Investment Objective and Approach

The investment objective of Tata Liquid Fund Direct Plan Growth is to generate returns that are close to the prevailing short-term interest rates. The fund achieves this by investing in a portfolio of money market instruments, such as treasury bills, commercial papers, and certificates of deposit. The investment objective is to generate reasonable returns with high liquidity to the unitholders

The fund follows a conservative approach by focusing on:

- Investment in high-quality money market instruments with short maturity periods

- Active liquidity management to ensure instant redemption facility

- Effective credit risk management through investments in top-rated securities

- Maintaining portfolio maturity typically within 91 days as per liquid fund regulations

Tata Liquid Fund Direct Plan Growth is suitable for investors who need access to their money in the short term. The fund is also suitable for investors who are looking for a low-risk investment option.

Fund Managers

Amit Somani is the Current Fund Manager of Tata Liquid Fund Direct Growth fund. Amit Somani did his PGDBM (Finance) from Chetana Institute of Management and Research. He worked at Khandwala Securities, SPA Capital Services, Netscribes India and Fidelity Investments before joining TATA Mutual Fund as a Senior Fund Manager.

Mr.Somani is a B.Com, PGDBM and CFA. Prior to joining Tata Asset Management Ltd in 2010 he has worked with Fidelity bringing extensive experience in debt fund management and financial markets.

The fund also benefits from the broader fixed income team at Tata Asset Management, including senior fund managers like Mr. Mittal joined Tata Mutual Fund in 2014 as the Senior Fund Manager of Fixed Income. He manages an AuM of Rs. 4,102 invested in 18 schemes including Tata Dynamic Bond, Tata Income Fund, Tata Treasury Advantage, Tata Balanced Advantage Fund, etc.

About the Fund House (AMC)

Tata Asset Management Ltd. (TAML) is part of the Tata Group that manages Tata Mutual Fund. The company was established in 1994 and offers diverse investment options to investors based on their risk appetite, financial objectives, and income.

Key highlights of Tata Asset Management:

Company Foundation & Vision

According to the company, their business is based on the 3 most significant aspects – performance, service, and trust. Its vision is to deliver a better quality of life to their investors by securing their financial future.

Assets Under Management

While Tata Sons Ltd. holds 67.91% shares in TAML, 32.09% shares are held by Tata Investment Corporation Ltd. As of 31 March 2024, Tata Asset Management Ltd has an asset under management (AuM) of Rs. 147169.65 Crores.

Regulatory Compliance

Tata Asset Management Ltd. is registered as a mutual fund with SEBI under the registration code MF/023/95/9. The company registered itself as a portfolio manager in 14 September 2004 with the registration code INP000001058.

Awards & Recognition

CNBC TV 18 Mutual Fund Awards awarded the Tata Equity P/E Fund as the Best Value/Contra Fund. CNBC TV 18 Mutual Fund Awards also awarded the Tata Treasury Advantage Fund as the Best Low Duration Debt Fund.

Product Portfolio

Tata Asset Management Ltd. currently offers hybrid funds, equity funds, and fixed income funds.

Should I Invest in Tata Liquid Fund?

Tata Liquid Fund can be an excellent choice for specific investor categories and financial objectives. Here's a detailed analysis:

Who Should Consider This Fund

Conservative Investors: The fund is also suitable for investors who are looking for a low-risk investment option. With its focus on high-quality money market instruments, it offers capital preservation with modest returns.

Short-term Goals: Tata Liquid Fund Direct Plan Growth is suitable for investors who need access to their money in the short term. Perfect for parking emergency funds or saving for goals within 6-12 months.

Institutional Investors: The fund caters to both retail and institutional investors who prefer low-risk, high-liquidity investment options.

Performance Metrics

- The AUM of TATA Liquid Fund, is ₹22951.2 crore. (as per Angel One data)

- The expense ratio of TATA Liquid Fund is 0.2% The TATA Liquid Fund was launched on Jan 01 2013. The fund has delivered a CAGR of 6.9 since inception.

- Tata Liquid Fund Direct - Growth is rated 0 star with 5Y returns at 5.52%.

Investment Minimums

- The minimum SIP for TATA Liquid Fund is ₹500.

- Investors can begin their investment journey with a minimum SIP of ₹500 or a lumpsum investment of ₹5,000.

Considerations

The fund offers instant redemption facility and maintains high liquidity, making it suitable for investors prioritizing safety over high returns. However, The fund is not suitable for investors who are looking for high returns or who are willing to take on a lot of risk.

The fund's low expense ratio and strong AUM base indicate operational efficiency and investor confidence. Its consistent performance in the liquid fund category makes it a reliable option for conservative investors seeking better returns than traditional savings accounts while maintaining liquidity.

FAQs

What is today's NAV of Tata Liquid Fund?

The NAV changes daily based on market conditions. You can check the current NAV on the official Tata Mutual Fund website or through your investment platform for the most up-to-date information.

What is the AUM of Tata Liquid Fund?

The AUM of TATA Liquid Fund, is ₹22951.2 crore. The AUM is updated monthly by the fund house.

What is the expense ratio of Tata Liquid Fund?

The expense ratio of TATA Liquid Fund is 0.2%, which is competitive for liquid funds and helps maximize returns for investors.

What are the returns of Tata Liquid Fund since inception?

The fund has delivered a CAGR of 6.9 since inception. The fund was launched on January 1, 2013.

What is the minimum SIP amount to invest in Tata Liquid Fund?

The minimum SIP for TATA Liquid Fund is ₹500. This makes it accessible for small investors to start their investment journey.

How do I invest in Tata Liquid Fund?

You can invest through Allvest by logging into your account, selecting Tata Liquid Fund, choosing between SIP or lump sum, entering the amount, and completing the payment process.

How to start a SIP in Tata Liquid Fund?

Through Allvest, select 'Start SIP' option, enter your desired monthly amount (minimum ₹500), choose the SIP date, and set up payment authorization for automatic deductions.

How do I automate an SIP in Tata Liquid Fund?

After creating your SIP through Allvest, set up autopay by providing your bank details and completing the mandate registration for automatic monthly deductions.

How can I withdraw/redeem my investment in Tata Liquid Fund?

You can redeem your investment through Allvest by logging into your account, selecting the fund, choosing partial or full redemption, and the amount will be credited to your bank account typically within 1-2 working days.