Bandhan Liquid Fund - Direct Plan
Bandhan Liquid Fund - Direct Plan
An Open Ended Liquid Fund. A scheme with relatively low interest rate risk and relatively low credit risk
What are Liquid Mutual Funds?
Liquid mutual funds are debt funds that invest in short-term assets such as money market and debt instruments. According to the regulator’s guidelines, liquid debt funds have a maturity period up to 91 days. As these funds are relatively short-term, these funds are associated with a minimal level of risk and liquid fund returns may be relatively low.
Liquid mutual funds typically hold short-term securities that are highly liquid. Liquid debt funds are mandated to hold 20% of their assets in liquid products.
Although liquid funds are low-risk funds, all mutual funds are subject to some risks. They are not a wealth creation investment option. They are a relatively safe and liquid investment option. They are not suitable for investors seeking potentially high returns in the long-run.
While Systematic Investment Planning (SIP) and lumpsum are both 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
- Performance
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Performance as on 28th March 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 | 7.39 | 5.46 | 5.18 | N.A. | 5.88 | 10,741 | 11,732 | 12,878 | N.A. | 15,530 |
| 7.30 | 5.51 | 5.21 | 6.42 | 7.10 | 10,733 | 11,747 | 12,897 | 18,644 | 29,629 | |
| 7.32 | 5.11 | 5.50 | 6.43 | 5.93 | 10,734 | 11,616 | 13,076 | 18,662 | 15,585 | |
| ^ 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/3spfzbo
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 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 categorised as a low-risk investment. They are suitable for investors with a short investment horizon as the maximum maturity period for these funds is 91 days. While liquid fund returns are relatively low, investors may get potentially greater gains as compared to a traditional bank account. Liquid mutual funds have flexible holding periods with easy exit options, making them suitable for investors seeking short-term and low risk investments in money market and debt instruments.
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.