Which HDFC Liquid Fund is best?
Matthew Shields
Updated on March 17, 2026
Which HDFC Liquid Fund is best?
Top 5 Peer Comparison
- HDFC Liquid Fund-Growth. 3.19% 4.68%
- IDBI Liquid Fund-Growth. 3.38% 4.92%
- Quant Liquid Plan-Growth. 3.98% 5.39%
- Union Liquid Fund-Growth. 3.27% 4.72%
What is liquid fund in HDFC?
An open ended Liquid scheme. The Fund aims to invest in debt and money market instruments with residual maturity not exceeding 91 days, subject to regulatory changes from time to time.
What is the duration of liquid funds?
Definition: Liquid funds are a type of mutual funds that invest in securities with a residual maturity of up to 91 days. Assets invested are not tied up for a long time as liquid funds do not have a lock-in period.
What is average return in liquid funds?
Historically, liquid funds have provided returns in the range of 7% to 9%, which is way higher than the mere 3.5% interest that a regular savings bank account offers. Even though the returns on liquid funds are not guaranteed, more often than not, they have delivered positive returns on redemption.
Is HDFC Liquid fund Safe?
Although liquid funds are not entirely risk-free, however, they are low risk-low returns instruments. As they invest predominantly in debt instruments, they are subject to interest rate risk and credit risk.
What is liquid fund?
Liquid funds are a class of debt funds that invest in short-term fixed-interest generating money market instruments. Treasury bills, commercial paper, and so on are some of the examples of the underlying securities in the portfolio of a liquid fund.
Are liquid funds tax free?
The dividends paid out by the debt fund or liquid fund are entirely tax free in the hands of the fund investor. In case of debt funds and liquid funds this rate is 28.84%, which is a small advantage compared to the peak rate of tax that is payable on pure debt instruments like FDs.
Can I redeem liquid fund anytime?
Many other fund houses offer this facility already. Under this facility, investors can withdraw up to ₹50,000 per day almost instantly on any given day throughout the year.
Which liquid fund is best in 2021?
Top 10 Liquid Funds In India For 2021
| Fund Name | 3 Year Returns | 5 Year Returns |
|---|---|---|
| HDFC Liquid Fund | 6.04% | 6.46% |
| Invesco India Liquid Fund | 6.07% | 6.53% |
| Axis Liquid Fund | 6.21% | 6.61% |
| ICICI Prudential Liquid Fund | 6.17% | 6.58% |
Can I lose money in liquid funds?
Liquid Funds are one of the safest mutual funds. That’s because they lend to good companies for an extremely short duration, and that reduces risk. The risk of losing money is almost zero if you stay invested for some amount of time.
Can I withdraw money from liquid fund?
According to Sebi guidelines, investors are allowed to withdraw up to ₹50,000 or 90% of the investment amount, whichever is lower, per day per scheme under this facility. To make a withdrawal, you will need to put in a redemption request.
Are Liquid fund Safe?
Although liquid funds are not entirely risk-free, however, they are low risk-low returns instruments. As they invest predominantly in debt instruments, they are subject to interest rate risk and credit risk. Liquid funds ensure that your money is invested only in superior creditworthy instruments.
What is hdhdfc liquid fund – growth?
HDFC Liquid Fund – Growth. Regular Regular and Direct options of the funds are exactly same except commission to your mutual fund broker/distributor. As an investor you do not need to pay any additional fees to purchase any of these options. However both have different expense ratios.
Should I invest in liquidliquid fund?
Liquid Fund : Fund has 92.47% investment in Debt of which 39.26% in Government securities, 53.21% in funds invested in very low risk securities.. Suitable For : Investors who want to invest for very short term and are looking for alternative to bank accounts/deposits.
Is it safe to invest in liquid funds on red scale?
However if right most red scale is selected, then there is very high risk of negative returns on your investment. Liquid Fund : Fund has 92.47% investment in Debt of which 39.26% in Government securities, 53.21% in funds invested in very low risk securities..
What is the difference between liquid and savings funds?
Liquid funds scores over their nearest counterpart, the savings account because it offers pre-tax returns which are linked to underlying securities in the portfolio as compared to 3.5%- 4 % given by Savings bank account. Most liquid funds also offer instant redemption access facility on withdrawals up to Rs.50,000.
