Best Liquid Mutual Funds in India


Liquid funds are a type of debt funds. They invest in fixed-income securities like treasury bills, certificates of deposit, commercial papers, etc. These mutual funds online are usually used to invest idle money, build an emergency fund, and fulfill short-term goals. Since liquid funds have a maturity of up to 91 days or three days only, they are not suitable for long-term goals. They get their name because they can be redeemed instantly and offer a high level of liquidity.

If you are thinking of investing in liquid mutual funds online, here are some options you can consider:

  1. Quant Liquid Plan: Quant Mutual Funds have been in the news of late for their stellar returns across plans. The Quant Liquid Plan is a good debt fund offered by the fund house with a 5.62% per annum return. The fund’s expense ratio is at 0.29%, and returns since inception have been consistent at 7.47% per annum. The fund has an exit load of 0.007%. Moreover, you can invest a minimum of Rs. 1000 through a SIP (Systematic Investment Plan) and Rs. 5000 in a lump sum investment. The fund has Rs. 455 crore in assets under management (AUM).
  2. Kotak Liquid Direct-Growth: This Kotak Fund is another liquid mutual fund online with a return of 4.78% per annum and 6.91% per annum since inception. The fund has an expense ratio of 0.2% and an exit load of 0.007%. You can invest in a lump sum with a minimum investment of Rs. 5,000. However, the fund does not provide the option to invest through a SIP. Kotak’s liquid fund has Rs.31,096 crore in AUM.
  3. L&T Liquid Plan Direct-Growth: This direct-growth plan allows a minimum SIP of Rs. 1000 and a minimum lump sum investment of Rs. 10,000. The L&T Liquid Plan has offered 4.81% returns per annum and 6.93% per annum since inception. In addition to this, the plan has an expense ratio of 0.14% and an exit load of 0.007%. Moreover, the fund’s size is valued at Rs. 5,304 crore.
  4. SBI Liquid Fund Direct Plan-Growth: The SBI Liquid mutual fund online can be a cost-effective option for those who do not wish to invest a lot of money at once. You can invest a minimum of Rs. 500 through a SIP and Rs. 500 in a lump sum investment. The fund has offered a 4.81% return per annum and 6.9% since inception. The plan has an expense ratio of 0.18% and an exit load of 0.007%. The fund’s size is estimated to be Rs. 71,108 crore.
  5. BNP Paribas Liquid Fund Direct-Growth: Similar to the Kotak Liquid Direct-Growth Plan, this liquid fund also does not allow SIPs. However, the minimum amount for a lump sum investment is fixed at Rs. 5,000. The liquid fund has an expense ratio of 0.13% and an exit load of 0.007%. It has offered 4.9% returns per annum and 6.96% per annum since inception with a fund size of Rs. 925 crore.

To sum it up

If you want to invest in a liquid mutual fund online, you can consider any one of these five funds. The Tata Capital Moneyfy App has many more options as well. You can download the app on Android or iOS and browse through the different mutual fund options to fulfill your goals.