Top 5 Best Liquid Funds to invest in 2019\r\n\r\n\r\nBefore start investing in top 5 best liquid mutual funds, as an investor, you must know what is liquid mutual funds and why you should invest in these funds.\u00a0 So, in this blog post on\u00a0Best Liquid Funds 2019-Top 5 Best Liquid Funds to invest now, we would learn in detail about liquid funds and why you should choose this funds and its benefits.\r\nWhat are liquid funds?\r\nLiquid funds are mutual funds that primarily invest in differed secured financial instruments like Fixed Deposits, Treasury Bills, Government Securities and also different money market instruments like Commercial Papers, Certificate of Deposits and other debt instruments.\u00a0These instruments are relatively less risky in nature and are not so much volatile like other equity mutual funds schemes.\r\n\r\n Liquid funds invest in\u00a0instruments up to the maturity period of 91 days and also lower than that. Due to this investment nature, liquid funds are free from interest rate risks. So, basically, liquid funds are kind of debt funds that are less volatile in nature. \r\n\r\nDue to the recent shrinkage in the interest rates offered by various banks in their savings bank account\u00a0and for fixed deposits\u00a0as well, a majority of the investors tend to switch\u00a0from this products and showing more and more interests in liquid mutual funds.\r\nWhy invest in liquid funds?\r\nLiquid\u00a0funds are very low risk products and offer tremendous liquidity. This means generally it takes one business day to process the redemption or even for some funds the redemption is processed instantly\u00a0and the amount gets credited to your bank account with no time. This advantage of such liquidity has made the liquid funds so popular among the investors. Psychologically, it helps them in thinking that the amount invested in liquid funds are like amount parked in a savings account and you can withdraw it as and when you want. \r\n\r\nGenerally, investment in\u00a0liquid funds should be made to cater to your short term goals say for 3 to 6 months. Or you can park your surplus funds in liquid funds as short term investment as it offers higher return as compared to your savings account and bank fixed deposits as well. Also, financial experts suggest investing in liquid funds to maintain the emergency funds or corpus\u00a0say usually for 6 months' expenditure. \r\n\r\nOn an average,\u00a0it is seen that liquid funds did manage in the past to generate a return of 8% to 9%\u00a0 which is much higher than savings bank account return say 4% to 6%. But if investment tenure is more than 1 year, then one should\u00a0definitely go for ultra short term funds that could deliver higher returns.\r\nWhat are the advantages of investing in best liquid funds?\r\nThe advantages of investing in liquid funds are noted down below:-\r\n\r\n \tHighly liquid product i.e. instant redemption or within\u00a024 hours;\r\n \tLower expense ratio charged by fund houses;\r\n \tA low maturity investment portfolio that prevents the NAV to fluctuate at a fast pace;\r\n \tLiquid funds generate high expected returns over savings account and fixed deposits;\r\n \tNo entry or exit loads for liquid funds;\r\n \tInvestment is made in highly rated i.e.\u00a0 AA or AAA rated instruments;\r\n \tNo possibility of erosion of your capital or investment amount in liquid funds;\r\n \tinvesting in liquid mutual funds can be done in a lump sum with very ease in the direct modes.\r\n\r\nWhich are the best liquid funds or top 5 best liquid funds to invest in 2019?\r\nAs per the last few years performance, I have selected the following liquid funds as the top 5 best liquid funds for 2019.