HDFC Liquid Fund - Growth Plan

Liquid NAV 4530.6287 0 27 September, 2023

Fund Details

Category Liquid
Fund Type Open Ended
Investment Plan Growth
Launch Date 05 October, 2000
Benchmark CRISIL Liquid
Asset Size(Cr) 60619.2978
Turn over 9.03%
Min Investment ₹ 100
Min SIP Investment ₹ 500
Min Addl Investment ₹ 100
Exit Load 0.007% for redemption between 1 - 1 days
Expense Ratio 0.3
Fund Manager Anupam Joshi, Priya Ranjan, Swapnil Jangam
Fund House HDFC Mutual Fund

Investment Returns (As on 27 Sep, 2023)

Duration Returns Benchmark Category
1 W 0.13% 0.12% 0.13%
1 M 0.57% 0.54% 0.57%
3 M 1.7% 1.66% 1.7%
6 M 3.42% 3.26% 3.4%
1 Y 6.55% 6.32% 6.48%
2 Y 4.64% 5.02% 5.02%
3 Y 4.43% 4.4% 4.37%
5 Y 5.14% 4.75% 5.05%

Risk Mesasures (As on 27 Sep, 2023)

Std Dev Sharpe Beta Alpha YTM AVG Maturity
Fund 0.4 0.43 1.48 0.91 7.18 0.18
Benchmark 0 0 0 0 0 0
Returns Compare with Others
  • 1Y
  • 3Y
  • 5Y

Portfolio (As on 29 Jun, 2023)

Assets Allocation

Sector Holdings
Others 3.46%

Return Calculator

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Disclaimer: Above returns are calculated on the basis of historical NAV movement for the selected period. However, historical performance does not guarantee future returns. Investors must take investment decisions based on his/her own requirements.

Peer Comparison

Fund Name 1 Yr Rtn. 3 Yr Rtn. 5 Yr Rtn.
HDFC Liquid Fund - Growth Plan 6.55% 4.43% 5.14%
Aditya Birla Sun Life Liquid Fund - Growth 6% 4.29% 5.28%
Franklin India Liquid Fund - Super Institutional Plan - Growth 5.93% 4.23% 5.33%
Nippon India Liquid Fund -Growth Plan 5.9% 4.22% 5.25%

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HDFC Liquid Fund - Mutual Fund With Highest AUM in India

Liquid mutual funds have enhanced the savings strategy for smarter individuals who have chosen low-risk debt schemes over bank deposits for savings. HDFC Liquid Fund has been among the best schemes in the category for many years and holds the largest assets under management in the Indian mutual fund industry. Each day, the number of investors keep increasing and the AUM keeps snowballing as people are getting familiar with the benefits that can be availed through liquid mutual funds over any other conventional methods of savings. HDFC Liquid Fund is largely trusted by the investors due to multiple reasons but the back support of HDFC Mutual Fund remains the key reason why a large number of investors are relying on this particular scheme.

What are Liquid Funds?

To understand the pros and cons of HDFC Liquid Fund, it is essential to know the basics and functioning of liquid mutual funds. Liquid funds are nothing but debt mutual funds which invest 100% of the corpus in the fixed income securities which get matured within 91 days. Due to short term maturity, these funds go for the securities with high credit ratings and avoids investing in the tools with lower credit ratings or higher rate sensitivity. As per the norms of SEBI, a liquid fund cannot invest in securities with maturity tenure of more than 91 days. These funds provide better capital appreciation than regular bank deposits or any other savings platform. The returns are promising in liquid funds and the risk is minimum among all the other categories of mutual funds. A liquid fund generally invests the pooled corpus in low risk fixed income securities like bonds, debentures, treasury bills, certificate of deposits, commercial papers, G-secs, etc.

Why HDFC Liquid Fund is the Ultimate Savings Destination?

Witnessing the immense inflow of funds in the last few years, it can be concluded that HDFC Liquid Fund has become a premier destination for savings. It is also chosen for short term capital gains by the investors who want to invest for short term and have short term goals. If you have surplus cash that is not required today but might be needed later then keeping it as cash or depositing in a regular bank savings account would be a mistake as you might be reducing its buying power in the future. Investment in HDFC Liquid Fund can be quite productive as compared to bank deposits. This is the reason why the growth rate for liquid funds is dramatically higher than that of bank deposits. This liquid fund has been a top performer and is chosen by the majority due to multiple reasons.

