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A Low Cost Fund

It's tough to beat the economy of Canliquid Retail. The fund had been one of the least expensive funds in the category-it charges just 0.26 per cent as against the category average expense ratio of 0.62 per cent

This 36 basis points difference may look minor, but actually that's what differentiates a good cash fund from a great one.

Canliquid Retail has never disappointed its investors-since launch in early 2002, the fund has underperformed the category in just one quarter, that too during its early life. The fund started with a higher average maturity of 100 to 150 days and benefited from the declining interest rates in 2002 and 2003. However, since April 2003, it has mostly kept its average maturity between 50 and 80 days and occasionally crossed 90-day mark.

Initially, Canliquid Retail portfolios were dominated by AAA papers. But since early 2003, the fund shifted focus to cash and money market instruments and has also taken some aggressive calls on AA and below rated papers. For example, average allocation to them were nearly 12 per cent in 2003. However, witnessing volatility in the debt market, it cut the exposure and brought it down to 2.76 per cent in January 2005. Canliquid Retail is one of the better options available.