\r\n\r\n\r\n\r\n \tAditya Birla Sun Life Liquid Fund\u00a0\r\n \tReliance Liquid Fund\u00a0\r\n \tAxis Liquid Institutional Fund\u00a0\r\n \tICICI Prudential Liquid Fund\u00a0\r\n \tKotak Liquid Fund\u00a0\r\n\r\n \r\n\r\n\r\n\r\nTop 5 Best Liquid Funds 2019 performance review (arthikdisha.com)\r\n\r\n\r\n\r\n\r\nName of Funds\r\nAnnual Returns\r\n\r\n\r\n1 Year\r\n3 Year\r\n5 Year\r\n\r\n\r\nAditya Birla Sun Life Liquid Fund Growth\r\n7.48%\r\n7.26%\r\n7.85%\r\n\r\n\r\nReliance Liquid Fund Growth\r\n7.50%\r\n7.25%\r\n7.83%\r\n\r\n\r\nAxis Liquid Institutional Fund Growth\r\n7.56%\r\n7.33%\r\n7.89%\r\n\r\n\r\nICICI Prudential Liquid Fund Growth\r\n7.45%\r\n7.22%\r\n7.80%\r\n\r\n\r\nKotak Liquid Fund Growth\r\n7.42%\r\n7.20%\r\n7.78%\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\nNow, let's make detailed fund wise analysis for top 5 best liquid funds for 2019.\r\nAditya Birla Sun Life Liquid Fund\r\nObjectives of this fund:\r\n\r\nThis fund is an open-ended liquid scheme with the objective of providing for generating high returns at a high level of safety and liquidity with judicious investment in high quality debts and money market instruments.\r\n\r\nNow let's see this fund's top 10 portfolio holdings.\r\n\r\n\r\n\r\nInstruments\r\n% Holdings\r\n\r\n\r\nIndusInd Bank Ltd.\r\n6.07\r\n\r\n\r\nSouth Indian Bank Ltd.\r\n1.96\r\n\r\n\r\n91 Days Treasury Bill - 14-Feb-2019\r\n1.92\r\n\r\n\r\nUnion Bank Of India\r\n1.87\r\n\r\n\r\nSteel Authority of India Ltd. -60D (18-Jan-19)\r\n1.85\r\n\r\n\r\nIndusInd Bank Ltd.\r\n1.85\r\n\r\n\r\nBamnipal Steel Ltd. -70D (29-Jan-19)\r\n1.85\r\n\r\n\r\nReliance Jio Infocomm Ltd. -91D (11-Mar-19)\r\n1.8\r\n\r\n\r\nL&T Finance Ltd. -122D (04-Mar-19)\r\n1.75\r\n\r\n\r\nNational Bank For Agriculture & Rural Development -170D (31-Jan-19)\r\n1.68\r\n\r\n\r\n\r\n\r\n\r\nNow, let's see in the following table the NAVs and units acquired by investing 1000 per month from 02.02.2014 to 04.02.2019.\r\n \r\n\r\n\r\n\u00a0Date of investment\r\nPurchase Price(\u20b9)\r\nUnits Purchased\r\n\r\n\r\nFeb 02, 2014\r\n202.816\r\n4.931\r\n\r\n\r\nMar 02, 2014\r\n204.161\r\n4.898\r\n\r\n\r\nApr 01, 2014\r\n205.959\r\n4.855\r\n\r\n\r\nMay 01, 2014\r\n207.515\r\n4.819\r\n\r\n\r\nJune 01, 2014\r\n209.095\r\n4.783\r\n\r\n\r\nJul 01, 2014\r\n210.594\r\n4.748\r\n\r\n\r\nAug 01, 2014\r\n212.127\r\n4.714\r\n\r\n\r\nSep 01, 2014\r\n213.669\r\n4.68\r\n\r\n\r\nOct 01, 2014\r\n215.209\r\n4.647\r\n\r\n\r\nNov 02, 2014\r\n216.857\r\n4.611\r\n\r\n\r\nDec 01, 2014\r\n218.334\r\n4.58\r\n\r\n\r\nJan 01, 2015\r\n219.906\r\n4.547\r\n\r\n\r\nFeb 01, 2015\r\n221.484\r\n4.515\r\n\r\n\r\nMar 01, 2015\r\n222.916\r\n4.486\r\n\r\n\r\nApr 05, 2015\r\n224.94\r\n4.446\r\n\r\n\r\nMay 04, 2015\r\n226.45\r\n4.416\r\n\r\n\r\nJun 01, 2015\r\n227.918\r\n4.388\r\n\r\n\r\nJul 01, 2015\r\n229.456\r\n4.358\r\n\r\n\r\nAug 02, 2015\r\n231.075\r\n4.328\r\n\r\n\r\nSep 01, 2015\r\n232.55\r\n4.3\r\n\r\n\r\nOct 01, 2015\r\n234.036\r\n4.273\r\n\r\n\r\nNov 01, 2015\r\n235.557\r\n4.245\r\n\r\n\r\nDec 01, 2015\r\n237.002\r\n4.219\r\n\r\n\r\nJan 01, 2016\r\n238.528\r\n4.192\r\n\r\n\r\nFeb 01, 2016\r\n240.039\r\n4.166\r\n\r\n\r\nMar 01, 2016\r\n241.508\r\n4.141\r\n\r\n\r\nApr 03, 2016\r\n243.61\r\n4.105\r\n\r\n\r\nMay 01, 2016\r\n245.138\r\n4.079\r\n\r\n\r\nJun 01, 2016\r\n246.783\r\n4.052\r\n\r\n\r\nJul 01, 2016\r\n248.355\r\n4.026\r\n\r\n\r\nAug 01, 2016\r\n249.913\r\n4.001\r\n\r\n\r\nSep 01, 2016\r\n251.41\r\n3.978\r\n\r\n\r\nOct 02, 2016\r\n252.907\r\n3.954\r\n\r\n\r\nNovember 01, 2016\r\n254.316\r\n3.932\r\n\r\n\r\nDec 01, 2016\r\n255.75\r\n3.91\r\n\r\n\r\nJan 01, 2017\r\n257.146\r\n3.889\r\n\r\n\r\nFeb 01, 2017\r\n258.583\r\n3.867\r\n\r\n\r\nMar 01, 2017\r\n259.886\r\n3.848\r\n\r\n\r\nApr 02, 2017\r\n261.439\r\n3.825\r\n\r\n\r\nMay 01, 2017\r\n262.791\r\n3.805\r\n\r\n\r\nJun 01, 2017\r\n264.241\r\n3.784\r\n\r\n\r\nJul 01, 2017\r\n265.676\r\n3.764\r\n\r\n\r\nAugust 01, 2017\r\n267.176\r\n3.743\r\n\r\n\r\nSep 01, 2017\r\n268.627\r\n3.723\r\n\r\n\r\nOct 01, 2017\r\n270.07\r\n3.703\r\n\r\n\r\nNov 01, 2017\r\n271.531\r\n3.683\r\n\r\n\r\nDec 01, 2017\r\n272.954\r\n3.664\r\n\r\n\r\nJan 01, 