Month-on-Month there has been a complete shift in the mutual fund inflows pattern, with net inflows being the highest for the liquid fund category. In October, the category as against the previous month saw net inflow of Rs 32,964 crore. Not only the liquid fund category but the entire debt fund bucket mopped up a decent inflow to the tune of 42,634 crore. So, if you are on the hunt for some short-term investment options that are as good as savings account, here are the top Crisil rated funds:
1. Canara Robeco Liquid fund: This fund from the house of Canara Robeco has an asset size of Rs 3813 crore and is ranked 1 by the rating agency Crisil. This fund has a history of 15 years with trailing 1-year return at a decent 6.98 per cent. NAV of the fund as on November 14 is Rs 2802. While the fund’s 3-year and 5-year returns are at 4.84 and 5.03 per cent, respectively. This scheme is also accorded a 4-star rating by Value Research investment firm.
Investors can invest in the scheme through the SIP route through minimum investment of Rs 1000 while Rs 5000 is needed for minimum investment.
The scheme carries an expense ratio of 0.2 per cent.
2. Parag Parikh Liquid Fund:As on October 31, the fund commands an asset size of Rs 2027 crore. The fund, in existence since 5 years, has reaped a return of 6.62 per cent over a 1-year period. NAV or the net asset value of the fund as on November 14 is Rs 1307. For minimum investment, you need to invest a sum of Rs 5000, while for SIP, one can initiate with an amount of Rs 1000. When it comes to fund allocation, the fund invests 99.54 per cent in debt securities, while the rest is mobilized in cash and cash equivalent. The fund enjoys Crisil Rank 1.
3. Baroda BNP Paribas liquid fund: The Rs 9644 crore fund from the house of Baroda BNP Paribas is rated 5-Star by Value Research, while Crisil has given it Rank 2 within the category. The fund in existence now for 14 years has delivered a return of 6.92 per cent since launch. The trailing 1-year, 3-year and 5-year returns are at 6.95 per cent, 4.88 per cent and 5.28 per cent, respectively.
Now coming to an important pointer, who could invest in these liquid funds and when is the right time to deploy your money into them
Liquid funds can offer a better return than bank fixed deposits carrying low risk. Nevertheless, the investors still need to have some risk appetite. Importantly here, the market value or the source of earnings for these securities does not depend much on the market interest rate. So, when interest rates are headed higher, they offer a comparably better return than other debt funds.