Advantages of HDFC Liquid Fund

  • HDFC Liquid Fund is provided by HDFC Mutual Fund which is the largest fund house in India.
  • HDFC Liquid Fund holds the Highest AUM among any mutual fund category in India.
  • It has consistently delivered better gains than most of the peers in the category.
  • The category average return has been beaten by HDFC Liquid Fund every time in past.
  • It has a lower expense ratio.
  • More than 90% of the allocation is done in securities of A1+ credit ratings.
  • The rate sensitivity of the securities chosen is very low.
  • HDFC Liquid Fund is managed by highly experienced fund managers at HDFC Mutual Fund.
  • It offers high liquidity and investment, as well as redemption, can be done at anytime online conveniently.

Why is HDFC Liquid Fund Safe for Short Term Investment?

HDFC Liquid Fund is a highly trusted debt scheme which holds gigantic assets under management. The investment strategy of the fund manager is highly defensive as people do not want to face negative returns. Every kind of risk that is associated with the debt instruments are optimized by the management staff.

HDFC Liquid Fund is a low-risk debt fund and every type of risk associated with the debt tools are considered while selecting the securities:-

  1. Credit Risk: Any change in the credit ratings affects the returns it will generate. For the portfolio of HDFC Liquid Fund, the securities chosen are from trustworthy issuers which provide promising capital gains and the credit ratings of these tools never changes.
  2. Default Risk: If an issuer fails to pay back the promised amount, the securities get defaulted and the risk associated due to this phenomena is called as default risk. For HDFC Liquid Fund, default risk is negligible as securities with high credit ratings rarely gets defaulted. Until now, none of the securities in the portfolio of HDFC Liquid Fund has defaulted.
  3. Inflation Risk: It is also known as purchasing power risk and is the only risk that can be faced in HDFC Liquid Fund. It comes into the act when the inflation rate increases exponentially due to any reason and the rate of inflation gets higher than the gains of the liquid fund for a certain period. However, it is rarely observed but can only prevail for a very short period. Inflation risk is common in bank deposits as they provide lesser returns.
  4. Rate of Return Risk: The changing interest rates can affect the returns of the securities of long term maturity. It is a common factor affecting the returns of debt schemes however HDFC Liquid Fund remains untouched from this risk as the securities with short term maturity do not get affected enough by the changes in interest rates by RBI.

Who can Invest in HDFC Liquid Fund?

HDFC Liquid Fund is one of the best liquid funds in India and is chosen by millions of investors who have chosen it for multiple purposes. This top performing liquid fund has fulfilled multiple investment objectives and can be chosen for multiple investment goals. HDFC Liquid Fund is an ideal choice for:

  1. Those who seek short term capital gains 
    HDFC Liquid Fund provides consistent gains at low risk and can provide the best promising gains in the short tenure. It is an ideal choice for those who want capital appreciation by investing for a few months or weeks.
  2. Those who seek the alternative of the bank deposits 
    HDFC Liquid Fund has been highly chosen for savings purpose as an alternative of the bank deposit as it can deliver more than 7.5% gains per year while any amount deposited in bank savings account only gets appreciated by 4%. No extra charges are involved in investment and redemption and it can be done anytime from anywhere which makes it a quite convenient and productive alternative of the regular bank deposits.
  3. Those who cannot take high risk in mutual funds investment 
    Majority of the investors in India are conservative and do not prefer to invest in equity mutual funds regardless of the investment tenure. For such conservative investors, HDFC Liquid Fund can be a better choice as it delivers constant capital appreciation without showing any volatility.
  4. Those who want to reduce the risk in the portfolio 
    If you invest in pure equities of mutual funds with a very high risk factor. The fluctuations in the overall portfolio can be reduced by making investments in HDFC Liquid Fund. It provides stable returns which can balance out the volatility in the portfolio.

HDFC Liquid Fund is a prominent scheme in the Indian mutual fund industry which holds the highest Asset Under Management. The fund has been chosen by a large number of investors due to promising gains and a superior track record. If you believe your investment objective can be achieved through this scheme then start investing today at MySIPonline and take advantage of user-friendly tools like SIP Calculator, Tax Calculator, Dashboard and proficient fund recommendations.

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