Top Liquid Funds in India

I studied several liquid funds and their performance for the past four- five years. I have come up with the following Liquid Funds (not in any particular favorable order) which I think are quite good. None of them have ever given negative returns in any quarter (yes! in some cases Liquid Funds can give negative returns) and almost all of them are quite close or above the average good performance. If there is enough interest, i can upload actual numbers which can help you to compare later.

HDFC LIQUID FUND

BOB LIQUID FUND

CANARA ROBECO LIQUID FUND

DBS CHOLA LIQUID FUND – REGULAR

ING LIQUID FUND

LIC MF LIQUID FUND

TATA LIQUID FUND

Remarks:

• I have not included the study of Liquid Plus Funds while performing the above study.
• Of all the above, LIC MF Liquif Fund seems to be particularly better. I would choose this Liquid Fund as of today.

Let me remind you of a thumb rule. If you expect inflation and interest rates to increase in the near term future, that is the best time to invest in Liquid Funds. If you expect interest rates to decrease, it is a good idea to pull out of the Liquid Funds, or at least postpone new investments. Currently inflation seems to be moving downwards, and RBI obsessed with boosting growth is likely to keep revising interest rates downwards. So this is not a good time to invest in Liquid Funds.

Related posts:

• Liquid Funds: What, Why, How, etc.