These 2 Top-Ranked Liquid Funds Are Good To Start SIP In 2022

Investing doesn't always mean for the long-term. Sometimes it is for the short term as well, that's where the Liquid Fund comes in. Liquid funds are a type of debt fund that invests in money market securities that pay a short-term fixed rate of interest. The primary goal of liquid funds is to offer investors a high level of liquidity and capital security. As a result, the fund manager invests in high-yield debt securities with a 91-day maturity. The allocations are based on the investing goal of the fund. Here, we have analyzed two Liquid Fund that is ranked 1 by CRISIL, these funds are good to start SIP.

Canara Robeca Liquid Fund- Direct plan (G)

NAV	Fund Size	Expense Ratio
₹2,534.10	₹ 2196.78 Cr	0.10%

NAV as on 28 January 2022

As it is a Liquid fund, it invests in bonds with a three-month maturity. You can expect higher returns from the fund than you would from a bank account because it is a liquid fund. The fund has a debt investment of 79.98%, with 39.12% in government securities and 40.86% in funds with extremely low-risk securities. 

The fund has a low chance of losing money, but they do not guarantee returns or capital protection. There have been a few cases where liquid funds have lost money, however, these are uncommon. It is good for investors who are seeking a short-term investment option to bank accounts or deposits.

Keep in mind that these products are only designed to outperform your bank account by a small margin. They provide consistent but low yields and are not ideal for long-term wealth accumulation. The fund has been rated 5-star by CRISIL and also stated very good performance among its peers. The risk is still there, but, it is low. 

Prag Parikh Liquid Fund - Direct Plan (G)

NAV	Fund Size	Expense Ratio
₹1,184.10	₹ 1495.49 Cr	0.16%

NAV as on 28 January 2022

The fund has a debt investment of 93.31%, with 91.97% in government securities and 1.34% in funds with extremely low-risk securities. Fund is ideal for storing money set aside for an emergency or surplus money that you won't need for a few weeks to a year. Investors who are seeking a short-term investment option to bank accounts or deposits can invest in this fund. You can expect higher returns than if you put your money in a bank account. 

These funds have a low chance of losing money, but they do not guarantee returns or capital protection. The fund has very good performance over its peers and is rated 5 star by the CRISIL. While making the decision, keep in mind that these products are only designed to outperform your bank account by a small margin. They provide consistent but low yields and are not ideal for long-term wealth accumulation. Through sensible investments in money market and debt securities, the Fund strives to generate appropriate market-related returns with lower risk and strong liquidity.

Returns on Rs 10,000 the Investment

Canara Robeca Liquid Fund- Direct plan (G)

Period Invested for	Absolute Returns	Annualised Returns	Category Avg
1 Year	3.29%	3.29%	3.39%
2 Year	6.96%	3.41%	3.68%
3 Year	13.61%	4.34%	4.59%
5 Year	30.07%	5.40%	5.53%
Since Inception	81.38%	6.78%	6.47%

Prag Parikh Liquid Fund - Direct plan (G)

Period Invested for	Absolute Returns	Annualised Returns	Category Avg
1 Year	3.26%	3.26%	3.39%
2 Year	6.96%	3.41%	3.68%
3 Year	13.16%	4.20%	4.59%
Since Inception	18.41%	4.65%	6.47%

SIP Returns - On Rs 1000 SIP

Canara Robeca Liquid Fund- Direct plan (G)

Period Invested for	Absolute Returns	Annualised Returns
1 Year	1.80%	3.32%
2 Year	3.45%	3.28%
3 Year	5.72%	3.64%
5 Year	12.35%	4.59%

Prag Parikh Liquid Fund - Direct plan (G)

Period Invested for	Absolute Returns	Annualised Returns
1 Year	1.77%	3.28%
2 Year	3.41%	3.25%
3 Year	5.65%	3.59%

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme-related documents along with Terms and conditions carefully before investing. The above-mentioned information is purely informational. The Greynium Information Technologies and the author are not liable for any losses caused as a result of a decision based on the article.