A liquid fund is a debt fund which invests in debt and money market  instruments with a maturity of up to 91 days. Liquid funds are ideal mutual fund schemes for  investors who wish to undertake the least amount of risk while parking their idle money for a short period of time. Liquid funds are highly popular among risk averse investors as they generally give returns higher than savings accounts. Additionally, the returns offered by liquid funds are at par with fixed deposits while simultaneously offering a higher level of liquidity. Below is a list of the 5 most popular liquid funds on the basis of the value of assets under their management.

List of Top 5 Best Liquid Funds to Invest in 2019

Returns
Fund Name 1 Year 3 Year 5 Year
HDFC Liquid Fund 7.63% 7.19% 7.72%
ICICI Prudential Liquid Fund 7.63% 7.19% 7.72%
Aditya Birla Sun Life Liquid Fund 7.63% 7.19% 7.72%
Kotak Mahindra Liquid Scheme 7.40% 7.12% 7.70%
Reliance Liquid Fund 7.63% 7.19% 7.72%

1. HDFC Liquid Fund

Inception Date:  October 2000

Fund Manager:  Mr. Anupam Joshi (since October 2015)

AUM: Rs. 63,423 crore

Fund Benchmark: CRISIL Liquid Fund Index (TRI)

Expense Ratio: 0.15% (Direct)

Average Maturity: 59 days

Modified Duration: 51 days

Yield to Maturity (YTM): 7.40%

Returns 1 Year 3 Year 5 Year
Trailing Returns 7.32% 7.04% 7.65%
Benchmark Returns 7.63% 7.19% 7.72%

(Data as on March 31, 2019)

HDFC Liquid Fund is an established liquid fund which has been in the space for nearly 2 decades now. The scheme has amassed  a staggering AUM (Assets Under Management) of Rs. 63,423 (as on March 31, 2019) since its launch in October 2000. The scheme has given attractive returns of 7.32%, 7.04% and 7.65% over the last 1 year, 3 year and 5 year periods but fallen short of outperforming its benchmark during all the 3 tenures. The scheme’s attractive performance is backed by a very credit-worthy portfolio. HDFC Liquid Fund has invested around 62.55% of its assets in AAA rated and equivalent instruments. The scheme has invested another 0.27% of its assets in sovereign debt securities which come with almost zero credit default risk. Around 9.67% and 22.86% of the scheme’s assets are invested in AA+ rated and AA/AA- rated instruments respectively. HDFC Liquid Fund is an ideal mutual fund scheme for investors who are looking for a low-risk and highly liquid scheme capable of giving good returns. The factor which makes the scheme one of the most popular liquid funds in India is its strong portfolio.

2. ICICI Prudential Liquid Fund

Inception Date: November 2005

Fund Manager: Mr. Rahul Goswami (since September 2012) & Mr. Rohan Maru (since September 2013)

AUM: Rs. 45,842 crore

Fund Benchmark: CRISIL Liquid Fund Index (TRI)

Expense Ratio: 0.15% (Direct)

Average Maturity: 59.08 days

Modified Duration: 55.03 days

Yield to Maturity (YTM): 7.33%

Returns 1 Year 3 Year 5 Year
Trailing Returns 7.42% 7.15% 7.73%
Benchmark Returns 7.63% 7.19% 7.72%

(Data as on March 31, 2019)

ICICI Prudential Liquid Fund is a more than 13-years-old liquid fund which made its debut in the category in November 2005. The scheme is becoming more and more popular among investors owing to its good performance record. The scheme yielded returns of 7.42% and 7.15% over the last 1 year and 3 year periods respectively. The scheme succeeded in outperforming its benchmark during the last 5 year period by generating a return of 7.73%. ICICI Prudential Liquid Fund is one of those liquid funds which carry potentially the least amount of credit risk as it has invested nearly all of its assets in high quality AAA rated debt instruments and government-backed sovereign debt securities. It is an apt mutual fund scheme for investors looking for a short-term savings solution which features the potential of giving high returns along with high liquidity.