2018\r\n274.497\r\n3.643\r\n\r\n\r\nFeb 01, 2018\r\n276.007\r\n3.623\r\n\r\n\r\nMar 01, 2018\r\n277.433\r\n3.604\r\n\r\n\r\nApr 01, 2018\r\n279.382\r\n3.579\r\n\r\n\r\nMay 01, 2018\r\n280.975\r\n3.559\r\n\r\n\r\nJun 01, 2018\r\n282.574\r\n3.539\r\n\r\n\r\nJul 01, 2018\r\n284.339\r\n3.517\r\n\r\n\r\nAug 01, 2018\r\n286.121\r\n3.495\r\n\r\n\r\nSep 01, 2018\r\n287.851\r\n3.474\r\n\r\n\r\nOct 01, 2018\r\n289.536\r\n3.454\r\n\r\n\r\nNov 01, 2018\r\n291.366\r\n3.432\r\n\r\n\r\nDec 01, 2018\r\n293.236\r\n3.41\r\n\r\n\r\nJan 01, 2019\r\n295.116\r\n3.388\r\n\r\n\r\n\r\n\r\n\r\n\r\nIn the above interactive chart, you can see the NAVs and units procured by investing\u00a0\u20b91000 per month from February 2014 to February 2019.\r\nPerformance of the fund\r\n \r\n\r\n\r\nAditya Birla Sun Life Liquid Fund\r\n\r\n\r\nInvestment Period\r\nFeb 02, 2014 to Feb 04, 2019\r\n\r\n\r\nNo of Investments\r\n61\r\n\r\n\r\nTotal Amount Invested (\u20b9)\r\n\u20b961000\r\n\r\n\r\nTotal Units Purchased\r\n247.703\r\n\r\n\r\nInvestment Value as on Feb 04, 2019\r\n73594.54292\r\n\r\n\r\nLatest NAV\r\n297.108 (as on Feb 04, 2019)\r\n\r\n\r\nXIRR\r\n7.51%\r\n\r\n\r\n\r\nTherefore, you can see from the above table that the annualized return in the form of XIRR over 5 years period is 7.51% which is far better than fixed deposits or recurring deposits. Also, the gains arising from the\u00a0long term capital gain will be subjected to 20% long term capital gain tax with indexation benefit if units are held for more than 36 months. Thus, the liquid fund is very much handy in terms of tax saving as well.\r\nReliance Liquid Fund\r\nObjectives of this fund:\r\n\r\nThis fund will focus on reasonable carry with a view to maximizing returns while ensuring adequate liquidity through investments in various money market and debt instruments with maturity up to 91 days. The average maturity of the portfolio will be in the range of 30- 60 days under normal market conditions.\r\n\r\nNow let's see this fund's top portfolio holdings.\r\n \r\n\r\n\r\nInstruments\r\n% Allocation\r\n\r\n\r\nMoney Market Instruments \/ CP\r\n47.97\r\n\r\n\r\nMoney Market Instruments \/ CD\r\n43.93\r\n\r\n\r\nTreasury Bill\r\n6.26\r\n\r\n\r\nBills Rediscounting\r\n4.14\r\n\r\n\r\nVijaya Bank\r\n2.67\r\n\r\n\r\nNational Housing Bank\r\n2.67\r\n\r\n\r\nReliance Jio Infocomm Limited\r\n2.67\r\n\r\n\r\nIndusInd Bank Limited\r\n2.53\r\n\r\n\r\n\r\n\r\n\r\nNow, let's see in the following table the NAVs and units acquired by investing 1000 per month from 02.02.2014 to 04.02.2019.\r\n\r\n\r\n \r\n\r\n\r\nInvestment Date\r\nPurchase Price (\u20b9)\r\nUnits Purchased\r\n\r\n\r\nFeb 04, 2014\r\n3,084.66\r\n0.324\r\n\r\n\r\nMar 04, 2014\r\n3,105.20\r\n0.322\r\n\r\n\r\nApr 04, 2014\r\n3,131.37\r\n0.319\r\n\r\n\r\nMay 04, 2014\r\n3,154.67\r\n0.317\r\n\r\n\r\nJun 04, 2014\r\n3,178.58\r\n0.315\r\n\r\n\r\nJul 04, 2014\r\n3,201.36\r\n0.312\r\n\r\n\r\nAug 04, 2014\r\n3,224.48\r\n0.31\r\n\r\n\r\nSep 04, 2014\r\n3,247.95\r\n0.308\r\n\r\n\r\nOct 07, 2014\r\n3,273.64\r\n0.305\r\n\r\n\r\nNov 04, 2014\r\n3,295.46\r\n0.303\r\n\r\n\r\nDec 04, 2014\r\n3,318.67\r\n0.301\r\n\r\n\r\nJan 04, 2015\r\n3,342.50\r\n0.299\r\n\r\n\r\nFeb 04, 2015\r\n3,366.57\r\n0.297\r\n\r\n\r\nMar 04, 2015\r\n3,388.44\r\n0.295\r\n\r\n\r\nApr 05, 2015\r\n3,415.72\r\n0.293\r\n\r\n\r\nMay 04, 2015\r\n3,438.96\r\n0.291\r\n\r\n\r\nJun 04, 2015\r\n3,463.62\r\n0.289\r\n\r\n\r\nJul 05, 2015\r\n3,487.69\r\n0.287\r\n\r\n\r\nAug 04, 2015\r\n3,510.65\r\n0.285\r\n\r\n\r\nSep 04, 2015\r\n3,533.70\r\n0.283\r\n\r\n\r\nOct 04, 2015\r\n3,556.30\r\n0.281\r\n\r\n\r\nNov 04, 2015\r\n3,579.40\r\n0.279\r\n\r\n\r\nDec 04, 2015\r\n3,601.40\r\n0.278\r\n\r\n\r\nJan 04, 2016\r\n3,624.59\r\n0.276\r\n\r\n\r\nFeb 04, 2016\r\n3,647.54\r\n0.274\r\n\r\n\r\nMar 04, 2016\r\n3,669.96\r\n0.272\r\n\r\n\r\nApr 04, 2016\r\n3,698.71\r\n0.27\r\n\r\n\r\nMay 04, 2016\r\n3,723.39\r\n0.269\r\n\r\n\r\nJun 05, 2016\r\n3,748.97\r\n0.267\r\n\r\n\r\nJul 