Liquid Mutual Funds – Where to Invest?

Consumer VOICE has rated 12 Liquid Mutual Funds based on product offer and consumer feedback, with the criterion being restricted to 5 star and 4 star ratings.

Funds Compared : L&T Liquid Fund – Direct Plan, Baroda Pioneer Liquid Fund – Direct Plan, Axis Liquid Fund, UTI Liquid Cash Fund – Regular Plan, Tata Liquid, Tata Liquid Fund – Regular Plan, HSBC Cash Fund, Indiabulls Liquid Fund DHFL Pramerica Insta Cash Fund, Reliance Liquid Fund, Invesco India Liquid Fund, Aditya Birla Sun Life Liquid Fund, and Franklin India Liquid Fund – Super Institutional Plan.

Higher returns as against a, say, savings account interest rate, easy and fast redemption of invested money, devoid of lock-in period – there is a lot to recommend liquid mutual funds. Overall it’s a good place to park your surplus money for a short period of time. With all of the good feedback, though, it is prudent still to be fully aware of the cons, if any, and the factors that need to be considered by investors before taking the plunge, so to say. After all, liquid funds are not wholly risk-free and among other things, you will need to see which fund house your money should be headed to. The following report also assesses specific liquid mutual funds on basic parameters.

We chose 12 liquid mutual funds based on product offer and consumer feedback, with the criterion being restricted to 5 star and 4 star ratings. The parameters on which we have compared them include returns, net assets, minimum investment, minimum additional investment, fund grading, fund performance and expense ratio. We gave the highest weightage (20 points) to consumer feedback, which also helped in determining the most important and beneficial variables. These variables have a direct bearing on the product structure.

Parameters Compared

 
  • Returns
  • Net assets
  • Minimum Investment
  • Minimum Additional investment
  • Fund Grading
  • Fund Performance
  • Expense Ratio

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