3. Aditya Birla Sun Life Liquid Fund

Inception Date: June 1997

Fund Manager: Mr. Kaustubh Gupta (since July 2011) & Ms. Sunaina Da Cunha (since June 2009)

AUM: Rs. 42,071 crore

Fund Benchmark: CRISIL Liquid Fund Index (TRI)

Expense Ratio: 0.15% (Direct)

Average Maturity: 0.16 years

Modified Duration: .016 years

Yield to Maturity (YTM): 7.37%

Returns 1 Year 3 Year 5 Year
Trailing Returns 7.47% 7.19% 7.75%
Benchmark Returns 7.63% 7.19% 7.72%

(Data as on March 31, 2019)

Aditya Birla Sun Life Liquid Fund is a veteran liquid fund which was launched nearly 22 years ago in June 1997. The scheme has demonstrated a great performance over the recent years. It has generated an impressive return of 7.47% over the last 1 year period. During the previous 3 year period, the scheme mirrored its benchmark performance and yielded a return of 7.19%. The scheme outperformed its benchmark during the past 5 year period, by providing a return of 7.75% against its benchmark 5-year return of 7.72%. The scheme has invested nearly all of its assets in highly credit-worthy AAA rated debt securities. Aditya Birla Sun Life Liquid Fund is a great fund for investors looking for reasonable returns at the highest level of safety and liquidity through investments in high quality debt and money market instruments.

4. Kotak Mahindra Liquid Scheme

Inception Date: November 2003

Fund Manager: Mr. Deepak Agrawal (since July 2007)

AUM: Rs. 24,878 crore

Fund Benchmark: NIFTY Liquid Fund Index (TRI)

Expense Ratio: 0.15% (Direct)

Average Maturity: 0.13 years

Modified Duration: 0.13 years

Yield to Maturity (YTM): 7.21%

Returns 1 Year 3 Year 5 Year
Trailing Returns 7.40% 7.12% 7.70%
Benchmark Returns 7.39% 7.03% 7.59%

(Data as on March 31, 2019)

Kotak Mahindra Liquid Scheme features a proven track record spanning 15 years since its launch November 2003. It is an extraordinary fund which has outperformed its benchmark during the short, medium as well as long term tenures of 1 year, 3 years and 5 years. The scheme generated a 1-year return of 7.40% against a return of 7.39% provided by its benchmark over the last 1 year period. During the last 3 year period, the scheme outperformed its benchmark by a margin of 0.09%, generating a return of 7.12% as of March 2019. The scheme yielded an attractive return of 7.70% over the previous 5 year period, 0.11% more than its 5-year benchmark return of 7.59%. Besides giving impressive performance, the scheme also features a reliable and credit-worthy portfolio. The scheme has invested nearly all of its assets in AAA rated debt securities and sovereign debt instruments. As one of the most popular liquid funds in India, this scheme is typically favoured by investors looking for high liquidity, low risk and reasonably high returns over the short, medium as well as long term.

5. Reliance Liquid Fund

Inception Date: December 2003

Fund Manager: Mr. Anju Chhajer (since October 2013)

AUM: Rs. 30,272 crore

Fund Benchmark: CRISIL Liquid Fund Index (TRI)

Expense Ratio: 0.14% (Direct)

Average Maturity: 65 days

Modified Duration: 61 days

Yield to Maturity (YTM): 7.55%

Returns 1 Year 3 Year 5 Year
Trailing Returns 7.51% 7.19% 7.75%
Benchmark Returns 7.63% 7.19% 7.72%

(Data as on March 31, 2019)

Reliance Liquid Fund made its debut in December 2003 and has  maintained a great performance track record for over a decade. As of March 2019, the scheme has generated a return of 7.51% over the last 1 year period. During the previous 3 year period, the scheme generated a return of 7.19% – equivalent to that of its benchmark. The scheme outperformed its benchmark during the longer 5 year period by yielding a return of 7.75% as of March 2019. The scheme has invested whopping 96.08% of its assets in sovereign and AAA rated debt instruments and just 3.92% in potentially higher risk unrated debt securities. It is an apt liquid scheme for investors looking for potentially high category returns for relatively low risk quotient.

The post 5 Most Popular Liquid Funds for 2019 appeared first on Compare & Apply Loans & Credit Cards in India- Paisabazaar.com.



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