Liquid Fund is a kind of debt
fund which invests in money market instrument which has a maturity of 91 days.
This invests in T-Bills, Government securities bond, Bank Fixed Deposits,
commercial papers etc. There is no lock-in period in liquid funds. As we all
know that liquid funds invest in financial instruments which are safe so there
is no such risk in liquid funds. There is no entry load or exit load in liquid
funds.
Features of Liquid Funds
- In all Debt funds, liquid funds provide the most
stable return.
- You can easily convert it in cash within a day.
- The liquid fund is better than a savings bank
account or fixed deposits. It gives more return than those.top-
- This investment instrument has a maturity of 91
days which makes it safer.
- The return of the liquid fund is 6%-8% which is
higher than fixed deposits.
- There is also a tax benefit in liquid funds which
makes it tax-free.
- The NAV value doesn’t change so much.
- Expense Ratio is low among all other mutual funds.
- Liquid funds are best for those investors who
want risk free investment.
|
ICICI Prudential Liquid Fund
Return Since Launch- 7.87%
|
|
1-Year
|
3-Year
|
5-Year
|
10-Year
|
|
7.44
|
7.22
|
7.80
|
7.80
|
|
Reliance Liquid Fund
Return Since Launch- 7.40%
|
| 1-Year |
3-Year
|
5-Year
|
10-Year
|
|
7.50
|
7.25
|
7.82
|
7.77
|
|
Aditya Birla Sun Life Liquid
Fund
Return Since Launch- 7.57%
|
|
1-Year
|
3-Year
|
5-Year
|
10-Year
|
|
7.47
|
7.26
|
7.84
|
7.82
|
|
Axis Liquid Fund
Return Since Launch- 7.96%
|
|
1-Year
|
3-Year
|
5-Year
|
10-Year
|
|
7.50
|
7.26
|
7.82
|
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|
