Reliance Liquid Fund is an established liquid fund which has been among the category’s best performers for more than 15 years. This scheme has given good returns along with high liquidity to its investors since its inception in December 2003, which has made it one of the most popular liquid funds in India. It featured a staggering AUM (Assets Under Management) of Rs. 41,188 crore as on February 28, 2019.
Key Statistics of Reliance Liquid Fund Performance*
|Fund Performance||1 Year||3 Year||5 Year|
*Data Source – Pulse Labs. All data as of February 28, 2019.
Key Details of Reliance Liquid Fund
The following are some of the key details of Reliance Liquid Fund as on February 28, 2019:
- Inception Date – December 2003
- AUM – Rs. 41,188 crore
- Fund Manager – Ms. Anju Chhajer (since October 2013)
- Benchmark – Crisil Liquid Fund Index (TRI)
- Expense Ratio – 0.15% (Direct)
- Minimum Investment Requirement – Rs. 100
Reliance Liquid Fund Performance vs Benchmark*
|Instrument||1 Year||3 Year||5 Year|
|Reliance Liquid Fund||7.54%||7.24%||7.79%|
|Benchmark (Crisil Liquid Fund Index – TRI)||7.68%||7.25%||7.79%|
*Data Source – Pulse Labs; CRISIL. All data as of February 28, 2019.
Reliance Liquid Fund has performed nicely over the recent tenures. During all the above-mentioned three time periods, the scheme has given returns nearly equivalent to its benchmark. It generated returns of 7.54%, 7.24% and 7.79% over the last 1 year, 3 year and 5 year periods respectively which shows outperformance of its benchmark.The benchmark returns of this liquid scheme from Reliance Mutual Fund stood at 7.68%, 7.25% and 7.79% for the same 1 year, 3 year and 5 year periods respectively.
Asset Allocation of Reliance Liquid Fund
The following is the Asset Class-Wise Investment Breakup of Reliance Liquid Fund as of February 28, 2019:
|Asset Class||Portfolio Allocation (% of total assets)|
|Sovereign Debt Instruments||5.66%|
|AAA Rated Debt Instruments||4.21%|
|A1+ Rated Debt Instruments||84.78%|
*All data as of February 28, 2019.
Reliance Liquid Fund is inherently a low-risk instrument as it invests in securities with a maturity period of up to 91 days. Thus, it features a very low investment risk due to such a short maturity period. The scheme has invested a majority of its assets (84.78%) in A1+ rated debt instruments, followed by sovereign debt securities in which it has invested around 5.66% as of February 2019. Sovereign securities are often considered to be the safest debt instruments as they have they feature the least credit default risk. The scheme has invested another 4.21% of its assets in AAA rated debt securities, which are also ranked among the safest debt instruments. The scheme has also kept around 2.72% of its assets invested in fixed deposits.
The following are the portfolio aggregates of the Reliance Liquid Fund as of February 28, 2019:
|Modified Duration||0.11 years|
|Average Maturity||0.12 years|
|Yield To Maturity||7.23%|
*Data as on February 28, 2019.
The scheme has a Modified Duration of 0.11 years. Modified Duration reflects how sensitive a mutual fund scheme’s value is to changes in interest rates. A Modified Duration of 0.11 years reflects that the Reliance Liquid Fund is relatively less responsive to interest rate changes. The scheme’s Average Maturity period is 0.12 years which converts to nearly 44 days, which is lower than the 91 day instrument maturity period applicable to liquid funds. Thus, the Reliance Liquid Fund can be classified as highly liquid. A liquid fund can have an Average Maturity of up to 91 days. The Yield to Maturity (YTM) of the Reliance Liquid Fund stands at 7.23%. YTM means the yield which an investor can get by staying invested in a mutual fund scheme till its maturity.
Investment Facts of Reliance Liquid Fund
- Reliance Liquid Fund is a time-tested fund which has been in the category since December 2003. The scheme has remained attractive to investors since its inception nearly 15 years ago due to its high liquidity and high quality holdings.
- The scheme features a strong portfolio with its maximum assets invested in highest rated A1+ debt instruments. Additionally the sovereign debt holdings of the scheme stood at 5.66% as of February 2019.
- Reliance Liquid Fund has a YTM of 7.23% and an Average Maturity period of just 44 days. Thus this liquid fund from Reliance Mutual Fund is relatively less responsive to interest rate changes as it features a Modified Duration of just 0.11 years.
- Reliance Liquid Fund is suitable for investors who are looking for decent returns, relatively low risk and higher liquidity.