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Liquid Funds

Liquid Mutual Funds = Stability of returns + high liquidity + lower risk

About 90% of Indian households prefer to deposit their money in Saving Bank while lesser than 10% choose to invest in Mutual Funds according to SEBI Investor Survey. Assured returns and instant liquidity attract investors to save in bank accounts. Investors can consider investing their parked money in liquid funds as they also offer quick liquidity along with stable returns.

What are Liquid Mutual Funds?

Liquid Funds are open ended Mutual Fund Schemes where investments are done in Commercial Papers, Certificates of Deposit, government Treasury Bills with smaller maturity period. The primary objective of Liquid funds are to seek optimal returns along with safety and high liquidity.

Other key features of Liquid Funds

There is no entry & exit load in Liquid Funds. Instant redemption up to 50,000/- or 90& of folio value, whichever is lower is possible in Liquid funds as per SEBI. Investment in Liquid funds is done in high rated papers, thus builds a safety net for the investors. Investors should do due diligence about the portfolio attributes before investing.


Liquid Fund Schemes are ideal for the investors with low risk appetite or short-term investment horizon. However, investors should keep in mind that returns offered by liquid funds are linked to the prevailing money market yield & do not guarantee the principal amount invested and fixed returns unlike saving account. Thus, investors must choose the fund wisely as per their risk appetite and expectation on returns.

Mutual Fund investments are subject to market risk and the Investors should consider their investment objectives and risks carefully before investing & must read all scheme related document carefully

MF Invest India is registered with AMFI under ARN code: ARN144789

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