Aug 19, 2016 4 min read

Does Your Portfolio Need Top-Performing Liquid Funds?

Making an investment in mutual fund is a crucial decision for oneself. So, if you desire to make your portfolio worthwhile, and want to know about the top-performing liquid funds, then read this blog to the end.
There are so many perceptions in the minds of investors regarding mutual fund programme and its schemes. Some have a belief that equity funds are more beneficial while others believe debt funds to be the best. But, we all need to know what exactly are our requirements and then make the choice accordingly. To know why you should opt for the top-performing liquid funds for your investment portfolio, read further.

We all desire to be on the top and to achieve that height we put many efforts as well. Then, why not make the best choice of mutual fund scheme as well for your investment? Everyone has a common desire to obtain financial stability, right? So, what are you doing to attain that? I guess nothing. You must take an initiative now only so that you do not regret later.

Whenever we make investments, we never wish to get into a rigid structure. And hence, want such plans which could provide us flexibility, so that we could redeem our funds as and when required.

Here under, we have provided the reasons to include the top-performing liquid funds in your investment portfolio:

  • As per the definition of liquid funds, they are aimed at providing liquidity, i.e., easy cash convertibility to the investors.
  • There is no lock-in period for making investments in these funds, and thus an investor finds flexibility as well.
  • The schemes falling in this category are less prone to interest rate fluctuations and thus help to counter market volatility.
  • In a short span of time, they provide high-yielding returns to the investors in an efficient manner.
  • The investments made in this fund are safe and secure for the investors.

Thus, one can easily understand why should s(he) opt for this fund for investment portfolio. Furthermore, we also provide you with the list of the top-performing liquid funds which would help you attain the desired returns. Below-mentioned are the best schemes of this category that will offer your portfolio an incredible worth:

  1. Sundaram Money Fund - Regular Plan (G): It is a scheme of investment that falls specifically under the liquid fund’s category. It is a plan of a well-established mutual fund- The Sundaram MF, which is aimed to offer the easy cash convertibility to the investors. With a small amount of Rs.1000, one can start investing in this scheme. Furthermore, it is a growth-oriented and open-ended scheme that ensures wealth creation with higher flexibility. By holding high-ranking given by CRISIL, it holds five-star ratings which prove its proficiency. In addition, as the majority of the assets are allocated in the money market instruments, it offers high liquidity.
  2. Tata Liquid Fund (G): It is an open-ended scheme designed by the fund manager of TATA mutual fund. By offering better returns and good performance, it has been placed among the high-ranker schemes by CRISIL and thus holds four-star ratings. The rate of interest provided by this scheme are comparatively higher and thus provides maximum returns. From the very beginning, this scheme has been performing incredibly in the investments market. By allocating the majority of the funds into money market instruments and putting some of the monies in others investments, it offers the dual benefits of liquidity and diversification.
  3. UTI MMMF(G): This is an open-ended and growth-oriented scheme which is formulated by the UTI mutual fund. It has the fund size of around Rs. 9328.62 Crores (quarterly average as on 31/07/2016) which is invested in diversified industrial sectors. The major portion is put in the money market and cash instruments. It aims to provide highest possible current income consistently with preservation of capital. Furthermore, the scheme is designed to offer high liquidity by providing easy cash convertibility.
  4. Franklin India Treasury Management Account - Super Inst. Plan (G): To offer growth and stable income, Franklin Templeton mutual fund has formulated this liquid fund scheme, which falls under the open-ended category. It holds an average ranking by CRISIL and thus has been awarded three-stars rating. This scheme is beneficial for those who are looking for short-term investments and want to yield regular income. The funds of this plan are diversified into various debt, cash and money market instruments.
  5. Reliance Liquid Fund - Treasury Plan - IP (G): The investment objective of this scheme is to generate optimal returns consistently, with moderate levels of risk and high liquidity. Accordingly, investments shall predominantly are made in debt and money market instruments. The funds of this scheme are highly diversified into varied sectors and thus assure minimised risks. By allocating the funds into different assets, it provides high-yielding returns to the investors.

These schemes are designed in such a way so as to assure the desired returns as well as provide a worthwhile investment to the investors. You can buy them online also by availing the services of My SIP Online which has different solutions to cater your investment-related needs.