debt Fund

Liquid Mutual Funds

Park money for 1 week to 3 months with high safety and instant redemption.

Avg. Return (5Y)

6.95%

No. of Funds

Risk Level

Low

Ideal Horizon

1 week – 3 months

Top Liquid Mutual Funds Sorted by Returns

Scheme

Parag Parikh Liquid Fund

PPFAS MF

Expense: 0.14%

1Y: 7.1%

3Y: 6.2%

5Y: 5.8%

HDFC Liquid Fund

HDFC MF

Expense: 0.20%

1Y: 7.0%

3Y: 6.1%

5Y: 5.7%

SBI Liquid Fund

SBI MF

Expense: 0.18%

1Y: 6.9%

3Y: 6.0%

5Y: 5.6%

ICICI Prudential Liquid Fund

ICICI Prudential MF

Expense: 0.22%

1Y: 6.8%

3Y: 5.9%

5Y: 5.5%

* Returns are annualized and based on historical data. Past performance does not guarantee future results. Min. SIP: ₹500.

What is a Liquid Fund?

Liquid funds invest in money market instruments — treasury bills, commercial papers, certificates of deposit — maturing within 91 days. They offer better returns than savings accounts with high liquidity.

Key Advantages

Higher returns than savings accounts and FDs of similar duration
Instant redemption up to ₹50,000
Very low volatility and NAV fluctuation
Ideal for emergency fund allocation

How It Works

Fund managers invest in high-quality, short-duration debt instruments (≤91 days). The short maturity minimizes interest rate risk, and focus on AAA/A1+ rated papers ensures credit safety.