Greeting To Our Readers!
Liquid Mutual Funds, a type of debt mutual fund with very low maturity, and especially recommended to investors who wish to park their idle cash for a short duration without the risk of Capital Loss.
These funds having low maturity, are not associated with any lock-in period and this investor can easily redeem their investments anytime they want. The best part is investors receive their money the very next day of their redemption!
Liquid funds are also taken as the best option for an individual to create their emergency funds or corpus!
HOW DOES LIQUID FUND WORKS?
Well, let us understand the working of liquid funds through the following points:
- Liquid funds invest in debt and money market instruments, that have a very short maturity period, of only up to three months that is 91 days. As these funds have very short maturity, their investors generally hold these funds till maturity, and this saves liquid funds from the effect of risk that comes from the interest rate volatility.
- Being a short-term investment, a liquid fund mostly invests in instruments with a high credit rating. Net Asset Value (NAV) of the liquid fund, mostly changes with the change in the interest income that the fund receives.
- When the investor redeems his funds, the return is credited to their respective bank account the very next day.
Well, if you are looking for a fund to park your money for a term or the short term without the risk of capital loss then end your research at Liquid funds and plan your investment in the same.
Below, we are discussing some of the best Liquid Mutual Funds where one can plan their investments, do have a look!
Aditya Birla Sun Life Liquid Fund
A liquid fund category debt mutual fund, run and managed by Aditya Birla Sun Life Mutual Fund House. The fund has 91.78% investment in Debt, out of which 24.98% in Government securities, 63.17% in funds invested in very low-risk securities.
The fund size (Asset Under Management) of the scheme is around Rs 30,806 crores and it charges a total expense ratio of around 0.21%. The fund charges a very small amount as exit load on different redemption conditions like:
- The fund charges an exit load equal to 0.006999999999999999% of sell value if the fund is sold before 1 day.
- The fund charges an exit load equal to 0.0065% if the fund is sold before 2 days.
- The fund charges an exit load equal to 0.006% if the fund is sold before 3 days.
- The fund charges an exit load equal to 0.0055000000000000005% if the fund is sold before 4 days.
- The fund charges an exit load equal to 0.005% if the fund is sold before 5 days.
- The fund charges an exit load equal to 0.0045000000000000005% if the fund is sold before 6 days.
The prime objective of the fund is to provide reasonable returns at a high level of safety, and liquidity through judicious investments in high-quality debt and money market instruments.
The fund is best recommended to investors who are looking to invest for very short-term or looking for an alternate option to a savings bank account or fixed deposits.
Axis Liquid Fund Growth
A liquid fund category debt mutual fund, run and managed by Axis Mutual Fund House. The fund has 99.03% investment in Debt, out of which 43.5% in Government securities, 53.48% in funds invested in very low-risk securities.
The fund size (Asset Under Management) of the scheme is around Rs 24,176 crores and it charges a total expense ratio of around 0.25%. The fund charges a very small amount as exit load on different redemption conditions like:
- The fund charges an exit load equal to 0.006999999999999999% of sell value if the fund is sold before 1 day.
- The fund charges an exit load equal to 0.0065% if the fund is sold before 2 days.
- The fund charges an exit load equal to 0.006% if the fund is sold before 3 days.
- The fund charges an exit load equal to 0.0055000000000000005% if the fund is sold before 4 days.
- The fund charges an exit load equal to 0.005% if the fund is sold before 5 days.
- The fund charges an exit load equal to 0.0045000000000000005% if the fund is sold before 6 days.
The prime objective of the fund is to provide a high level of liquidity with reasonable returns and low risk through a portfolio of money market and debt securities. The fund is best recommended to investors who are looking to invest for very short-term or looking for an alternate option to a savings bank account or fixed deposits.
ICICI Prudential Liquid Fund Growth
A liquid fund category debt mutual fund, run and managed by ICICI Prudential Mutual Fund House. The fund has 93.18% investment in Debt, out of which 43.92% in Government securities, 49.24% in funds invested in very low-risk securities.
The fund size (Asset Under Management) of the scheme is around Rs 36920 crores and it charges a total expense ratio of around 0.32%. The fund charges a very small amount as exit load on different redemption conditions like:
- The fund charges an exit load equal to 0.006999999999999999% of sell value if the fund is sold before 1 day.
- The fund charges an exit load equal to 0.0065% if the fund is sold before 2 days.
- The fund charges an exit load equal to 0.006% if the fund is sold before 3 days.
- The fund charges an exit load equal to 0.0055000000000000005% if the fund is sold before 4 days.
- The fund charges an exit load equal to 0.005% if the fund is sold before 5 days.
- The fund charges an exit load equal to 0.0045000000000000005% if the fund is sold before 6 days.
The prime objective of the fund is to provide reasonable returns commensurate with low risk and providing a high level of liquidity, through investments made primarily in the money market and debt instruments.
The fund is best recommended to investors who are looking to invest for very short-term or looking for an alternate option to a savings bank account or fixed deposits.
Nippon India Liquid Fund
A liquid fund category debt mutual fund, run and managed by Nippon India Mutual Fund House. The fund has 94.1% investment in Debt of which 36.34% is in Government securities, 57.76% in funds invested in very low-risk securities.
The fund size (Asset Under Management) of the scheme is around Rs 22,557 crores and it charges a total expense ratio of around 0.32%. The fund charges a very small amount as exit load on different redemption conditions like:
- The fund charges an exit load equal to 0.006999999999999999% of sell value if the fund is sold before 1 day.
- The fund charges an exit load equal to 0.0065% if the fund is sold before 2 days.
- The fund charges an exit load equal to 0.006% if the fund is sold before 3 days.
- The fund charges an exit load equal to 0.0055000000000000005% if the fund is sold before 4 days.
- The fund charges an exit load equal to 0.005% if the fund is sold before 5 days.
- The fund charges an exit load equal to 0.0045000000000000005% if the fund is sold before 6 days.
The prime objective of the fund is To generate optimal returns consistent with moderate levels of risk and high liquidity.
The fund is best recommended to investors who are looking to invest for very short-term or looking for an alternate option to a savings bank account or fixed deposits.
To get more details about the fund you can refer to the fund fact sheet or you can get in touch with us. Call us on- 0612-6604453 or mail us at [email protected]
For any kind of query, you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.
Happy Investing!
(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).