Last Updated on Oct 2, 2023 by Anjali Chourasiya

Best liquid funds in India – Updated October 2023

NameAUM (Rs. in cr.)5Y CAGR (%)3Y CAGR (%)Expense Ratio (%)Volatility (%)Minimum Lumpsum (Rs.)
Quant Liquid Plan1,807.325.845.220.290.145,000.00
Mahindra Manulife Liquid Fund794.915.384.850.150.071,000.00
Franklin India Liquid Fund-Super1,625.385.374.750.130.0710,000.00
Edelweiss Liquid Fund1,583.935.364.830.150.085,000.00
Aditya Birla SL Liquid Fund46,405.765.364.820.210.10500.00
PGIM India Liquid Fund554.685.354.810.130.095,000.00
Nippon India Liquid Fund28,533.115.344.790.200.101,000.00
Baroda BNP Paribas Liquid Fund10,252.635.324.830.190.085,000.00
Axis Liquid Fund27,001.805.314.790.170.08500.00
LIC MF Liquid Fund8,561.895.304.780.160.085,000.00

Note: The above information is dated 1st October 2022. The parameters used to filter the list of top flexi cap funds on Tickertape’s Mutual Fund Screener are:

  • Category > Debt > Liquid Fund
  • Plan – Growth
  • 5Y CAGR: Set high to low

What are liquid funds?

Liquid mutual funds are also known as money-market funds. They ensure high liquidity to the investors by investing their capital in short-term debt instruments and money market securities. They are considered secure investment instruments because of the high credit rating of money market instruments and the minuscule risk of losing the invested capital. 

Some of the instruments that constitute a liquid fund’s portfolio include certificates of deposits (CDs), corporate bonds, treasury bills (T-bills), debentures, commercial paper, and more.

About the top 3 liquid funds in India

Quant Liquid Plan

Quant Mutual Fund launched the Quant Liquid Plan in 2005. The minimum lump sum investment required for this fund is Rs. 5,000. Quant Liquid Plan holds Assets Under Management (AUM) of Rs. 1,807.32 cr. as of 1st October 2023. For the same date, the Quant Liquid Plan has an NAV (Net Asset Value) of Rs. 37.49, and the expense ratio is 0.29%. To learn about its performance and peer comparison, click here.

Mahindra Manulife Liquid Fund

This is a liquid debt fund belonging to Mahindra Manulife Mutual Fund house. Launched in 2016, the fund needs a minimum lump sum investment of Rs. 1,000. Mahindra Manulife Liquid Fund holds an AUM of Rs. 794.91 cr. as of 1st October 2023 and an NAV of Rs. 1,516.28. The expense ratio of the Mahindra Manulife Liquid Fund is 0.15%. Click here to learn about its performance and fund managers.

Franklin India Liquid Fund-Super

Franklin India Liquid Fund-Super was launched in 1996 and is an open-ended liquid debt fund. As of 1st October 2023, the AUM of the fund is Rs. 1,625.38 cr. The minimum lump sum investment in Franklin India Liquid Fund-Super is Rs. 10,000. The NAV of the Sundaram Liquid Fund as of 1st October 2023 is Rs. 3,498.17, and the expense ratio is 0.13. To know about the fund’s portfolio and tax implications, click here.

Who can invest in liquid funds?

The returns offered by liquid funds are higher than that of a regular savings account. If you are an Indian and have an account with an Indian bank, then you can invest in liquid funds after completing your Know Your Customer (KYC) formalities. In case you are an NRI, you can also invest in Indian liquid funds as long as you adhere to the Foreign Exchange Management Act (FEMA).

Generally, investors choose liquid funds for the short-term investment plan. Another reason to choose liquid funds is that they also offer indexation benefits. Therefore, whether or not you should invest in liquid funds depends on your financial goals and other factors! 

Factors to consider before investing in liquid funds

Here are some crucial aspects that you must consider before investing in liquid funds in India:


Liquid funds do not experience a lot of volatility. Hence, the net asset value (NAV) of the fund remains almost steady. However, if the credit rating of any underlying security drops, then there is a possibility that the NAV can experience a drop, too. 


Regarding numbers, savings accounts in India have a return rate of ~4%. Whereas a liquid fund offers you around 4-8% returns on average. Therefore, consider the returns when you are planning to invest.

Exit load

It is critical to note that though liquid funds can be redeemed anytime, an exit load would apply if you redeem the funds within the first seven days. This would reduce the net earnings from the fund.

Expense ratio

Liquid funds charge an annual fee called an expense ratio for fund management services. This is a percentage of the total assets of the fund. Hence, this is one of the important factors to consider when choosing a liquid fund. 

Investment plan

Before investing in any instrument, make sure you have a proper investment plan. Many investors use liquid funds to create an emergency fund, offering higher liquidity while giving reasonable returns at lower risk.

Liquid funds taxation 

Liquid mutual funds come under debt funds. As per the financial bill 2023, debt funds (with less than 35% equity shares) purchased on or after 1st April 2023 are taxed as per the investor’s income tax slab. However, the debt funds purchased before 1st April 2023 are taxed as follows: 

  • If you sell your debt fund before 3 yr from the investment date, then short-term capital gain tax (STCG) is applicable. The gains will be added to your income and taxed as per your income tax slab.
  • If you sell your debt fund 3 yr from the purchase date, as per the long-term capital gains tax (LTCG), it is taxed at 20% with indexation benefits and 10% without indexation benefits.


Liquid Funds are low-risk investment instruments with better returns for a short-term investment plan. Whether to invest in liquid funds depends entirely on your financial goals. However, before investing, consult your financial advisors and tailor your portfolio for risk tolerance and market volatility before investing. You can save your efforts and time by using Tickertape’s Mutual Fund Screener to find the best mutual fund based on your risk tolerance and investment preferences!


How to invest in liquid funds?

Investing in liquid mutual funds is similar to investing in any other mutual fund. You can use Tickertape Mutual Fund Screener to find the best funds that suit your investment needs. Once you’ve chosen the best mutual fund, you can visit their website and invest. After investing in the mutual fund, you can use the Tickertape Portfolio to constantly monitor the performance of the fund. 

What are the top 5 liquid funds in 2023?

The top 5 liquid funds in 2023 are  

  • Quant Liquid Plan
  • Mahindra Manulife Liquid Fund
  • Franklin India Liquid Fund-Super
  • Edelweiss Liquid Fund
  • Aditya Birla SL Liquid Fund

Note: These are curated from Tickertape Mutual Fund Screener and as of 1st October 2023. The funds are derived based on the 5-yr CAGR. You can use your preferred parameters like 3yr-CAGR, Absolute Returns – 3M, etc., to get the top liquid funds. 

Nikitha Devi
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