- AUM (Cr.)
- ₹ 5,046
- 3Y Return
- 6.33%
- AXIS Liquid Fund - Direct Growth
- ₹ 1000
- ₹ 25,2690
- 6.33%
- Min SIP Investment Amt
- ₹ ₹ 1000
- AUM (Cr.)
- ₹ 25,269
- 3Y Return
- 6.33%
- Min SIP Investment Amt
- ₹ ₹ 1000
- AUM (Cr.)
- ₹ 25,269
- 3Y Return
- 6.33%
- Union Liquid Fund - Direct Growth
- ₹ 500
- ₹ 3,5160
- 6.33%
- Min SIP Investment Amt
- ₹ ₹ 500
- AUM (Cr.)
- ₹ 3,516
- 3Y Return
- 6.33%
- Min SIP Investment Amt
- ₹ ₹ 500
- AUM (Cr.)
- ₹ 3,516
- 3Y Return
- 6.33%
- Baroda BNP Paribas Liquid Fund - Dir Growth
- ₹ 500
- ₹ 9,6510
- 6.32%
- Min SIP Investment Amt
- ₹ ₹ 500
- AUM (Cr.)
- ₹ 9,651
- 3Y Return
- 6.32%
- Min SIP Investment Amt
- ₹ ₹ 500
- AUM (Cr.)
- ₹ 9,651
- 3Y Return
- 6.32%
- HSBC Liquid Fund - Direct Growth
- ₹ 500
- ₹ 17,0590
- 6.32%
- Min SIP Investment Amt
- ₹ ₹ 500
- AUM (Cr.)
- ₹ 17,059
- 3Y Return
- 6.32%
- Min SIP Investment Amt
- ₹ ₹ 500
- AUM (Cr.)
- ₹ 17,059
- 3Y Return
- 6.32%
- PGIM India Liquid Fund - Dir Growth
- ₹ 1000
- ₹ 3740
- 6.32%
- Min SIP Investment Amt
- ₹ ₹ 1000
- AUM (Cr.)
- ₹ 374
- 3Y Return
- 6.32%
- Min SIP Investment Amt
- ₹ ₹ 1000
- AUM (Cr.)
- ₹ 374
- 3Y Return
- 6.32%
FAQs
Liquid funds are most suitable for investors with a short-time horizon, who may need liquidity shortly, or have come into some liquidity, which they don’t plan on using for the next few weeks.
Such funds offer an opportunity to keep excess funds or reserves safe while putting them to work to earn moderate rates of returns.
Liquid funds, as a rule of thumb, offer lower market risks when compared to other classes of mutual funds; however, they mostly remain on the same levels when it comes to risks and rewards as against fixed deposits.
While the marginally higher rate of returns, lower minimum investment values, and premature withdrawal penalties have made this an attractive alternative, investors in such funds assume higher risks when compared to fixed deposits at banks.
However, with most liquid funds investing in high-quality credit assets, diverse allocations, and short maturity dates, the risks are still relatively muted for average retail investors.
It had only happened during exceptional circumstances, such as during the 2008 financial crisis, when the Federal Reserve announced that interest rates would go up, resulting in global bond markets going awry overnight.
Given the extensive regulations and standards to which these funds are held, and the superior quality of credit instruments that they invest in, the chances of suffering a loss on your initial capital remain relatively rare.
Install the ET app or visit their website first. Visit the mutual fund’s section. Next, choose and select the Liquid fund you want to invest in. Click on the ‘invest’ option and select the amount you want to invest. After that, provide your KYC details and complete the process.
The most significant appeal of liquid funds is the instant withdrawal facility, allowing investors to take out their funds within just a day after putting them in while earning the interest, however small, for the day’s investment.
Funds that offer this facility allow investors to withdraw up to ₹50,000 almost instantly, with withdrawals processed within 24 hours of placing the request, and beyond this amount, up to 90% of the total investment can be withdrawn at any given time.
Liquid mutual funds deliver higher returns as compared to savings bank accounts. So, if you have some extra funds, you can consider putting them in liquid funds to earn better returns. This type of scheme is also ideal for contingency funds. They primarily focus on capital preservation while generating consistent returns.
Investors can withdraw their units in liquid funds whenever they want. Well-performing liquid funds are therefore perfect for investors willing to save over a short period. Moreover, as the funds primarily invest in high-quality instruments, those with a low-risk appetite can also consider liquid funds for their financial goals.
- Aggressive Hybrid
- Arbitrage
- Balanced Hybrid
- Banking and PSU
- Childrens
- Conservative Hybrid
- Contra
- Corporate Bond
- Credit Risk
- Dividend Yield
- Dynamic Asset
- Dynamic Bond
- ELSS
- Equity Savings
- Fixed Maturity Plans
- Flexi Cap
- Floater
- Focused
- FoFs Domestic
- FoFs Overseas
- Gilt Fund with 10 year
- Gilt
- Index
- Large & Mid Cap
- Large Cap
- Liquid
- Long Duration
- Low Duration
- Medium Duration
- Medium to Long Duration
- Mid Cap
- Money Market
- Multi Asset Allocation
- Multi Cap
- Overnight
- Passive ELSS
- Retirement
- Sectoral / Thematic
- Short Duration
- Small Cap
- Ultra Short Duration
- Value