With 3.23% Returns In A Year, This Liquid Fund Is To Park Emergency Fund

We often come into situation of surplus cash that must be invested. Fixed deposits, on the other hand, are not an option since they include a lock-in term that prevents access to the money. A liquid fund might be one of the most helpful investing alternatives in such a circumstance. In this article, we have given details of one such liquid fund that could be a good investment destination for your surplus amount. Check out the details here!

IIFL Liquid Fund - Direct Plan-Growth

This is a short investment purpose fund from the IIFL Asset Management Company. The fund has Rs 559.28 Crore worth of assets under management. The NAV of this fund is 1642.3557 declared on 08 April 2022. Its expense ratio is 0.2%. It is an open-ended liquid fund for short investment and could be a good alternative for your emergency fund. 

The fund has been rated 1-Star by the rating agency CRISIL. As the fund is a debt fund, it is a low to moderately risky fund. It is an open-ended small fund of its category. To start investment in this fund, the minimum amount required is Rs 5000 and for SIP the minimum amount required is Rs 1,000. This fund offers reasonable returns and also easy liquidity. 

Absolute And Annualised Returns

Lump-Sum Investment Returns

The has given good returns since its inception. In the last 1 year, it has given 3.23% returns, whereas, since its inception, it delivered 6.08% annual average returns.

Investment Tenure	Absolute Returns	Annualised Returns
1 Year	3.23%	3.23%
2 Year	6.33%	3.12%
3 Year	12.07%	3.87%
5 Year	27.45%	4.97%
Since Inception	64.20%	6.08%

SIP Returns

SIP Tenure	Absolute Returns	Annualised Returns
1 Year	1.80%	3.36%
2 Year	3.32%	3.17%
3 Year	5.28%	3.37%
5 Year	11.20%	4.19%

Portfolio

Fund has 70.68% investment in Debt of which, 70.68% in funds invested in very low-risk securities. The fund's credit profile is high indicating it has lent to borrowers whose quality is great. Most funds in this category lend to better borrowers and hence the risk of default in this fund is higher than in the category.

The fund's top holdings are Reliance Jio Infocomm Ltd., HDFC Bank Ltd., Reserve Bank of India, National Thermal Power Corp. Ltd., and Canara Bank.

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme-related documents, and Terms and Conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.