04, 2016\r\n3,772.02\r\n0.265\r\n\r\n\r\nAug 04, 2016\r\n3,795.46\r\n0.263\r\n\r\n\r\nSep 05, 2016\r\n3,818.85\r\n0.262\r\n\r\n\r\nOct 04, 2016\r\n3,840.23\r\n0.26\r\n\r\n\r\nNov 04, 2016\r\n3,862.43\r\n0.259\r\n\r\n\r\nDec 04, 2016\r\n3,884.19\r\n0.257\r\n\r\n\r\nJan 04, 2017\r\n3,905.48\r\n0.256\r\n\r\n\r\nFeb 05, 2017\r\n3,927.95\r\n0.255\r\n\r\n\r\nMar 05, 2017\r\n3,947.96\r\n0.253\r\n\r\n\r\nApr 05, 2017\r\n3,971.23\r\n0.252\r\n\r\n\r\nMay 04, 2017\r\n3,991.75\r\n0.251\r\n\r\n\r\nJun 04, 2017\r\n4,013.89\r\n0.249\r\n\r\n\r\nJul 04, 2017\r\n4,035.80\r\n0.248\r\n\r\n\r\nAug 04, 2017\r\n4,058.48\r\n0.246\r\n\r\n\r\nSep 04, 2017\r\n4,080.75\r\n0.245\r\n\r\n\r\nOct 04, 2017\r\n4,102.43\r\n0.244\r\n\r\n\r\nNov 04, 2017\r\n4,124.66\r\n0.242\r\n\r\n\r\nDec 04, 2017\r\n4,146.21\r\n0.241\r\n\r\n\r\nJan 04, 2018\r\n4,169.02\r\n0.24\r\n\r\n\r\nFeb 04, 2018\r\n4,192.28\r\n0.239\r\n\r\n\r\nMar 04, 2018\r\n4,213.85\r\n0.237\r\n\r\n\r\nApr 04, 2018\r\n4,243.45\r\n0.236\r\n\r\n\r\nMay 04, 2018\r\n4,267.08\r\n0.234\r\n\r\n\r\nJun 04, 2018\r\n4,291.90\r\n0.233\r\n\r\n\r\nJul 04, 2018\r\n4,319.13\r\n0.232\r\n\r\n\r\nAug 04, 2018\r\n4,345.88\r\n0.23\r\n\r\n\r\nSep 04, 2018\r\n4,372.13\r\n0.229\r\n\r\n\r\nOct 04, 2018\r\n4,398.10\r\n0.227\r\n\r\n\r\nNov 04, 2018\r\n4,426.41\r\n0.226\r\n\r\n\r\nDec 04, 2018\r\n4,454.98\r\n0.224\r\n\r\n\r\nJan 04, 2019\r\n4,483.46\r\n0.223\r\n\r\n\r\nFeb 04, 2019\r\n4,510.87\r\n0.222\r\n\r\n\r\n\r\n\r\n\r\nIn the above interactive chart, you can see the NAVs and units procured by investing\u00a0\u20b91000 per month from February 2014 to February 2019.\r\nPerformance of the fund\r\n\r\n \r\n\r\n\r\nReliance Liquid Fund\r\n\r\n\r\nInvestment Period\r\nFeb 04, 2014 to Feb 04, 2019\r\n\r\n\r\nNo of Investments\r\n61\r\n\r\n\r\nTotal Amount Invested (\u20b9)\r\n61,000.00\r\n\r\n\r\nTotal Units Purchased\r\n16.3\r\n\r\n\r\nInvestment Value as on Feb 04, 2019\r\n73,527.18\r\n\r\n\r\nLatest NAV\r\n4510.87 (as on Feb 04, 2019)\r\n\r\n\r\nXIRR\r\n7.50%\r\n\r\n\r\n\r\nTherefore, you can see from the above table that the annualized return in the form of XIRR over 5 years period is 7.50% which is far better than fixed deposits or recurring deposits. Also, the gains arising from the\u00a0long term capital gain will be subjected to 20% long term capital gain tax with indexation benefit if units are held for more than 36 months. Thus, the liquid fund is very much handy in terms of tax saving as well.\r\nAxis Liquid Institutional Fund\u00a0\r\nObjectives of this fund:\r\n\r\nThis fund seeks to generate reasonable return commensurate with low risk and high degree of liquidity from a portfolio of money market and high quality debt securities.\u00a0 However, there can be no assurance that the investment objective of the Scheme will be achieved.\r\n\r\nNow let's see this fund's top portfolio holdings.\r\n \r\n\r\n\r\nInstruments\r\n% Allocation\r\n\r\n\r\nMoney Market Instruments \/ CP\r\n75.38\r\n\r\n\r\nMoney Market Instruments \/ CD\r\n19.6\r\n\r\n\r\nTreasury Bill\r\n9.2\r\n\r\n\r\nNational Bank For Agriculture and Rural Development (04\/02\/2019)\r\n4.91\r\n\r\n\r\nBills Rediscounting\r\n4.22\r\n\r\n\r\nNTPC Limited (06\/02\/2019)\r\n3.92\r\n\r\n\r\nVijaya Bank (11\/03\/2019)\r\n3.7\r\n\r\n\r\nLarsen & Toubro Limited (31\/01\/2019)\r\n2.98\r\n\r\n\r\nIndusInd Bank Limited (10\/01\/2019)\r\n2.49\r\n\r\n\r\nGrasim Industries Limited (08\/01\/2019)\r\n2.47\r\n\r\n\r\n\r\n\r\n\r\nNow, let's see in the following table the NAVs and units acquired by investing 1000 per month from 02.02.2014 to 04.02.2019.