Bandhan Liquid Fund - Direct Plan
An Open Ended Liquid Fund. A scheme with relatively low interest rate risk and relatively low credit risk
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What are Liquid Mutual Funds?
Ever needed a place to stash your cash where you can easily get it back when you need it? Liquid mutual funds work just like that—offering quick access to your money with minimal risk.
Liquid mutual funds are debt funds that invest in short-term assets like money market and debt instruments, with a maximum maturity of 91 days as per regulatory guidelines. Due to their short duration, liquid debt funds carry minimal risk and liquid fund returns may be relatively low.
Liquid mutual funds typically hold highly liquid short-term securities, with a mandate to invest 20% of their assets in liquid products. While liquid funds are low-risk, they are not suitable for investors seeking potentially high long-term returns. They are ideal for relative safety and liquidity.
While Systematic Investment Planning (SIP) and lumpsum options are available for liquid funds, liquid mutual funds may be better suited for lumpsum investment due to their short maturity period.
- Min Investment 100
- Min SIP Amount 100
- Exit Load
Investor exit upon subscription (Exit load as a % of redemption proceeds)
Day 1: 0.007%; Day 2: 0.0065%; Day 3: 0.0060%; Day 4: 0.0055%; Day 5: 0.005%; Day 6: 0.0045%; Day 7 onwards: 0.0000%
Scheme is suitable for building emergency corpus or for temporary parking of surplus (minimum recommended investment horizon 7 days)
Tier 1 Benchmark : NIFTY Liquid Index A-I (w.e.f. 1st April 2022)Alternate Benchmark : CRISIL 1 Year T-Bill Index
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Performance as on 31st October 2024
| Scheme Names | CAGR Returns (%) | Current value of Investment of 10,000 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 1 year | 3 year | 5 year | 10 year | 15/07/2016 Since inception | 1 year | 3 year | 5 year | 10 year | 15/07/2016 Since inception | |
| Bandhan Liquid Fund -Unclaimed IDCW Less than Three Years | 7.44 | 6.27 | 5.28 | N.A. | 5.98 | 10,746 | 12,005 | 12,940 | N.A. | 16,199 |
| 7.43 | 6.30 | 5.31 | 6.31 | 7.11 | 10,745 | 12,013 | 12,954 | 18,451 | 30,888 | |
| 7.54 | 5.97 | 5.52 | 6.39 | 6.05 | 10,756 | 11,902 | 13,087 | 18,593 | 16,288 | |
| ^ Tier 1 Benchmark | ^^ Alternate Benchmark | ^^^ Tier 2 Benchmark | ||||||||||
This fund is managed by Mr. Harshal Joshi (w.e.f 15/09/2015) & Mr. Brijesh Shah (w.e.f 01/12/2021)
View fund performance of other funds managed by Mr. Harshal Joshi, Mr. Brijesh Shah
Past performance may or may not be sustained in future.
Regular and Direct Plans have different expense structure. Direct Plan shall have a lower expense ratio excluding distribution expenses, commission expenses etc.
Taxation:
For taxation, please refer the link : https://bit.ly/46xQzi1
Bandhan Liquid Fund
(Scheme Risk-o-meter)
NIFTY Liquid Index A-I (w.e.f. 1st April 2022)
(Tier 1 Benchmark Risk-o-meter)
This product is suitable for investors who are seeking* :
- To generate short term optimal returns with stability and high liquidity.
- Investments in money market and debt instruments, with maturity up to 91 days.
How are Liquid Funds different from Fixed Deposits?
Liquid Fund Meaning: A liquid mutual fund is a debt fund which invests in short-term money market and debt securities.
Fixed Deposit Meaning: Fixed deposits are a lumpsum investment for a fixed tenure.
Liquid Funds Maturity: Liquid mutual funds have a maturity period of ninety-one days.
Fixed Deposit Maturity: Fixed deposits do not have a fixed maturity period, they can be short or long-term.
Liquid Fund Returns: Liquid fund returns may fluctuate depending on the market conditions. Although a low-risk mutual fund, liquid funds are subject to market risks.
Fixed Deposit Returns: Fixed deposit returns are not subject to market risks.
Liquid Fund Interest Rates: The interest rates of Liquid Funds may fluctuate due to market conditions.
Fixed Deposit Interest Rates: Interest rates of fixed deposits are relatively more stable.
Who Should Invest in Liquid Funds in India?
Liquid funds in India are low-risk investments suitable for investors with a short investment horizon of up to 91 days. Although liquid fund returns are relatively low, liquid funds often offer potentially higher gains than traditional bank accounts. Their flexible holding periods and easy exit options make them ideal for investors seeking low-risk, short-term investments.
FAQs on Liquid Mutual Funds
What are Liquid Mutual Funds?
Liquid Funds are a kind of a debt fund which are categorised as a low risk investment option. They are suitable for investors seeking short-term investments with a maximum maturity period of 91 days.
Are Liquid Funds in India tax free?
No, Liquid Funds are taxable. If an investor sells or redeems a liquid fund before three years, the returns are subject to short-term capital gains tax. Units sold or redeemed after three years are subject to long-term capital gains tax.
What are the disadvantages of Liquid Mutual Funds?
Liquid Funds are suitable for investors looking for low-risk and short-term investments. Liquid Funds returns are minimal and these funds do not serve the purpose of wealth creation. One of the major disadvantages of liquid mutual funds is their minimal returns.
Are Liquid Funds risky?
Liquid Funds are categorised as a low-risk investment option. As per the regulator’s guidelines, liquid mutual funds have a mandated exposure of 20% in liquid assets and they cannot invest in risky assets. Consequently, liquid fund returns may be relatively lower.
What is Liquid Fund interest rate?
As a low-risk, short-term investment, Liquid Funds have a relatively low interest rate. Interest rates for liquid funds are dependent on market conditions and can fluctuate from 5%-7%.
What are the advantages of Liquid Mutual Funds?
Liquid Funds are a low risk investment and are suitable for risk averse investors. As a short-term investment they are comparatively less vulnerable to interest rate risk and are highly liquid. Liquid fund returns may be favourable for investors in the short-term.
Can you invest in Liquid Funds via SIP?
SIP investments are a good option for periodic, monthly, quarterly or even yearly investments. However, for short-term and low risk investment options like liquid funds, investors may prefer to invest via lumpsum investment.