Top Liquid Mutual Funds to Consider When Opening a Demat Account

Liquid mutual funds are investments in which money can be invested in a safe and liquid form. These mutual funds are invested in short-term debt securities in the form of a certificate of deposit with commercial papers, treasury bills, and high liquidity. Moreover, these are ideal for someone who wants to earn more than in a savings account but not take much risk. Also, liquid mutual funds can keep money in an emergency reserve while earning good returns. Thus, they invest money securely while making money accessible to you.

The Top 5 Liquid Mutual Funds to Consider

Each of these funds offers a unique mixture of performance, low cost, and stability, making them an ideal option for investing in liquid funds with a focus on safety and liquidity.

1. Quant Liquid Plan: It offers a three-year cumulative annual growth rate (CAGR) of 6.46% and a five-year CAGR of 5.78% to return stable amounts in the long run. It has assets under management (AUM) value of ₹1,756.22 crore and an expense ratio of only 0.25% to maintain minimal cost. Quant Money Managers Limited, with an overall management amount of ₹95,237.34 crore in 27 schemes, is responsible for managing the scheme. The scheme reflects innovative management in providing liquidity to maintain stability while ensuring liquidity.
2. Mahindra Manulife Liquid Fund: The fund has obtained a three-year CAGR of 6.57% and a five-year CAGR of 5.48% to get a stable return. It has an AUM of ₹ 1,157.76 crore with an expense ratio of only 0.16%. Moreover, it is managed by Mahindra Asset Management Company, which has experience in handling assets valued at ₹28,468.23 crore in 23 schemes. Moreover, because of its performance with minimal risk, it yields liquidity with less volatility.
3. Edelweiss Liquid Fund: The Edelweiss Liquid Fund offers competitive returns while having an efficient cost pattern. It has been a stable investor choice with a three-year CAGR return of 6.54% and a five-year CAGR return of 5.48%. It has an AUM worth ₹5,489.08 crore with an efficient cost ratio of only 0.08%. Also, it has an over-watch of over ₹1,05,310.95 crore in 50 schemes. However, it indicates an efficient performance in providing stable yields.
4. Aditya Birla Sun Life Liquid Fund: Aditya Birla Sun Life Liquid Fund provides stable yet attractive yields. In addition, the fund has given a three-year CAGR return of 6.56% and a five-year CAGR return of 5.48% as a good liquid scheme. Moreover, Aditya Birla Sun Life AMC manages an overall amount of ₹3,66,430.62 crore in 95 schemes. The international expertise and in-house experience to offer liquidity management to cater to investor requirements.
5. Union Liquid Fund: Finally, the Union Liquid Fund is an economical yet stable scheme to invest in, with a three-year CAGR of 6.54% and a five-year CAGR of 5.47%. It has an AUM value of ₹3,742.53 crore with an efficient expense ratio of just 0.07%. This is an incredibly efficient short-term scheme in which to invest. Union Asset Management Company is responsible for this scheme with an overall management amount of ₹19,230.94 crore in 27 schemes.

Conclusion

To sum up, mutual funds are relatively secure investments with little risk while ensuring instant cash accessibility and maintaining return potential. When opening a Demat account, top liquid mutual funds should be chosen by individuals who opt for stability and liquidity.  So, open demat account to get your investments started and diversify your portfolio now. Thus, liquid mutual funds can be invested to secure capital while ensuring lucrative yields.