In this blog  we are going to talk about some one of the best LIQUID funds which can generate better returns than your savings account and sometimes even better than fixed deposit(FD). So here is the list of best funds which are nearly risk free and are generating better returns than your savings account past several years. 

           

               In savings account a person gets an average return of 3-4% excluding taxes and other charges but in liquid fund you can get an annual return of 6-7% without any taxes or charges with very very low risk. 

                    One of the biggest advantages of liquid funds are that money invested in these funds can be withdrawn any time with a very low exit load fee. Money withdrawn from these funds comes into bank account within 1-2 working days.

Since these funds provide liquidity and not high returns, it is advisable for investors searching for options to park their idle money to consider liquid funds as an alternative for a regular savings bank account. However, investors should not invest their entire emergency corpus in liquid funds as the redemption of the funds will credit the money only on the next working day. Ideally, liquid funds are suitable for achieving short-term financial goals. Since some funds generate around 8% to 9% returns, they should be preferred over a regular savings bank account which offers returns in the range of 4% to 6%. The asset allocation of liquid funds is such that there is hardly any risk, volatility, or default associated, provided one invests in the high rated (AAA or AA) liquid funds.

Some of the best liquid funds in India are