This Liquid Fund Has Delivered 6.86% Annual Average Returns, Should You Invest?

In certain situations, liquid funds do have an edge over savings accounts as these are actively managed by an expert fund manager. The returns will depend on which bank you have your account in and which liquid fund you intend to venture into. There are certain banks that can provide higher returns in their savings accounts compared to certain liquid funds and vice versa. In this article, we have given insights into the one such liquid funds that have given good returns.

HDFC Liquid Fund - Direct Plan - Growth

This is a liquid fund scheme from the HDFC Mutual Fund. The fund's assets under management as of 28 February 2022 are Rs 55604.24 Crore, and the recent declared Net Asset Value (NAV) dated 02 April 2022 is Rs 4185.1731. The fund has an expense ratio of 0.2%, which is comparatively higher than its category average return. It is an open-ended fund with a low to moderate risk level. This has been rated 1 star by the rating agency CRISIL and 2 star by Value Research. As this is a liquid fund, it is a good investment destination for short-term investment or to park contingency Funds. 

Absolute And Annualised Returns

Lump-Sum Investment Returns

Since its inception, the fund has delivered 6.86% average annual returns.

Investment Period	Absolute Returns	Annualised Returns
1 Year	10.35%	10.35%
2 Year	33.24%	15.43%
3 Year	29.58%	9.00%
5 Year	50.40%	8.50%
Since Inception	132.19%	9.55%

SIP Returns

SIP Period	Absolute Returns	Annualised Returns
1 Year	3.77%	7.06%
2 Year	12.24%	11.53%
3 Year	18.27%	11.21%
5 Year	26.41%	9.31%

Portfolio

The fund has 67.18% investment in Debt of which 18.81% in Government securities, and 48.37% in funds invested in very low-risk securities.

The fund's credit profile is moderate indicating it has lent to borrowers whose quality is good. 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 in the Reserve Bank of India (RBI), National Bank For Agriculture & Rural Development, National Thermal Power Corp. Ltd., Government Of India, and Reliance Retail Ventures Ltd.

 

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.