Which liquid fund is safest?
Table of Contents
Which liquid fund is safest?
Liquid Mutual Funds vs Liquid mutual funds have lowest interest rate risk and default risk. They are highly liquid and can be redeemed within a day. Hence, they are ideal for parking short term surplus cash or creating an emergency fund. Liquid mutual fund is the safest type of debt fund in India.
Are liquid funds completely safe?
Although liquid funds are not entirely risk-free, however, they are low risk-low returns instruments. As they invest predominantly in debt instruments, they are subject to interest rate risk and credit risk. In this way, the fund manager reduces credit risk by holding a well-diversified portfolio of securities.
Which is the safest liquid fund in India?
Top 10 Liquid Funds In India For 2021
| Fund Name | 3 Year Returns | 5 Year Returns |
|---|---|---|
| Axis Liquid Fund | 6.21\% | 6.61\% |
| ICICI Prudential Liquid Fund | 6.17\% | 6.58\% |
| IDFC Arbitrage Fund | 5.37\% | 5.66\% |
| Principal Cash Management Fund | 2.76\% | 4.53\% |
Is phone pe liquid fund safe?
How safe are Liquid Funds? Liquid Funds are relatively safe as they invest in instruments such as government and bank securities and not in the stock market. Also, as a result, Liquid Funds offer steady returns and are suitable for investing money in the short term.
Is Nippon liquid fund safe?
₹ 31.09 Lakh You can expect to earn better returns than what you would get from a bank account. The risk of incurring a loss in these funds is negligible but they do not guarantee returns or safety of capital. Though rare, there have been few instances when liquid funds have incurred losses.
Which is the best SBI Liquid Fund?
6.24\%
| Fund name | Annual Return | Value Research Rating |
|---|---|---|
| Aditya Birla Sun Life Liquid Fund | 5.78\% | 4 |
| Nippon India Liquid Fund | 5.78\% | 4 |
| PGIM India Insta Cash Fund | 5.77\% | 4 |
| SBI Liquid Fund | 5.66\% | 3 |
Are liquid funds safe to invest in?
All liquid funds are safe as it invests its money in Highly Rated “Very short-term instruments” such as call money, CP’s, CD’s, T-Bills etc. that hold very little risk. Due to regulatory requirement, these funds can invest in instruments with a maturity of up to 91-days.
What are the top 10 liquid mutual funds?
Top 10 Liquid Mutual Funds Fund Name Category Risk 1Y Returns Rating Quant Liquid Fund Debt Moderate 4.6\% 5 star IDBI Liquid Fund Debt Low to Moderate 3.4\% 5 star Edelweiss Liquid Fund Debt Low to Moderate 3.5\% 5 star LIC MF Liquid Fund Debt Low to Moderate 3.3\% 5 star
What happened to liquidliquid funds?
Liquid fund investors were lured with higher returns. Investors fell for the temptation and parked their money which was probably meant for their contingency needs or their kid’s school fees which is due in six months or some other short term goal. In a good market, things were fine, everyone was happy.
What are the norms for a liquid fund portfolio?
These norms aim to contain credit risk in the liquid fund portfolio. Further, liquid funds must hold at least 20\% of their assets in liquid products (cash and cash equivalents such as money market securities). This ensures that they can quickly meet any redemption demands.