Widely read:
Previously, your suggestive criteria for selecting liquid funds were more focused on expense ratios. Now, following the Franklin debacle, how should one select liquid funds? Also, kindly suggest a few liquid funds.
- Aashish
Earlier, we lived a simple life. Incidents like those that we saw after the blow-up of IL&FS were not seen before. Things have changed now and if the fund industry faces any problems, there is a chance that the risk may spread in liquid funds as well. Therefore, the framework for selecting debt funds have also changed and thus, I would want to modify my advice here.
Do check the expense ratios of liquid funds but first, analyse the credit quality of the fund. When it comes to a few qualitative liquid funds, then Axis Liquid, IDFC Cash and HDFC Liquid Fund are some good options.
This article was originally published on May 25, 2020.
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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