Best Liquid Mutual Funds for Short-Term Investments
Liquid mutual funds are a preferred choice for investors looking for short-term investment options with low risk and high liquidity. These funds invest in short-term money market instruments like treasury bills, commercial papers, and certificates of deposit, offering stability and quick access to funds.
Some of the best liquid mutual funds available in the market include:
- ICICI Prudential Liquid Fund – Offers competitive returns with a strong track record of stability.
- SBI Liquid Fund – Provides easy liquidity and is suitable for parking surplus cash.
- HDFC Liquid Fund – A reliable option with consistent performance and low volatility.
- Aditya Birla Sun Life Liquid Fund – Known for its quick redemption process and strong asset quality.
- Nippon India Liquid Fund – Ensures steady returns with minimal risk exposure.
Read also: NFO Mutual Funds
Investing in the best liquid mutual funds is ideal for individuals and businesses looking for a secure place to park their funds while earning better returns than a traditional savings account. These funds are highly liquid, allowing withdrawals within 24 hours, making them a smart choice for emergency funds or short-term financial planning.
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