\r\n \r\n\r\n\r\nInvestment Date\r\nPurchase Price (\u20b9)\r\nUnits Purchased\r\n\r\n\r\nFeb 04, 2014\r\n1,401.70\r\n0.713\r\n\r\n\r\nMar 04, 2014\r\n1,410.97\r\n0.709\r\n\r\n\r\nApr 04, 2014\r\n1,422.55\r\n0.703\r\n\r\n\r\nMay 04, 2014\r\n1,433.21\r\n0.698\r\n\r\n\r\nJun 04, 2014\r\n1,443.93\r\n0.693\r\n\r\n\r\nJul 04, 2014\r\n1,454.18\r\n0.688\r\n\r\n\r\nAug 04, 2014\r\n1,464.66\r\n0.683\r\n\r\n\r\nSep 04, 2014\r\n1,475.23\r\n0.678\r\n\r\n\r\nOct 04, 2014\r\n1,485.77\r\n0.673\r\n\r\n\r\nNov 04, 2014\r\n1,496.67\r\n0.668\r\n\r\n\r\nDec 04, 2014\r\n1,507.12\r\n0.664\r\n\r\n\r\nJan 04, 2015\r\n1,517.90\r\n0.659\r\n\r\n\r\nFeb 04, 2015\r\n1,528.71\r\n0.654\r\n\r\n\r\nMar 04, 2015\r\n1,538.54\r\n0.65\r\n\r\n\r\nApr 04, 2015\r\n1,550.28\r\n0.645\r\n\r\n\r\nMay 04, 2015\r\n1,561.14\r\n0.641\r\n\r\n\r\nJun 04, 2015\r\n1,572.18\r\n0.636\r\n\r\n\r\nJul 04, 2015\r\n1,582.67\r\n0.632\r\n\r\n\r\nAug 04, 2015\r\n1,593.33\r\n0.628\r\n\r\n\r\nSep 04, 2015\r\n1,603.71\r\n0.624\r\n\r\n\r\nOct 04, 2015\r\n1,613.88\r\n0.62\r\n\r\n\r\nNov 04, 2015\r\n1,624.22\r\n0.616\r\n\r\n\r\nDec 04, 2015\r\n1,634.07\r\n0.612\r\n\r\n\r\nJan 04, 2016\r\n1,644.53\r\n0.608\r\n\r\n\r\nFeb 04, 2016\r\n1,654.86\r\n0.604\r\n\r\n\r\nMar 04, 2016\r\n1,664.91\r\n0.601\r\n\r\n\r\nApr 04, 2016\r\n1,677.56\r\n0.596\r\n\r\n\r\nMay 04, 2016\r\n1,688.65\r\n0.592\r\n\r\n\r\nJun 04, 2016\r\n1,699.75\r\n0.588\r\n\r\n\r\nJul 04, 2016\r\n1,710.37\r\n0.585\r\n\r\n\r\nAug 04, 2016\r\n1,720.86\r\n0.581\r\n\r\n\r\nSep 04, 2016\r\n1,730.97\r\n0.578\r\n\r\n\r\nOct 04, 2016\r\n1,740.78\r\n0.574\r\n\r\n\r\nNov 04, 2016\r\n1,750.69\r\n0.571\r\n\r\n\r\nDec 04, 2016\r\n1,760.42\r\n0.568\r\n\r\n\r\nJan 04, 2017\r\n1,770.12\r\n0.565\r\n\r\n\r\nFeb 04, 2017\r\n1,780.02\r\n0.562\r\n\r\n\r\nMar 04, 2017\r\n1,789.02\r\n0.559\r\n\r\n\r\nApr 05, 2017\r\n1,799.72\r\n0.556\r\n\r\n\r\nMay 04, 2017\r\n1,808.92\r\n0.553\r\n\r\n\r\nJun 04, 2017\r\n1,818.92\r\n0.55\r\n\r\n\r\nJul 04, 2017\r\n1,828.70\r\n0.547\r\n\r\n\r\nAug 04, 2017\r\n1,838.91\r\n0.544\r\n\r\n\r\nSep 04, 2017\r\n1,848.90\r\n0.541\r\n\r\n\r\nOct 04, 2017\r\n1,858.72\r\n0.538\r\n\r\n\r\nNov 04, 2017\r\n1,868.76\r\n0.535\r\n\r\n\r\nDec 04, 2017\r\n1,878.48\r\n0.532\r\n\r\n\r\nJan 04, 2018\r\n1,888.81\r\n0.529\r\n\r\n\r\nFeb 04, 2018\r\n1,899.30\r\n0.527\r\n\r\n\r\nMar 04, 2018\r\n1,909.02\r\n0.524\r\n\r\n\r\nApr 04, 2018\r\n1,922.32\r\n0.52\r\n\r\n\r\nMay 04, 2018\r\n1,932.99\r\n0.517\r\n\r\n\r\nJun 04, 2018\r\n1,944.18\r\n0.514\r\n\r\n\r\nJul 04, 2018\r\n1,956.45\r\n0.511\r\n\r\n\r\nAug 04, 2018\r\n1,968.49\r\n0.508\r\n\r\n\r\nSep 04, 2018\r\n1,980.27\r\n0.505\r\n\r\n\r\nOct 04, 2018\r\n1,991.94\r\n0.502\r\n\r\n\r\nNov 04, 2018\r\n2,004.55\r\n0.499\r\n\r\n\r\nDec 04, 2018\r\n2,017.14\r\n0.496\r\n\r\n\r\nJan 04, 2019\r\n2,029.81\r\n0.493\r\n\r\n\r\nFeb 04, 2019\r\n2,042.07\r\n0.49\r\n\r\n\r\n\r\nNow, let's see in the following table the NAVs and units acquired by investing 1000 per month from 02.02.2014 to 04.02.2019.\r\n\r\n\r\n\r\nIn the above interactive chart, you can see the NAVs and units procured by investing\u00a0\u20b91000 per month from February 2014 to February 2019.\r\nPerformance of the fund\r\n \r\n\r\n\r\nAxis Liquid Fund \u00a0\r\n\r\n\r\nInvestment Period\r\nFeb 04, 2014 to Feb 04, 2019\r\n\r\n\r\nNo of Investments\r\n61\r\n\r\n\r\nTotal Amount Invested (\u20b9)\r\n61,000.00\r\n\r\n\r\nTotal Units Purchased\r\n35.95\r\n\r\n\r\nInvestment Value as on Feb 04, 2019\r\n73,412.34\r\n\r\n\r\nLatest NAV\r\n2042.07 (as on Feb 04, 2019)\r\n\r\n\r\nXIRR\r\n7.44%\r\n\r\n\r\n\r\nTherefore, you can see from the above table that the annualized return in the form of XIRR over 5 years period is 7.44% which is far better than fixed deposits or recurring deposits. Also, the gains arising from the\u00a0long term capital gain will be subjected to 20% long term capital gain tax with indexation benefit if units are held for more than 36 months. Thus, the liquid fund is very much handy in terms of tax saving as well.\r\nICICI Prudential Liquid Fund \r\nObjectives of this fund:\r\n\r\nThis fund aims to provide reasonable returns commensurate with low risk and providing a high level of liquidity, through investments made primarily in money market and debt instruments. However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved.