One of the most prominent management firms that provides a range of mutual fund programs for investments is Tata Mutual Fund. Investors who want to put their hard-earned money into a mutual fund scheme that offers maximum liquidity and no risk may find that Tata’s liquid mutual funds are the best option among the many schemes available. The definition of a liquid mutual fund and other pertinent information about the best liquid fund offered by Tata Mutual Fund that investors may choose for their investment portfolio are examined in the article that follows:
The definition of liquid mutual funds
One kind of mutual fund investment plan that assists investors in purchasing assets and securities with little risk is called an aliquid mutual fund. Additionally, these mutual funds are renowned for having greater liquidity, which enables investors to withdraw their money whenever they choose.
The Tata Liquid Fund
The Tata liquid fund offers its investors greater liquidity because it is an open-ended liquid fund plan. The Tata liquid fund, which is made up of debt and money market instruments, provides protection against all types of financial risk. Investing in a Tata liquid fund can help investors reduce risk and produce respectable profits. Following our list of crucial information that investors need to know about the Tata liquid fund;
Amount of funds: ₹25,965 crores
Ratio of expenses: 0.21%
₹4083.79 NAV
Launch date: January 1, 2013; minimum investment: ₹500 for SIP investments and ₹5000 for lump-sum investments
If investors redeem within six days, there is no exit load; if they redeem within seven days, there is an exit fee of 0.007%.
Previous results
The following is a list of the respectable returns that the Tata Liquid Mutual Fund has produced.
Return after a year: 7.35%
Return after three years: 6.74%
Return over five years: 5.56%
6.9% CAGR since the beginning
Holdings in the portfolio
The primary components of the Tata Liquid Mutual Fund are money market and debt instruments, together with a variety of other assets that have maturities of up to 91 days. These consist of securities and interests in the National Bank for Agriculture and Rural Development, Reliance Industries Ltd., Reliance Retail Ventures Ltd., and the Reserve Bank of India. The fund manager is in charge of overseeing the investment of premium securities with an A1 credit rating for the Tata liquid fund. A 1+ rated securities make about 80% of the fund’s investments, with the remaining 20% going toward sovereign assets.
For investors who want to park their modest investments for a little time period in order to achieve respectable returns, liquid mutual funds are a dependable choice. Overall protection against any type of financial risk or loss may be provided by the Tata liquid fund through investments in premium assets with a high credit rating, liquidity, and reduced risk.
Furthermore, by investing in securities with low risk, Tata liquid funds can even assist clients in diversifying their whole investment portfolio. However, before purchasing a liquid fund, investors must choose to do thorough study and analysis. Prior to investing, careful financial preparation, judgment, and examination of all Tata liquid fund-related factors are necessary.