Liquid Mutual Funds in India

Liquid funds invest in money-market instruments - treasury bills, commercial paper, certificates of deposit and similar - with a residual maturity of up to 91 days, as defined by SEBI. The short maturity keeps interest-rate risk low and credit risk modest (though not zero), while delivering yields typically a little above Overnight funds and savings accounts. They are the workhorse of short-term cash management in India: used to park surplus money for weeks to a few months, hold an emergency fund, or stage lump sums before deploying into equity via an STP. SEBI also mandates a graded exit load for the first six days to discourage ultra-short churn. Returns are steady and capital fluctuation is usually small, but a liquid fund is not a bank deposit - NAVs can dip if a holding is downgraded. The default benchmark on FindMF is the NIFTY Liquid Index. We compute trailing returns and risk metrics for all 130 Liquid funds from AMFI-published daily NAVs using a disclosed methodology, letting you compare yield and stability objectively rather than on advertised rates.

Who it suits: Savers parking surplus cash or an emergency fund for a few weeks to a few months who want better-than-savings yield with high liquidity.

49% of the 47 funds here with a computed alpha beat their benchmark over the measured window (positive alpha). Past performance is not indicative; this is analysis, not advice.