Liquid Funds

Predictable Returns Better Than Your Bank Savings Account!

Parking money in a bank account may seem logical for the short term but let’s be honest, bank accounts may be liquid but not lucrative. This is where liquid funds become useful in terms of both returns and safety. The Cube Wealth app helps you invest in the best liquid funds out of the many liquid fund scheme options available.

What Are Liquid Funds?

Liquid Funds are low-risk debt mutual funds that invest your money in very short-term market instruments such as treasury bills, government securities, corporate bonds, etc. that hold the least amount of risk. Unlike other debt mutual funds, there is no exit load on liquid funds after 7 days.

Who Is This Suitable For?

Liquid funds are suitable for investors that want to earn better returns than their bank account and get fast access to their cash without any penalty or lock-in.

Investors turn to liquid funds for creating an emergency bucket which is ideally 3-6 months of living expenses (depending on the number of dependents you have).

Other reasons include saving up for part or all of their large annual expenses in conjunction with the other short term asset classes available in Cube Wealth.

Liquid Funds At A Glance

Average Return



N/A - No fees or charges

Exit Load

For redemptions before 7 days

Minimum investment

₹ 1,000

Minimum to reinvest

₹ 100

Maximum investment


Investment duration

Short Term (1-24 months)



Benefits Of Liquid Funds

  • Low Risk
  • Predictable Returns
  • Relatively safer than other mutual funds
  • Better returns than bank a/c

Cons Of Liquid Funds

  • Full liquidity is in 3 business days*
  • Interest rate risk
  • Credit risk

About Cube's Mutual Fund Advisor

Wealth First was founded in 2000 and is an independent investment advisory firm focused on Treasury and Wealth solutions for corporates, family offices, provident funds, trusts and HNIs. They have a track record that is 50% higher than NIFTY over the last decade.

  • AUM: ₹7,000 crores
  • Clients: 3,000+

How To Invest In Liquid Funds Using Cube Wealth?

The Cube Wealth app helps you access a curated list of the best liquid funds handpicked by Wealth First. You invest what you can as often as you can until you reach your short term objective.

There are two ways you can invest in liquid funds using Cube Wealth:

  1. Lump-sum

    A lump-sum generally means a large sum of money invested in one go. Cube Wealth allows you to invest one-time as low as ₹1,000 in liquid funds with no maximum cap on your investment.
  2. Systematic Investment Plan (SIP)

    In a Systematic Investment Plan (SIP), you invest a small amount of money over a fixed period of time, usually every month. The Cube Wealth app allows you to start a liquid fund SIP in two ways:

  • QuickSIP - Take a risk quiz; Get curated liquid fund recommendations; Start a liquid fund SIP for as low as ₹1,000

  • SuperSIP - Unique to Cube Wealth; Start your liquid fund SIP; Adjust your SIP date; Increase or decrease your SIP amount

    Liquid funds are known for their high liquidity but at times, it may take 3 business days for redemption. But Cube has you covered! Meet Cube ATM.

What's Cube ATM?

If you invest in the Nippon Liquid Fund using Cube Wealth, you can withdraw up to ₹50,000 or 90% (whichever is lower) instantly using the Cube ATM feature.

Top Liquid Funds Currently Being Recommended By Wealth First

Liquid Fund Name

3-Year Returns

5-Year Returns

Nippon India Liquid Fund



Mirae Asset Cash Management Fund



Axis Liquid Fund



Kotak Liquid Fund



Canara Robeco Liquid Fund



*Note: Facts & figures are as of 29-01-2021. While we update our blogs regularly, download the Cube Wealth app for the latest information on liquid funds.

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