Liquid Funds

Liquid Funds are a smarter and beneficial alternative to the regular bank savings account. These are the mutual funds that invest the pooled corpus in the fixed income securities which get matured within 91 days. These low-risk securities provide better gains than bank deposits in the short tenure. Best Liquid Mutual Funds have enhanced the savings strategy of millions. It offers high liquidity and the investments can be withdrawn anytime without any exit load. The risk factor is negligible and the gains are better than any other conventional savings avenue. Learn more about the top 10 best Liquid Funds scheme, performance, NAV, Returns and Liquid Mutual Funds meaning.

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Top 10 Mutual Fund Schemes To Invest

The funds listed below are among the top ranking mutual funds based on the ratings given by the top rating agencies which takes hundreds of criteria into account before rating the scheme. This list allows you to see top rated funds at a glance so that you can make wiser decisions about your investments. This recommendation helps you list down top ranked mutual funds in India before making investments via SIP or Lumpsum. It is reviewed & updated quarterly to provide the best to our investors.

Fund Name Latest NAV Rating Return (%) Double Money In 1 Lac Grew To (₹)
Franklin India Liquid Fund - Super Institutional Plan (G)
3021.89 6.6 10Y 5M 1.21 L
Nippon India Liquid Fund (G)
4910.15 6.5 10Y 6M 1.21 L
Aditya Birla Sun Life Money Manager Fund (G)
278.46 7.78 9Y 5M 1.25 L
IDBI Liquid Fund (G)
2155.09 6.54 10Y 6M 1.21 L
Axis Liquid Fund (G)
2232.44 6.49 10Y 6M 1.21 L
Aditya Birla Sun Life Liquid Fund (G)
323.53 6.5 10Y 6M 1.21 L
PGIM India Insta Cash Fund - Growth
261.62 6.49 10Y 6M 1.21 L
Mahindra Manulife Liquid Fund (G)
1305.22 6.48 11Y 1M 1.21 L
Tata Liquid Fund (G)
3168.5 6.47 10Y 7M 1.21 L
Baroda Pioneer Liquid Fund (G)
2308.67 6.43 10Y 6M 1.21 L
Baroda Pioneer Midcap Fund (G)
9.66 2.12 12Y 5M 1.07 L


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  • If in case you apply for redemption before 3 P.M., then you will receive the amount generated by your mutual fund in the next morning. Moreover, according to the SEBI guidelines, it is mandatory for the AMC to provide quick redemption of up to Rs. 50,000.

  • Being a low risky fund, liquid funds are suitable for the investors who are not willing to take much risk in the mutual fund market but at the same time want to generate stable returns.

  • The STCG tax is applied on liquid funds if the investor sell the units before 3 years. The tax will be added to the income of investor and taxed according to the income tax slab. After 3 years, the LTCG tax imposed on the capital gains is 20%.

  • Liquid Mutual Funds is a category of mutual fund that invests in market instruments having short-term maturity period. These funds diversify the assets in the instruments having maturity of up to 91 days.

  • Liquid funds provides better inflation-adjusted returns than the savings account. The interest returns provided by the savings account is around 4% whereas the liquid mutual funds are capable of providing 7% to 9% returns. Moreover, the liquid fund provides similar liquidity as the savings account.

  • The returns are not guaranteed like the Fixed Deposits. But, the average returns lies in the range of 7% to 9%. For this, you should always analyze the past performance of the fund which will give you some idea about the previous track record of the fund.

  • Liquid funds are the sub-category of debt instruments having no exit load. Moreover, the maturity period of instruments (up to 91 days) in case of liquid mutual funds also differentiates them from other categories of debt funds.

  • Liquid Mutual Funds are low risk funds as they park the money in the debt and money market instruments.

Liquid Funds - Best Solution for Short-Term Investments

Are you still using the old mobile phone which has a keypad, for instance Nokia-1600? Of course not! Then, why are you plotting your hard-earned money in savings bank account? Instead of parking your cash into savings bank account, why not invest it where it can reap higher returns? Best Liquid Funds are such an option for investment through which you can earn healthy returns on your investments. They offer higher returns than that of what you earn from your savings account. Thus, it should be a daily dose to maintain your financial fitness.

