The COVID-19 pandemic and the economic uncertainty that came with it taught many of us, an important lesson that ‘Cash is King’. One must keep aside some money for emergencies or unforeseen circumstances. Holding an adequate emergency fund serves to be a financial backup and is in the interest of your financial well-being. You don’t need to dig in and utilise savings and investments perhaps assigned for vital life goals, viz. children’s future needs (higher education and retirement expenses), your retirement, etc. if a certain sum of money is held in a separate banks savings and/or a Liquid Fund.
A Liquid Fund is an open-ended debt mutual fund scheme, which according to the regulatory guidelines, is mandated to invest in debt & money markets securities with a maturity of up to 91 days only. Typically, a Liquid Fund invests in securities such as Certificate of Deposits (CDs), Commercial Papers (CPs), Treasury bills (T-bills), Repos/reverse repos in securities issued by central government and state government securities, G-secs, Fixed Deposits (FDs) issued by scheduled commercial banks, Tri-Party Repo (TREPs), and so on that mature in 91 days. Hence the interest rate risk and credit risk are relatively low. A Liquid fund prioritizes safety and liquidity over returns by predominantly investing in debt papers maturing in a short period. Among the sub-categories of debt mutual funds, a Liquid Fund is placed at the lower end of the risk-return spectrum. Note, the various risks carried by debt investments such as interest rate risk, liquidity risk, default risk, etc. apply even to a Liquid Fund but are minimised with instruments maturity till 91 days. The Quantum Liquid Fund is a liquid fund that prioritises safety and liquidity over returns and invests only in Government Securities, Treasury Bills, and AAA/A1+ rated PSUs. Quantum Liquid Fund has no exposure to private corporate credit risk papers. The portfolio is disclosed weekly, and the entire portfolio is marked to market daily to ensure that the declared NAV is 'real'.
Broadly, the investment objective of a Liquid Fund is capital preservation and ensuring liquidity. Thus, a Liquid Fund is to provide optimal returns with low-to-moderate levels of risk and liquidity through judicious investments in money market and debt instruments. The performance of a Liquid Fund is usually benchmarked against the CRISIL Liquid Fund Index.
Low expense ratio
Compared to other debt mutual funds, the expense ratio (which is the fee to manage investments)...
Compared to other debt mutual funds, the expense ratio (which is the fee to manage investments) is much low, thereby keeping your cost of investment low.
You can redeem your investment in a Liquid Fund on a T+1 basis. In some cases, the instal-redemption facility is also available...
You can redeem your investment in a Liquid Fund on a T+1 basis. In some cases, the instal-redemption facility is also available (for a withdrawal of up to Rs 50,000 and the amount is credited within 30 minutes.)
Since a Liquid Fund is mandated to invest in high-quality debt & money...
Since a Liquid Fund is mandated to invest in high-quality debt & money market instruments maturing in 91 days, the risk the investor is exposed to is on the lower.
Investment in a Liquid Fund can also be made via the Systematic Investment Plan mode––ideal to build a rainy-day fund (also known as an emergency fund). In case you need the money, it can be withdrawn whenever you wish to...
Investment in a Liquid Fund can also be made via the Systematic Investment Plan mode––ideal to build a rainy-day fund (also known as an emergency fund). In case you need the money, it can be withdrawn whenever you wish to Similarly, a Liquid Fund can also be used to make systematic transfers to equity mutual fund schemes.
Potential to earn
In a rising interest rate environment, a Liquid Fund has the potential to provide...
In a rising interest rate environment, a Liquid Fund has the potential to provide slightly better market-linked returns than a conventional savings bank account.
Quantum Mutual Fund offers several mutual fund schemes in India that invest in equities, Gold, bonds, multiple asset. The company allows investors to start an SIP in any of its schemes with an amount as low as ₹500, besides offering an option to hold the units in the Demat mode.
Weekly Disclosure of portfolios
No private corporate credit risk
Marked to market daily to ensure that declared NAV is real
High porfolio liquidity and stable AUM trend
Invest only in Gov. securities, treasury bills and AAA/A1 rated public sector undertakings
|Name of the Scheme||This product is suitable for Investors who are seeking*||Risk-o-meter of Scheme|
Quantum Liquid Fund
An Open-ended Liquid Scheme.A relatively low interest rate risk and relatively low credit risk.
• Income over the sort term
• Investments in debt/money market
Investors understand that their principal will be at Low Risk.
*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.
Disclaimer: The views expressed here in this Article / Video are for general information and reading purpose only and do not constitute any guidelines and recommendations on any course of action to be followed by the reader. Quantum AMC / Quantum Mutual Fund is not guaranteeing / offering / communicating any indicative yield on investments made in the scheme(s). The views are not meant to serve as a professional guide / investment advice / intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or mutual fund units for the reader. The Article / Video has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst no action has been solicited based upon the information provided herein, due care has been taken to ensure that the facts are accurate and views given are fair and reasonable as on date. Readers of the Article / Video should rely on information/data arising out of their own investigations and advised to seek independent professional advice and arrive at an informed decision before making any investments. None of the Quantum Advisors, Quantum AMC, Quantum Trustee or Quantum Mutual Fund, their Affiliates or Representative shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary losses or damages including lost profits arising in any way on account of any action taken basis the data / information / views provided in the Article / video.
Mutual fund investments are subject to market risks read all scheme related documents carefully.
|Credit Risk →||Relatively Low (Class A)||Moderate (Class B)||Relatively High (Class C)|
|Interest Rate Risk ↓|
|Relatively Low (Class I)||
|Moderate (Class II)|
|Relatively High (Class III)|
Quantum Liquid Fund - QLF is an Open ended Liquid scheme which invests in money market and short term debt instruments.
It is an ideal tool for managing surplus cash. The advantage of investing in a Liquid fund is that redemptions can be available generally on a next day (T+1 business day) basis, which means you get your money back almost the next day after you have notified us for the redemption (subject to Ceteris Paribus conditions).
You can invest in liquid funds even for a day.
The primary investment objective of the Scheme is to provide optimal returns with low to moderate levels of risk and high liquidity through judicious investments in money market and debt instruments.
The Benchmark Index for the Scheme is the CRISIL Liquid Debt A-I Index. The Crisil Liquid fund is an index comprising of call money market rates and Commercial paper rates.
Since QLF would invest a large proportion of its assets in short term debt and money market instruments, the Crisil Liquid Fund would be an appropriate benchmark.
Mr. Pankaj Pathak (Since March 1, 2017) is managing the scheme.
Mr. Pankaj Pathak has overall 12 years of experience in debt market. Wherein 6.5 years in trading in fixed income securities, Economic Research and CRR / SLR management.
He has been with Quantum Asset Management Company Pvt. Ltd. since August 2013. Prior to joining Quantum, he was associated with Bank of Maharashtra.
He holds an B.Sc. (Electronics), degree and has completed his Post Graduate Diploma in Banking & Finance, passed all levels of CFA from CFA Institute (USA), JAIIB and CAIIB from Indian Institute of Bank Management.
The current expense ratio of the Direct Plan of the Quantum Liquid Fund is 0.16% p.a. and the expense ratio for the Regular Plan is 0.26% p.a. with effect from August 19, 2020.
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