\r\n\r\nNow let's see this fund's top 10 portfolio holdings.\r\n \r\n\r\n\r\nInstruments\r\n% Allocation\r\n\r\n\r\nMoney Market Instruments - CPs,CDs\r\n101.01\r\n\r\n\r\nNABARD\r\n3.6\r\n\r\n\r\nTata Sons Ltd.\r\n2.78\r\n\r\n\r\nAxis Bank Ltd.\r\n2.7\r\n\r\n\r\nOriental Bank Of Commerce\r\n2.69\r\n\r\n\r\nAxis Bank Ltd.\r\n2.67\r\n\r\n\r\nReliance Jio Infocomm Ltd.\r\n2.25\r\n\r\n\r\nSun Pharmaceutical Industries Ltd.\r\n1.98\r\n\r\n\r\nHDFC Ltd.\r\n1.94\r\n\r\n\r\nLIC Housing Finance Ltd.\r\n1.8\r\n\r\n\r\n\r\n\r\n\r\nNow, let's see in the following table the NAVs and units acquired by investing 1000 per month from 02.02.2014 to 04.02.2019.\r\n \r\n\r\n\r\nInvestment Date\r\nPurchase Price (\u20b9)\r\nUnits Purchased\r\n\r\n\r\nFeb 04, 2014\r\n187.2\r\n5.342\r\n\r\n\r\nMar 04, 2014\r\n188.436\r\n5.307\r\n\r\n\r\nApr 04, 2014\r\n190.014\r\n5.263\r\n\r\n\r\nMay 04, 2014\r\n191.434\r\n5.224\r\n\r\n\r\nJun 04, 2014\r\n192.871\r\n5.185\r\n\r\n\r\nJul 04, 2014\r\n194.24\r\n5.148\r\n\r\n\r\nAug 04, 2014\r\n195.639\r\n5.111\r\n\r\n\r\nSep 04, 2014\r\n197.052\r\n5.075\r\n\r\n\r\nOct 07, 2014\r\n198.596\r\n5.035\r\n\r\n\r\nNov 05, 2014\r\n199.962\r\n5.001\r\n\r\n\r\nDec 04, 2014\r\n201.311\r\n4.967\r\n\r\n\r\nJan 04, 2015\r\n202.751\r\n4.932\r\n\r\n\r\nFeb 04, 2015\r\n204.196\r\n4.897\r\n\r\n\r\nMar 04, 2015\r\n205.509\r\n4.866\r\n\r\n\r\nApr 05, 2015\r\n207.141\r\n4.828\r\n\r\n\r\nMay 04, 2015\r\n208.523\r\n4.796\r\n\r\n\r\nJun 04, 2015\r\n209.996\r\n4.762\r\n\r\n\r\nJul 05, 2015\r\n211.434\r\n4.73\r\n\r\n\r\nAug 04, 2015\r\n212.805\r\n4.699\r\n\r\n\r\nSep 04, 2015\r\n214.19\r\n4.669\r\n\r\n\r\nOct 04, 2015\r\n215.548\r\n4.639\r\n\r\n\r\nNov 04, 2015\r\n216.922\r\n4.61\r\n\r\n\r\nDec 04, 2015\r\n218.237\r\n4.582\r\n\r\n\r\nJan 04, 2016\r\n219.625\r\n4.553\r\n\r\n\r\nFeb 04, 2016\r\n221.007\r\n4.525\r\n\r\n\r\nMar 04, 2016\r\n222.354\r\n4.497\r\n\r\n\r\nApr 04, 2016\r\n224.09\r\n4.463\r\n\r\n\r\nMay 04, 2016\r\n225.56\r\n4.433\r\n\r\n\r\nJun 05, 2016\r\n227.099\r\n4.403\r\n\r\n\r\nJul 04, 2016\r\n228.483\r\n4.377\r\n\r\n\r\nAug 04, 2016\r\n229.882\r\n4.35\r\n\r\n\r\nSep 05, 2016\r\n231.282\r\n4.324\r\n\r\n\r\nOct 04, 2016\r\n232.555\r\n4.3\r\n\r\n\r\nNov 04, 2016\r\n233.879\r\n4.276\r\n\r\n\r\nDec 04, 2016\r\n235.205\r\n4.252\r\n\r\n\r\nJan 04, 2017\r\n236.468\r\n4.229\r\n\r\n\r\nFeb 05, 2017\r\n237.809\r\n4.205\r\n\r\n\r\nMar 05, 2017\r\n239.001\r\n4.184\r\n\r\n\r\nApr 05, 2017\r\n240.381\r\n4.16\r\n\r\n\r\nMay 04, 2017\r\n241.606\r\n4.139\r\n\r\n\r\nJun 04, 2017\r\n242.93\r\n4.116\r\n\r\n\r\nJul 04, 2017\r\n244.225\r\n4.095\r\n\r\n\r\nAug 04, 2017\r\n245.569\r\n4.072\r\n\r\n\r\nSep 04, 2017\r\n246.88\r\n4.051\r\n\r\n\r\nOct 04, 2017\r\n248.163\r\n4.03\r\n\r\n\r\nNov 04, 2017\r\n249.488\r\n4.008\r\n\r\n\r\nDec 04, 2017\r\n250.767\r\n3.988\r\n\r\n\r\nJan 04, 2018\r\n252.115\r\n3.966\r\n\r\n\r\nFeb 04, 2018\r\n253.499\r\n3.945\r\n\r\n\r\nMar 04, 2018\r\n254.781\r\n3.925\r\n\r\n\r\nApr 04, 2018\r\n256.589\r\n3.897\r\n\r\n\r\nMay 04, 2018\r\n257.992\r\n3.876\r\n\r\n\r\nJun 04, 2018\r\n259.471\r\n3.854\r\n\r\n\r\nJul 04, 2018\r\n261.09\r\n3.83\r\n\r\n\r\nAug 04, 2018\r\n262.682\r\n3.807\r\n\r\n\r\nSep 04, 2018\r\n264.243\r\n3.784\r\n\r\n\r\nOct 04, 2018\r\n265.75\r\n3.763\r\n\r\n\r\nNov 04, 2018\r\n267.401\r\n3.74\r\n\r\n\r\nDec 04, 2018\r\n269.087\r\n3.716\r\n\r\n\r\nJan 04, 2019\r\n270.785\r\n3.693\r\n\r\n\r\nFeb 04, 2019\r\n272.404\r\n3.671\r\n\r\n\r\n\r\nNow, let's see in the following table the NAVs and units acquired by investing 1000 per month from 02.02.2014 to 04.02.2019.\r\n\r\n\r\n\r\nIn the above interactive chart, you can see the NAVs and units procured by investing\u00a0\u20b91000 per month from February 2014 to February 2019.