Liquid mutual funds meaning is debt funds that engage in short-term investment products such as bank fixed deposits, commercial papers, treasury bills, and other short-term debt securities. Liquid mutual funds meaning are the funds in which NAV (Net Asset Value) is computed for 365 days, whereas another debt mutual funds’ NAV is measured just for business days. No lock-in periods for liquid funds are present. On business days, liquid money withdrawals are executed within 24 hours. As a result, for any transactions received before the cut-off time, where the cash is also generated before the cut-off time, the pieces are assigned according to the previous day’s NAV.
Most debt fund categories have an interesting risk, although liquid funds have the lowest. This is due to the fact that they generally invest in short-term fixed-income assets. Another significant advantage of liquid funds is that they have no entrance or exit penalty. To learn more about the liquid mutual funds meaning, you can click the link given below: https://www.glideinvest.com/knowledge-center/liquid-mutual-funds-meaning-returns-benefits
Top 5 Liquid Funds In India In 2022
Let’s take a closer look at each of these fine liquid mutual funds in India in 2022.
1. Nippon India Liquid Fund
According to recent data, the Nippon India Liquid Fund’s current NAV for the Growth alternative of its Regular plan is Rs 5137.2888. It is suitable for individuals searching for a short-term investment option other than bank accounts or deposits.
It has lagging returns of 3.16 percent (1 year), 4.84 percent (3 years), 5.7 percent (5 years), and 6.97 percent across various time periods (since launch). For the same time period, category returns are 3.14 percent (1 year), 4.64 percent (3 years), and 5.49 percent (5yr).
2. SBI Liquid Fund
The SBI Liquid Fund’s present NAV for the Growth feature is Rs 3293.5928. It has leading returns of 3.21 percent (1 year), 4.75 percent (3 years), 5.6 percent (5 years), and 7.13 percent across various time periods (since launch). For the same time period, category returns are 3.14 percent (1 year), 4.64 percent (3 years), and 5.49 percent (5yr).
3. HDFC Liquid Fund
The HDFC Liquid Fund’s existing NAV for the Growth choice of its Regular plan is Rs 4129.8281. It has lagging returns of 3.14 percent (1 year), 4.72 percent (3 years), 5.55 percent (5 years), and 6.91 percent across various time periods (since launch). For the equal time period, category returns are 3.14 percent (1 year), 4.64 percent (3 years), and 5.49 percent (5yr).
4. Invesco India Liquid Fund
The Invesco India Liquid Fund’s latest NAV for the Growth alternative of its Regular plan is Rs 2889.4761.
It has lagging returns of 3.2 percent (1 year), 4.71 percent (3 years), 5.62 percent (5 years), and 7.26 percent across various time periods (since launch). For the equivalent time period, category returns are 3.14 percent (1 year), 4.64 percent (3 years), and 5.49 percent (5yr).
5. Axis Liquid Fund
The Axis Liquid Fund’s contemporary NAV for the Growth alternative of its Regular plan is Rs 2337.4595. It has the following returns of 3.22 percent (1 year), 4.84 percent (3 years), 5.71 percent (5 years), and 7.18 percent across various time periods (since launch). For the same time period, category returns are 3.14 percent (1 year), 4.64 percent (3 years), and 5.49 percent (5yr).
Bottom Line
These liquid mutual funds meaning investments provide liquidity rather than good yields. Consumers looking for a place to put their excess cash might explore liquid funds as a potential choice. Some funds even earn yields of 8% to 9%, which should be favoured above a standard savings bank account with returns of 3% to 6%. However, traders should not put their whole emergency savings into liquid funds because the money would only be credited the following working day if the funds are redeemed. Novice investors who wish to learn how to invest in mutual funds in India may benefit from the reasonable minimum investment. For as little as 100 rupees, you may engage in India’s top liquid mutual funds.
