How-to liquid fund fund selection

How to select a liquid mutual fund

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Liquid fund selection prioritises capital preservation and liquidity over yield. The 50-100 bps spread between best and median liquid funds isn’t worth chasing if it means credit risk.

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Market-risk disclaimer. Mutual fund investments are subject to market risks. Past performance is not indicative of future returns. Liquid funds can drawdown during credit events.

Step-by-step procedure

See the procedure infobox above for the seven steps.

See also

External references

References

  1. SEBI (Mutual Funds) Regulations, 1996.
  2. SEBI Categorisation Circular, October 2017.
  3. SEBI Liquid Fund Norms Circular (graded exit load).
  4. AMFI Best Practice Guidelines.

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The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

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