Top 5 Liquid Funds:
Liquid funds are “a type of mutual funds that invest in securities with a residual maturity of up to 91 days. Assets invested are not tied up for a long time as liquid funds do not have a lock-in period.” Liquid funds do not guarantee fixed returns as the performance of the liquid fund is completely dependent on the behavior of the market. The liquid funds are a little less risky when compared to the ultra-short-term funds owing to their lower maturity period and are definitely better when it comes to liquidity. The top 5 liquid funds help to invest your money in short term market instruments that include government securities, call money, treasury bills and others that hold the least risk.
Here is a list of the top 5 liquid funds:
- Franklin India Liquid Fund: The fund debuted in September 2005 and has done extremely well in the market giving excellent returns to its investors.
- Axis Liquid Fund: The fund was launched in October 2009 and has an exceptional record. The liquid fund has a strong portfolio and includes all highly credit rated debt instruments.
- Aditya Birla Sun Life Liquid Fund: The fund made its debut in March 2004 and is beneficial for investors wanting long term investment perspective of at least 5 years or more.
- Reliance Liquid Fund: Launched in December 2003, it is the oldest liquid fund. The fund has done extremely well during the last 5 year period.
- ICICI Prudential Liquid Fund: The fund was launched in 2005 and is excellent if you are thinking of long term investment.
|Fund Name||1-Year Return||3-Year Return||5-Year Return|
|Franklin India Liquid Fund||7.53%||7.7%||7.78%|
|Axis Liquid Fund||6.84%||6.52%||7.03%|
|Aditya Birla Sun Life Liquid Fund||7.53%||7.18%||7.7%|
|Reliance Liquid Fund||7.49%||7.17%||7.66%|
|ICICI Prudential Liquid Fund||7.33%||7.04%||7.56%|
|L&T Liquid Fund Direct Growth||7.08%||7.04%||7.53%|
|UTI Liquid Fund Direct Growth||7.2%||7.07%||7.53%|
|BOI AXA Liquid Fund Direct Growth||7.31%||7.13%||7.64%|
|Tata Liquid Fund Direct Growth||7.18%||7.07%||7.55%|
So if you have a surplus amount of money, then instead of depositing it in the bank, it is wisest to invest in the top 5 liquid funds as the returns are definitely better.