\r\nPerformance of the fund\r\n \r\n\r\n\r\nICICI Prudential Liquid Fund\r\n\r\n\r\nInvestment Period\r\nFeb 04, 2014 to Feb 04, 2019\r\n\r\n\r\nNo of Investments\r\n61\r\n\r\n\r\nTotal Amount Invested (\u20b9)\r\n61000\r\n\r\n\r\nTotal Units Purchased\r\n269.17\r\n\r\n\r\nInvestment Value as on Feb 04, 2019\r\n73322.98\r\n\r\n\r\nLatest NAV\r\n272.404 (as on Feb 04, 2019)\r\n\r\n\r\nXIRR\r\n7.39%\r\n\r\n\r\n\r\nTherefore, you can see from the above table that the annualized return in the form of XIRR over 5 years period is 7.39% which is far better than fixed deposits or recurring deposits. Also, the gains arising from the\u00a0long term capital gain will be subjected to 20% long term capital gain tax with indexation benefit if units are held for more than 36 months. Thus, the liquid fund is very much handy in terms of tax saving as well.\r\nKotak Liquid Fund\r\nObjectives of this fund:\r\n\r\nThis fund is a debt scheme with the objective of providing reasonable returns with high level of liquidity. The scheme seeks to achieve the investment objective through investments in judicious mix of money market instruments, corporate bonds and sovereign securities.\r\n\r\nNow let's see this fund's top 10 portfolio holdings.\r\n \r\n\r\n\r\nInstruments\r\n% Allocation\r\n\r\n\r\nMoney Market Instruments - CD\/CP\r\n102.86\r\n\r\n\r\nTreasury Bills\r\n9.09\r\n\r\n\r\nPower Finance Corporation Ltd.\r\n5.79\r\n\r\n\r\n91 Days Treasury Bill 08\/02\/2019\r\n5.04\r\n\r\n\r\nNational Bank for Agriculture & Rural Development\r\n4.74\r\n\r\n\r\nReliance Industries Ltd.\r\n4.15\r\n\r\n\r\nNational Bank for Agriculture & Rural Development\r\n4.08\r\n\r\n\r\nHindustan Zinc Ltd.\r\n3.93\r\n\r\n\r\nLIC Housing Finance Ltd.\r\n3.91\r\n\r\n\r\nReliance Jio Infocomm Ltd.\r\n3.52\r\n\r\n\r\n\r\n\r\n\r\nNow, let's see in the following table the NAVs and units acquired by investing 1000 per month from 02.02.2014 to 04.02.2019.\r\n \r\n\r\n\r\nInvestment Date\r\nPurchase Price (\u20b9)\r\nUnits Purchased\r\n\r\n\r\nFeb 04, 2014\r\n2,566.67\r\n0.39\r\n\r\n\r\nMar 04, 2014\r\n2,583.60\r\n0.387\r\n\r\n\r\nApr 04, 2014\r\n2,605.10\r\n0.384\r\n\r\n\r\nMay 04, 2014\r\n2,624.54\r\n0.381\r\n\r\n\r\nJun 04, 2014\r\n2,644.12\r\n0.378\r\n\r\n\r\nJul 04, 2014\r\n2,662.85\r\n0.376\r\n\r\n\r\nAug 04, 2014\r\n2,681.99\r\n0.373\r\n\r\n\r\nSep 04, 2014\r\n2,701.37\r\n0.37\r\n\r\n\r\nOct 07, 2014\r\n2,722.59\r\n0.367\r\n\r\n\r\nNov 05, 2014\r\n2,741.28\r\n0.365\r\n\r\n\r\nDec 04, 2014\r\n2,759.78\r\n0.362\r\n\r\n\r\nJan 04, 2015\r\n2,779.51\r\n0.36\r\n\r\n\r\nFeb 04, 2015\r\n2,799.33\r\n0.357\r\n\r\n\r\nMar 04, 2015\r\n2,817.34\r\n0.355\r\n\r\n\r\nApr 05, 2015\r\n2,839.46\r\n0.352\r\n\r\n\r\nMay 04, 2015\r\n2,858.52\r\n0.35\r\n\r\n\r\nJun 04, 2015\r\n2,878.81\r\n0.347\r\n\r\n\r\nJul 05, 2015\r\n2,898.61\r\n0.345\r\n\r\n\r\nAug 04, 2015\r\n2,917.49\r\n0.343\r\n\r\n\r\nSep 04, 2015\r\n2,936.48\r\n0.341\r\n\r\n\r\nOct 04, 2015\r\n2,954.77\r\n0.338\r\n\r\n\r\nNov 04, 2015\r\n2,973.55\r\n0.336\r\n\r\n\r\nDec 04, 2015\r\n2,991.65\r\n0.334\r\n\r\n\r\nJan 04, 2016\r\n3,010.87\r\n0.332\r\n\r\n\r\nFeb 04, 2016\r\n3,029.57\r\n0.33\r\n\r\n\r\nMar 04, 2016\r\n3,047.93\r\n0.328\r\n\r\n\r\nApr 04, 2016\r\n3,071.89\r\n0.326\r\n\r\n\r\nMay 04, 2016\r\n3,091.88\r\n0.323\r\n\r\n\r\nJun 05, 2016\r\n3,112.78\r\n0.321\r\n\r\n\r\nJul 04, 2016\r\n3,131.34\r\n0.319\r\n\r\n\r\nAug 04, 2016\r\n3,150.48\r\n0.317\r\n\r\n\r\nSep 05, 2016\r\n3,169.51\r\n0.316\r\n\r\n\r\nOct 04, 2016\r\n3,186.77\r\n0.314\r\n\r\n\r\nNov 04, 2016\r\n3,204.86\r\n0.312\r\n\r\n\r\nDec 04, 2016\r\n3,222.67\r\n0.31\r\n\r\n\r\nJan 04, 2017\r\n3,240.19\r\n0.309\r\n\r\n\r\nFeb 05, 2017\r\n3,258.63\r\n0.307\r\n\r\n\r\nMar 05, 2017\r\n3,274.88\r\n0.305\r\n\r\n\r\nApr 05, 2017\r\n3,293.67\r\n0.304\r\n\r\n\r\nMay 04, 2017\r\n3,310.40\r\n0.302\r\n\r\n\r\nJun 04, 2017\r\n3,328.61\r\n0.3\r\n\r\n\r\nJul 04, 2017\r\n3,346.36\r\n0.299\r\n\r\n\r\nAug 04, 2017\r\n3,364.77\r\n0.297\r\n\r\n\r\nSep 04, 2017\r\n3,382.91\r\n0.296\r\n\r\n\r\nOct 04, 2017\r\n3,400.59\r\n0.294\r\n\r\n\r\nNov 05, 2017\r\n3,419.35\r\n0.292\r\n\r\n\r\nDec 04, 2017\r\n3,436.42\r\n0.291\r\n\r\n\r\nJan 04, 2018\r\n3,455.08\r\n0.289\r\n\r\n\r\nFeb 