Liquid and ultra-short duration funds: Still shining

Liquid and ultra-short duration funds have continued to quietly deliver solid returns over the past year, with gains hovering around 7 per cent. While this might not seem overly impressive at first glance, their high liquidity sets them apart, making these returns far superior to what savings accounts—arguably their closest competitor—offer. In fact, the current returns of these funds are higher than their long-term averages. Trailing returns (%) Category 1-year 10-year Liquid 7.41 6.38 Overnight 6.74 5.69