Is Your Money Lying Idle in a Bank? Invest in These 5 Liquid Funds

24 August 2022
4 min read
Is Your Money Lying Idle in a Bank? Invest in These 5 Liquid Funds
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Liquid funds are mutual funds that invest in short-term debt and money market instruments. They invest in high-quality bonds and government securities, which they hold until they mature or are redeemed.

Liquid funds, as the name suggests, are those funds in which the investments in a particular financial instrument can be readily withdrawn to get immediate cash. They are a type of Mutual Fund that invests in Short-Term Debt Securities such as Treasury Bills, Commercial Paper, Certificates of Deposit (CDs), and Bankers' Acceptances.

They are typically short-term. Liquidity is the ability to turn an asset into cash quickly, and liquid funds usually have a few months before they mature, so they can be used to meet short-term needs and have liquidity in their portfolio.

Top 5 Liquid Funds To Invest

Investment in liquid funds is a good option for those who want to make their money grow faster. These funds are also suitable for investors who haven't started investing yet.

Liquid funds are also known as mutual funds since they are managed by private equity firms or investment banks that work with these funds. Here are the top liquid 5 funds with excellent returns that you can invest in-

S.No.

Fund Name

1.

Aditya Birla Sun Life Money Manager Fund - Direct Plan-Growth

2.

Quant Liquid Plan-Growth

3.

ICICI Prudential Money Market Fund - Direct Plan-Growth

4.

UTI - Liquid Cash Plan- Discontinued - Regular Plan-Growth

5.

Taurus Liquid Fund Growth

Performance Overview of the Best 5 Liquid Funds

1) Aditya Birla Sun Life Money Manager Fund - Direct Plan-Growth

Aditya Birla Sun Life Money Manager Fund Direct-Growth is a Debt Mutual Fund Scheme launched by Aditya Birla Sun Life Mutual Fund. This scheme was made available to investors on 23 Dec 1994. Kaustubh Gupta, Mohit Sharma is the Current Fund Manager of Aditya Birla Sun Life Money Manager Fund Direct-Growth fund.

2) Quant Liquid Plan-Growth

Quantum Liquid Fund Direct-Growth is a Debt Mutual Fund Scheme launched by Quantum Mutual Fund. This scheme was made available to investors on 19 Sep 2005. Mayur Chauhan is the Current Fund Manager of Quantum Liquid Fund Direct-Growth fund.

The scheme aims to provide optimal returns with moderate levels of risk and high liquidity through prudent investments in the money market and debt instruments. 

3) ICICI Prudential Money Market Fund - Direct Plan-Growth

ICICI Prudential Money Market Direct-Growth is a Debt Mutual Fund Scheme launched by ICICI Prudential Mutual Fund. This scheme was made available to investors on 12 Oct 1993. Rahul Goswami, Nikhil Kabra is the Current Fund Manager of ICICI Prudential Money Market Direct-Growth fund.

The scheme seeks to provide reasonable returns commensurate with low risk while providing a high level of liquidity through investments made primarily in the money market up to 100% and debt securities up to 40%. The aim is to optimize returns while providing liquidity. 

4) UTI - Liquid Cash Plan- Discontinued - Regular Plan-Growth

UTI Liquid Cash Direct-Growth is a Debt Mutual Fund Scheme launched by UTI Mutual Fund. This scheme was made available to investors on 14 Nov 2002. Amandeep Chopra, Amit Sharma is the Current Fund Manager of UTI Liquid Cash Direct-Growth fund.

The scheme seeks to generate steady and reasonable income with low risk and a high level of liquidity from a portfolio of debt & money market instruments. 

5) Taurus Liquid Fund Growth

Taurus Liquid Fund Super Institutional Direct-Growth is a Debt Mutual Fund Scheme launched by Taurus Mutual Fund. This scheme was made available to investors on 20 Aug 1993. Dheeraj Singh is the Current Fund Manager of Taurus Liquid Fund Super Institutional Direct-Growth fund.

The scheme aims to generate steady and reasonable income with low risk and a high level of liquidity from a portfolio of money market securities and high-quality debt.

Conclusion

India has a vast pool of liquid funds. These funds can be converted into cash quickly, without the need for permission. These funds have been around for over five decades and have been used by banks and financial institutions to meet their liquidity requirements.

Liquid funds are the best way to invest in the stock market without worrying about losing money. Liquid funds provide short-term liquidity and long-term growth.

In the last few years, the Indian government has encouraged to invest in liquid funds. Investing in liquid funds will help fund managers comply with new regulations regarding risk management and capital adequacy. Furthermore, it will create a more efficient market for investors who want to invest in liquid funds.

To read the RA disclaimer, please click here
Research Analyst - Bavadharini KS

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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