04, 2018\r\n3,474.13\r\n0.288\r\n\r\n\r\nMar 04, 2018\r\n3,491.77\r\n0.286\r\n\r\n\r\nApr 04, 2018\r\n3,515.62\r\n0.284\r\n\r\n\r\nMay 04, 2018\r\n3,534.65\r\n0.283\r\n\r\n\r\nJun 04, 2018\r\n3,555.14\r\n0.281\r\n\r\n\r\nJul 04, 2018\r\n3,577.54\r\n0.28\r\n\r\n\r\nAug 05, 2018\r\n3,600.10\r\n0.278\r\n\r\n\r\nSep 04, 2018\r\n3,620.74\r\n0.276\r\n\r\n\r\nOct 04, 2018\r\n3,641.74\r\n0.275\r\n\r\n\r\nNov 04, 2018\r\n3,664.12\r\n0.273\r\n\r\n\r\nDec 04, 2018\r\n3,686.95\r\n0.271\r\n\r\n\r\nJan 04, 2019\r\n3,710.03\r\n0.27\r\n\r\n\r\nFeb 04, 2019\r\n3,732.13\r\n0.268\r\n\r\n\r\n\r\nNow, let's see in the following table the NAVs and units acquired by investing 1000 per month from 02.02.2014 to 04.02.2019.\r\n\r\n\r\n \r\n\r\n\r\nKotak Liquid Fund\r\n\r\n\r\nInvestment Period\r\nFeb 04, 2014 to Feb 04, 2019\r\n\r\n\r\nNo of Investments\r\n61\r\n\r\n\r\nTotal Amount Invested (\u20b9)\r\n61000\r\n\r\n\r\nTotal Units Purchased\r\n19.64\r\n\r\n\r\nInvestment Value as on Feb 04, 2019\r\n73299.03\r\n\r\n\r\nLatest NAV\r\n3733.51570 (as on Feb 04, 2019)\r\n\r\n\r\nXIRR\r\n7.37%\r\n\r\n\r\n\r\nTherefore, you can see from the above table that the annualized return in the form of XIRR over 5 years period is 7.37% which is far better than fixed deposits or recurring deposits. Also, the gains arising from the\u00a0long term capital gain will be subjected to 20% long term capital gain tax with indexation benefit if units are held for more than 36 months. Thus, the liquid fund is very much handy in terms of tax saving as well.\r\n\r\nFinally, you can see from the above detailed analysis how the above 5 liquid funds have performed in the last 5 years. I hope now you would be in apposition to take an informed decision if you want to invest in liquid funds. However, I would again reiterate that past performance does not guarantee future performance, but this is just an indication of past performance.\r\nAre liquid funds\u00a0tax free?\r\nNo, capital gains on liquid funds are not tax free. If you sell your fund before 36 months or 3 years you will generate STCG and have to pay short term capital gain tax on it . Short term capital gains are added to your income and are taxed as per the applicable tax slab.\r\n\r\nOn the other hand long term capital gains arising on liquid funds sold after 36 months would attract LTCG and will be taxed @20% .But this gain would be subjected to indexation benefit on your actual investment.\r\nAre liquid funds better than FD?\r\nYes, liquid funds are way better than fixed deposits. Liquid funds offer higher tax adjusted returns in form of indexation benefits. On the other hand, FDs don't allow adjustment for indexation benefits. The income earned from the FDs would be added directly to your income and is taxed as per the applicable tax slab. Liquid funds are more effective for high income individuals to some extent. Since, higher income would leave minimum opportunity for FD interest for getting tax benefits. At the same time, liquid funds allow a high income individual to off set his gains against indexation benefits and that would result into lower tax payment and high effective earning.\r\nIs liquid fund risk free?\r\nNo, not at all.\u00a0Liquid\u00a0funds are very low risk products which invest in debt mutual fund schemes and offer tremendous liquidity. But that does not mean they are completely risk free. They do bear risks to some extent like other mutual funds. But the degree of risks are much lower as compared to equity mutual funds. Liquid funds offer very low risk as the investment is made in very short tenure instruments which lowers the default risk and interest rate risk due to very short tenured.\r\n\r\n\r\nDisclaimer:\u00a0ArthikDisha is neither directly nor indirectly associated with any of the funds mentioned above. Investors are advised to take the help of financial planners before taking any investment decision as per their needs.