10 Biggest Liquid Mutual Funds in India Ranked by Assets Under Management (AUM): Do You Invest in Any?
Liquid mutual funds represent a type of debt mutual funds that allocate resources to short-term debt and money-market assets with maturities reaching 91 days. Their comparatively brief maturity profile aims to reduce interest-rate sensitivity and render them appropriate for short-term cash handling.
Fund Highlights
Liquidity - Units are typically redeemable on business days, adhering to relevant cut-off times and settlement regulations.
No assured returns - In contrast to a fixed deposit that has a specified interest rate, returns vary with market circumstances.
Tax implications - Profits depend on relevant tax regulations, varying by investment and investor.
Biggest Liquid Mutual Funds by AUM (Assets Under Management)
SBI Liquid Fund
AUM= ₹79,251.92 crore
1-year return= 6.49%
3-year CAGR=6.89%
5-year CAGR=6.36%
Expense ratio=0.20%
Key features:A portfolio of short-maturity debt, with daily valuation based on NAV and redemption according to scheme regulations.
HDFC Liquid Fund
AUM=₹71,323.34 crore
1-year return=6.50%
3-year CAGR=6.92%
5-year CAGR=6.37%
Expense ratio=0.20%
Key features:Investments in short-term debt, options for income and growth distribution, and redemption services during business days as per scheme regulations.
Aditya Birla Sun Life Liquid Fund
AUM=₹61,166.55 crore
1-year return=6.60%
3-year return=7.00%
5-year return=6.46%
Expense ratio=0.21%
Key features:Portfolio with a brief duration, growth choice, and redemption according to scheme terms.
ICICI Prudential Liquid Fund
AUM=₹55,340.44 crore
1-year return=3.01%
3-year return=6.9%
5-year return=6.4%
Expense ratio=0.20%
Key features:Short-term debt securities, options for growth and income allocation, with redemption based on scheme conditions.
Axis Liquid Fund
AUM=₹53,459.14 crore
1-year return=6.60%
3-year return=7.00%
5-year return=6.40% – 6.45%
Expense ratio=0.23%
Key features:Securities with short maturities, growth potential, and daily net asset value assessment.
Kotak Liquid Fund
AUM=₹49,073.09 crore
1-year return=6.49% to 6.5%
3-year return=6.9% to 7.0%
5-year return=6.38% to 6.4%
Expense ratio=0.1509%
Key features:Exposure to short-term debt, growth opportunities, and redemption are subject to relevant regulations.
Nippon India Liquid Fund
AUM=₹40,489.55 crore
1-year return=6.57%
3-year return=6.97%
5-year return=6.42%
Expense ratio=0.20%
Key features:Short-term investment options, various plan choices, and redemption on business days according to scheme conditions.
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UTI Liquid Fund
AUM=₹29,913.18 crore
1-year return=6.44% to 6.56%
3-year return=6.98% to 7.00%
5-year return=6.36%
Expense ratio=0.15%
Key features:Short-term fixed-income investments and redemption options according to scheme regulations.
Tata Liquid Fund
AUM=₹29,350.21 crore
1-year return=6.51%
3-year return=7.00%
5-year return=6.39%
Expense ratio=0.18%
Key features:Short-duration fixed-income exposure, growth option and redemption facilities governed by scheme terms.
DSP Liquid Plan
AUM=₹24,725.51 crore
1-year return=6.57%
3-year return=6.97%
5-year return=6.41%
Expense ratio=0.12%
Key features:Portfolio with short maturity, growth alternative, and redemption dependent on scheme terms.
Invesco India Liquid Fund
AUM=₹24,393.44 crore
1-year return=6.51%
3-year return=6.94%
5-year return=6.38%
Expense ratio=0.22%
Key features:Short-term investment approach, growth choice, and performance evaluation against benchmarks.
HSBC Liquid Fund
AUM=₹23,038.43 crore
1-year return=6.47% to 6.51%
3-year return=6.95% to 6.98%
5-year return=6.35% to 6.40%
Expense ratio=0.13%
Key features:Portfolio of short-term debt, options for growth and income distribution, and redemption according to scheme terms.
What Should Investors Check Before Investing?
Credit quality: Examine the credit ratings and issuer concentration of the fund’s investments.
Expense ratio: A reduced expense ratio may aid in cutting costs, but it does not assure better returns.
Redemption timing: Verify deadlines, settlement procedures, and if an immediate redemption option is accessible and relevant.
Taxation: Assess returns post-taxes instead of solely comparing gross returns.
Conclusion
The 12 liquid funds in this compilation provide investors a helpful benchmark for assessing some of India's biggest schemes.Ultimately, the appropriate decision relies on an investor's liquidity requirements, risk appetite, investment duration, and post-tax results. The size of a fund or its historical returns should not be the sole factors in making an investment choice. Investors need to check the most recent factsheets, portfolio disclosures, and scheme documents prior to investing.