Launched on the 16th of June, 2005, Reliance Liquidity Fund is an open-ended mutual fund investment scheme whose principal objective is to generate optimal returns consistent with moderate levels of risk while providing high liquidity. Keeping that in mind, investments shall be made predominantly in Debt and Money Market Instruments. The scheme ranks one of the top mutual funds in India and is benchmarked against CRISIL Liquid, this fund was ranked second in the ‘Liquid Category’ by CRISIL for the quarter ended June 2017 and registered a ‘good’ performance in its category. In doing so, this fund has successfully managed to move up a rank from after being ranked number three in the previous quarter. The minimum investment amount for investing in this mutual fund investment scheme is Rs. 5000.
This fund is specially designed to satisfy the current needs of investors and to fulfill their small and instant financial objectives. This fund is managed by Reliance Capital Asset Management Limited under the leadership of experienced fund manager, Mr. Amit Tripathi who’s been with the fund since its inception. Mr. Amit Tripathi has previously worked with New India Assurance Co. Ltd, Sun Invest Associates Ltd, and CFS Financial Services Pvt. Ltd. The fund is also co-managed by Mr. Vivek Sharma who joined the team in October 2013 and manages four other open-ended schemes of Reliance Mutual Fund. The fund management team primarily looks to invest in corporate debt, preference shares, treasury bills, government securities, call money, commercial papers, usance bills, commercial bills accepted/co-accepted by banks, certificates of deposit, and deposits in the bank. Mr. Tripathi and his team make use of fundamental analysis while focusing on various parameters in the economy to determine companies with a strong track-record.
This fund is an ideal alternative to a savings or fixed deposit account without compromising on liquidity minus the hassle of a lock-in period either. Investors looking to park their funds as an emergency corpus can look to stash it in this mutual fund investment scheme. It not only offers much better tax-adjusted returns than a savings bank rate if held for a time horizon over three years but also ensures you face lesser volatility while doing so. Investors can also avail of indexation benefits as well especially if they fall into a higher tax bracket. Fundamental analysis is an integral part of the investment process and the team employs a robust risk management strategy which focuses on Mr. Tripathi investing in high-quality debt instruments with higher allocation towards AAA-rated bonds. There’s also the added incentive of having no entry or exit loads. This literally means that all the money that you invest in this fund will be used to buy mutual fund investment without any additional deductions. The fund’s low expense ratio also makes it one of the least expensive funds in the category.
If you are looking for the best performing mutual funds and seeking to earn fixed deposit beating returns in the short term for fulfilling short-term goals, this fund is perfect for you. If you’re looking for a structured and disciplined advisory approach which can help meet your desired financial goals and milestones, you can approach our financial advisors for customised investment plans.