Updated on 28.04.2026|9:42 AM
Liquid Funds
SEBI categorization of mutual fund schemes, define liquid funds as funds that invest in debt and money market securities which mature in 91 days only.
They are called liquid because units can be converted to money and get credited to accounts very easily and in some cases same day.
Benefits of investing in liquid funds
- A good alternative to savings accounts which yield less than liquid funds.
- Suitable for investors who want to park their money for a few days to a few months.
- Very low risk because they invest in Treasury Bills issued by RBI, certificates of deposits by banks etc. Also there is low or zero exposure to equity.
- They have zero or close to zero exit load.
- You can also learn more about them at: SEBI Categorization of Mutual Fund Schemes.
Example of liquid funds
For example; HDFC Liquid Fund is a liquid fund from HDFC AMC.
Similarly Axis liquid fund belongs to Axis mutual fund.
Are mutual funds safe?
Here is a personal real investing story on how I made a 1 crore portfolio starting from 500 Rs only.
You can also learn more about mutual funds in our 100+Q & A section in our Mutual Fund Learning Hub.