What are Liquid Funds?

The top Liquid Funds listed with us help you to invest in very short-term debt instruments and money market securities. They give you the access to invest in the treasury bills, call money, and certificates of deposits. You can invest in liquid mutual funds even for a day. So, grow your capital with us as the liquid funds returns lie between 6-7% per annum. Don’t adjust with low returns of savings account, prefer investing now in the best liquid mutual funds in India.

Why Invest in Liquid Mutual Funds?

Liquid Mutual Funds in India are the most ideal parking ground for your surplus money that you have received due to any influx of cash, maturity of investments, or other inflows. Moreover, investment in this category can also help you as an emergency fund in case of any uncertainty. Although it is true that top liquid Funds provide higher returns than savings bank deposits, but they cannot be full-fledged substitute to bank deposits. However, historically they have provided 3-4% higher returns than that of the savings bank deposits.

Top 5 Liquid Funds to Invest in India

Here is the list of the best liquid mutual funds in India -

  • Aditya Birla Sun Life Liquid Fund
  • ICICI Prudential Liquid Fund
  • Reliance Liquid Fund
  • UTI Liquid Fund
  • Axis Liquid Fund
Liquid Mutual Funds Are Prefered for The Following Reasons:

There are numerous reasons for preferring the liquid fund when investing for a short period. They are:

  • Low-risk factor: Being a short-term investing option, Liquid mutual funds is quite popular because of its secure method of investment. Although, having a low liquid funds returns policy they are preferred most. There are very low or negligible fluctuations in the rate of liquid fund returns.
  • No entry and exit load: Unlike other investing options available in the indsustry, best liquid funds in india don’t have entry or exit load. This means you can enter the mutual fund at any time and exit at any time. Nor you have to pay an extra cost for purchasing the commercial papers and neither there is any deduction in your amount if you withdraw the investment before maturity. You start getting the benefits of the best liquid mutual funds in mutual funds as soon as you commence your investment.
  • Easy redemption: Redeeming a liquid funds is the easiest task. No complications are involved in getting back your money. The withdrawal request of any liquid funds is processed within 24 hours (including the time to release the cash). The only restriction that is involved here is the time limit, which says, you have to place a request for redemption before 2 p.m. So, whenever you need your money, file an application to withdraw your fund before 2 p.m. on any business day and by the next day, you will receive your money. Isn’t it easy?
  • Different plans: In liquid fund, you have a choice to put your money in various SIP according to your need. For example, daily plan, growth plan, monthly dividend plan, etc. It is simply based on the preference of the client to select any of the above options available in top liquid funds India.
How to Invest in Liquid Funds Online?

Investing in mutual funds has now become simplified with the various online solutions. We provide the best services to the investors to start their online liquid mutual funds investment plan in a hassle-free manner. One simply needs to submit the required documents online and complete the payment process for investing in the top liquid funds India.

Liquid Funds Vs. FD
  • The liquid fund offer superior liquidity as compared to the fixed deposits in the bank. If you withdraw your money in FDs before maturity, there are penal provisions as well.
  • The liquid funds returns in the past few years have been far impressive ranging from 7 to 8 per cent on an annualised basis. Moreover, with the growing mutual fund industry it is expected that the rise in the returns would be impeccable.
  • The instruments in which the best Liquid Mutual Funds scheme invest have the maturity of maximum 91 days, and thus they are neither prone to the interest rate risk nor the market fluctuations. Accordingly, the fund provides a high degree of safety to the investor's money.

Our site brings to you a platter full of various companies offering variegated best liquid fund schemes. A few top trending best liquid mutual funds india are BOI AXA Liquid Funds - Institutional Plan (WD), ICICI Prudential Money Market Fund offered by ICICI Prudential Mutual Fund, Franklin India Cash Management Account (D), UTI Liquid Funds - Cash Plan (MD) offered by UTI Mutual Fund, etc. You can also choose from various other best mutual funds and calculate the return for the same using sip calculator. Moreover with our site you can add best liquid mutual funds in your portfolio in order to prepare yourself to attain your futuristic goals.

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