HDFC Liquid

About HDFC Liquid Fund

HDFC Liquid Fund is an open-ended scheme that invests in debts and money market instruments. The maximum maturity is 91 days thereby reducing the long-term risk involved in similar investments. The fund is suitable for generating regular income with minimal risk. HDFC Liquid Fund manages an asset base of over Rs. 71,000 crores making it the largest fund in the segment.

Pros & Cons of HDFC Liquid Fund

HDFC Liquid Fund offers the following benefits:

1. The HDFC Liquid Fund is perfect for generating regular income over short term without taking huge risks.
2. The investment is relatively safer as the fund manager takes comparatively lower risks than its peers while still maintaining a return of 7.1%.
3. The returns are consistent for funds in this category. Liquid funds can end up investing in wrong debts securities as was evident from the recent IL&FS fiasco. However, the fund’s name did not feature in the investors.

Fund Information and Statistics of HDFC Liquid Fund

i) Inception / Launch date

The HDFC Liquid Fund was launched on October 17, 2000, by HDFC Mutual Funds.

ii) Risk level

Being a liquid fund, the risk level with HDFC liquid fund is low and suitable for an investor seeking regular income over a short term.

iii) Redemption

The units can be redeemed on any business day based on the NAV prices. The Mutual Fund shall dispatch Redemption proceeds within 10 Business Days of the Redemption date. Under normal circumstances, your fund house will dispatch the redemption proceeds within 1 business days.

iv) Fund Manager

The fixed income is managed by Mr Anupam Joshi since October 27, 2015, and the overseas investment is led by Mr Rakesh Vyas since May 10, 2012.

v) Entry / Exit load

The fund house does not charge any entry load or exit load for investment in HDFC liquid fund.

Tax benefits of investing in HDFC Liquid Fund

The Short-term capital gain tax will be levied on unit holders as per the income tax slab rate if units are held for less than 36 months. A long-term capital gains tax of 20% is applicable with indexation if units are held for more than 36 months. Additional tax under section 115R of the act is applicable on income distributed by the fund house.

About HDFC Mutual Fund

HDFC Mutual Fund was amalgamated under the Companies Act of 1956, on December 10, 1999. Later, it was approved to act as an Asset Management Company for the HDFC Mutual Fund by SEBI. The registered office of the HDFC AMC is located at Ramon House, 3rd Floor, H.T. Parekh Marg, 169, Backbay Reclamation, Churchgate, Mumbai - 400 020.