Which liquid mutual fund is best?
Table of Contents
- 1 Which liquid mutual fund is best?
- 2 Is liquid fund and mutual fund same?
- 3 How many types of liquid funds are there?
- 4 Can I lose money in liquid funds?
- 5 Can liquid funds give negative returns?
- 6 How do I withdraw money from liquid fund?
- 7 How safe is liquid fund?
- 8 Why liquid funds are falling?
- 9 What is a liquid fund?
- 10 What is the lock-in period on investment in liquid funds?
Which liquid mutual fund is best?
The table below shows the top-performing liquid funds based on the past 3 and 5-year returns:
| Mutual fund | 5 Yr. Returns | 3 Yr. Returns |
|---|---|---|
| ICICI Prudential Money Market Fund – Cash Option | 6.45\% | 6.03\% |
| Kotak Money Market Scheme – Direct Plan – Growth | 6.45\% | 5.97\% |
| Kotak Money Market Scheme | 6.38\% | 5.89\% |
| Quant Liquid Plan Growth | 6.04\% | 5.5\% |
Is liquid fund and mutual fund same?
Liquid funds are used by many investors to create an emergency fund. They offer reasonable returns at lower risks and are as liquid as savings account deposits….Investment Plan.
| Asset Management Company | ||
|---|---|---|
| HDFC Mutual Fund | LIC Mutual Fund | Taurus Mutual Fund |
| SBI Mutual Fund | JM Financial Mutual Fund | Edelweiss Mutual Fund |
How many types of liquid funds are there?
Top 5 Liquid Funds in India
| Fund name | 1-year return |
|---|---|
| Axis Liquid Fund Growth | 7.47\% |
| UTI Liquid Fund – Cash Plan Growth | 7.47\% |
| ICICI Prudential Liquid Fund Growth | 7.40\% |
| L Liquid Fund Growth | 7.37\% |
Which liquid fund is best 2021?
Top 10 Liquid Funds In India For 2021
| Fund Name | 3 Year Returns | AUM (in Cr) |
|---|---|---|
| SBI Liquid Fund | 6.08\% | ₹54,433 |
| HDFC Liquid Fund | 6.04\% | ₹65,240 |
| Invesco India Liquid Fund | 6.07\% | ₹6,601 |
| Axis Liquid Fund | 6.21\% | ₹27,868 |
Can I withdraw money from liquid fund?
According to Sebi guidelines, investors are allowed to withdraw up to ₹50,000 or 90\% of the investment amount, whichever is lower, per day per scheme under this facility. To make a withdrawal, you will need to put in a redemption request.
Can I lose money in liquid funds?
Liquid Funds are one of the safest mutual funds. That’s because they lend to good companies for an extremely short duration, and that reduces risk. The risk of losing money is almost zero if you stay invested for some amount of time.
Can liquid funds give negative returns?
The liquid funds can go down in value. However, the likelihood of them going down in value is not that often, owing to the stringent regulations. But, if at all that happens, the magnitude of that fall could be very nominal and can recover in seven-eight days.
How do I withdraw money from liquid fund?
To withdraw money from PhonePe Liquid Fund, open the PhonePe app after investing in it. Then click on the below ‘My Money’ option. After that, you can see an option, Liquid Fund. Now if you already invested in a liquid fund simply click on withdraw option.
Are liquid funds tax free?
The dividends paid out by the debt fund or liquid fund are entirely tax free in the hands of the fund investor. In case of debt funds and liquid funds this rate is 28.84\%, which is a small advantage compared to the peak rate of tax that is payable on pure debt instruments like FDs.
Can I redeem liquid fund anytime?
Many other fund houses offer this facility already. Under this facility, investors can withdraw up to ₹50,000 per day almost instantly on any given day throughout the year.
How safe is liquid fund?
Although liquid funds are not entirely risk-free, however, they are low risk-low returns instruments. As they invest predominantly in debt instruments, they are subject to interest rate risk and credit risk. Liquid funds ensure that your money is invested only in superior creditworthy instruments.
Why liquid funds are falling?
In some cases, the yield has moved below RBI’s Repo Rate of 4\%. The cut in RBI policy rates and abundant liquidity in the financial system has led to a sharp fall in short term interest rates and essentially lower growth rate for liquid funds.
What is a liquid fund?
Liquid fund refers to the Mutual Fund scheme that invests its accumulated fund money in fixed income securities having a maturity period of less than 91 days. Liquid funds are part of debt funds and are considered to be one of the safe investment avenues.
Are liquidliquid funds (MMF) safe?
Liquid Funds generally have no entry and exit loads. Money market mutual funds (MMF) invest in short-term debt instruments, cash, and cash equivalents that are rated high quality. It is for this reason that money market mutual funds are considered safe or investment with minimal to low risk.
What is the difference between liquid and bank savings accounts?
In contrast, liquid funds offer flexible holding periods with easy exit options. Money in bank savings accounts can be withdrawn at any time, but they offer around 3\%‐4\% interest only, which is lower than the 5\% plus usually earned by a liquid fund. The purpose of liquid funds is to provide liquidity and safety while generating a low return.
What is the lock-in period on investment in liquid funds?
There is no lock-in period on investment in liquid funds. A plus point to high liquidity that the fund offers is that there is no applicable exit load when you withdraw the invested capital after 7 days of investment. The investment portfolio of liquid funds consists of short term money market instruments.