Invest in the Best Liquid Funds to Earn More

For most of the people keeping cash in the bank is a traditional way of saving money. Banks not offering more than 4 to 5 % of interest on the deposits, make this traditional way of saving money less fascinating. Now, what captures the attention is the liquid funds.

Liquid mutual funds invest in securities having a maturity period of just 91 days. Unlike Equity Mutual Funds, Liquid funds are completely different. These funds prove to be the best investment choice for the investors looking for short-term gains. These funds invest in short term money market instruments such as bonds, government securities, treasury bills and commercial papers.

Key Features of Liquid Funds

  • They provide the flexibility of anytime withdrawal and are found to be the most secured funds. These funds are free from exit load and penalties.
  • These funds suit well for investors looking for short-term goals. Though the returns are not fixed as compared to Fixed Deposit but are much higher than it.
  • They are less risky, especially when compared to equity funds. For diversification, experts advise to include these funds in the portfolio in order to spread the risk and make them more liquid.
  • They mainly invests in short-term securities, including a certificate of deposits, government bonds, money market instruments etc.

Top Liquid Mutual Funds to Invest This Time

  1. Kotak Liquid Fund
    It is an open-ended Debt fund from Kotak Mutual Fund. The main investment objective of Kotak Liquid fund is to give high levels of liquidity. Along with this, it focuses to provide high returns by investing in money market instruments in order to spread the risks. Mr. Deepak Agarwal is the Fund Manager of this fund. It holds a benchmark of Crisil liquid.
  2. Canara Robeco Liquid Fund
    It is again an open- ended scheme. The main aim of this fund is capital appreciation in the short term period. It invests in both money market securities and debt securities. 
    Ms. Suman Prasad is the fund manager of this fund.
  3. Sundaram Select Debt Short Term Asset Plan
    The main objective of this fund is to invest in fixed income securities which can make sure regular income to the investors as it ensures dividends and reinvestments. This fund invests in corporate bonds, Money market instruments etc. For investors looking for the high credit quality can opt for this fund. It holds the benchmark of CRISIL Short Term Bond Fund Index. Dwijendra Srivastava, Sandeep Agarwal are the fund managers of this fund.
  4. Reliance Liquidity Fund
    The objective of this fund is to create returns for investors with moderate risk levels. This fund is highly liquid and predominantly invests in debt and money market instruments. This is an open-ended liquid scheme suitable for investors looking to grow their corpus in the short term. Mr.Vivek Sharma & Mr. Amit Tripathi are the fund managers of this fund. There is no entry and exit load on Reliance Liquidity fund.

At the end, we can conclude that the liquid funds are most appropriate for investors looking for short-term wealth creation. These funds hold a high level of safety and security.

The article tells about the liquid mutual funds, their investment objectives and also the top liquid funds.