These funds are known for their high liquidity and low volatility, making them ideal for short-term investments. This ensures quick access to funds whenever you need them, while you earn higher returns. In this post, we have curated the best liquid funds where you can park your money for the short term.
Top Five Liquid Funds To Park Your Money
With liquid mutual funds, you can strike the right balance between safety and consistency in returns. Conservative investors looking to park their funds for the short term without exposure to the volatile market find liquid funds to be an ideal option.
Here are some of the best liquid funds that offer stability and decent returns (data presented as on 31st March 2025).
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Quant Liquid Fund
Quant Liquid Fund invests in high-quality debt instruments with low maturity periods, which reduces the risks of changes in interest rates. It is suitable for those looking for a secure investment avenue for the short term, ensuring quick redemption and hassle-free transactions. You can create an SIP in this liquid fund with just INR 1000.
- AUM: INR 1,602.88 crore
- NAV: INR 41.4752
- Expense ratio: 0.26%
- 1-Year return: 7.32%
- 3-Year return: 6.64%
- 5-Year return: 5.81%
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Edelweiss Liquid Fund
The Edelweiss Liquid Fund preserves the capital of investors while delivering steady returns. It invests in high-rated debt instruments, ensuring minimal credit risk. This disciplined approach to portfolio management enhances its liquidity and stability.
- AUM: INR 7,269.86 crore
- NAV: INR 3,332.6448
- Expense ratio: 0.09%
- 1-Year return: 7.42%
- 3-Year return: 6.73%
- 5-Year return: 5.53%
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Aditya Birla Sun Life Liquid Fund
If you’re looking for a secure option to park funds with immediate liquidity, the Aditya Birla Sun Life Liquid will be a great choice. It invests in stable money market instruments to ensure low volatility and consistent performance. The active risk management strategy helps in safeguarding your capital while you enjoy competitive returns than traditional savings accounts.
- AUM: INR 51,655 crore
- NAV: INR 419.0880
- Expense ratio: 0.21%
- 1-Year return: 7.40%
- 3-Year return: 6.76%
- 5-Year return: 5.53%
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Axis Liquid Fund
The Axis Liquid Fund is suitable for investors looking for stability and liquidity. It invests in short-term debt securities and is known for its conservative approach. This ensures minimal fluctuations in interest rates, making it a dependable choice for parking your funds. Besides creating an SIP, you can also deposit a minimum lump sum amount of INR 500 in this fund.
- AUM: INR 42,866.60 crore
- NAV: INR 2,867.3667
- Expense ratio: 0.09%
- 1-Year return: 7.39%
- 3-Year return: 6.74%
- 5-Year return: 5.50%
5. ICICI Prudential Liquid Fund
One of the popular mutual funds noted for its safe and reasonable returns, the ICICI Prudential Liquid Fund invests in high-quality debt instruments. Whether you are building your emergency fund or have a temporary surplus amount to park, this liquid fund can offer stability.
- AUM: INR 55,112.40 crore
- NAV: INR 381.7570
- Expense ratio: 0.20%
- 1-Year return: 7.36%
- 3-Year return: 6.68%
- 5-Year return: 5.48%
Conclusion
Whether you are looking for decent returns while your money sits idle, or want to build an emergency fund, create an SIP in a liquid fund to make your finances work for you. These funds are a smart alternative to savings accounts. They offer competitive returns while maintaining high liquidity.
In this blog, we have presented you with the five best liquid funds that performed impressively in the short term. Prioritize your financial goals and risk appetite as you make the most of your investments.
