Capitalmind
Capitalmind
Actionable insights on equities, fixed-income, macros and personal finance Start 14-Days Free Trial
Actionable investing insights Get Free Trial
Personal Finance

Liquid Funds Rebound, Normalcy Begins To Return

For those of you who fear having to exit liquid funds due to their unusual fall in one day, note that yesterday bond markets were more stable, and therefore liquid funds made money.

Here’s a list of the same funds that crashed in value on Tuesday, to how they closed on wednesday. They’ve recovered between  0.02% and 0.09%.


Fund Jul-17 Jul-16 Change Prev Day Change
ING Liquid Fund 24.6738 24.6638 0.04% -0.34%
Quantum Liquid Fund 16.9457 16.9308 0.09% -0.28%
DWS Insta Cash Plus Fund 19.7696 19.7611 0.04% -0.26%
L&T Liquid Fund  1645.211 1644.7143 0.03% -0.26%
Kotak Liquid 2261.222 2260.2502 0.04% -0.25%
Principal Cash Management Fund  1165.895 1165.4774 0.04% -0.25%
Reliance Liquid Fund-Treasury Plan 2922.926 2921.1051 0.06% -0.24%
Birla Sun Life Cash Plus  192.2734 192.1657 0.06% -0.23%
JPMorgan India Liquid Fund 14.2078 14.2036 0.03% -0.23%
HDFC Cash Management Fund  25.0657 25.0565 0.04% -0.23%
Religare Invesco Liquid Fund 1649.653 1648.9476 0.04% -0.23%
Sundaram Money Fund  25.3007 25.2935 0.03% -0.21%
Baroda Pioneer Liquid Fund 1375.223 1374.7201 0.04% -0.21%
Taurus Liquid Fund 1559.093 1558.4587 0.04% -0.21%
DSP BlackRock Liquidity Fund 28.3163 28.3021 0.05% -0.21%
IDBI Liquid Fund 1287.485 1287.0052 0.04% -0.21%
UTI-  Liquid Fund-Cash Plan 1903.51 1903.0043 0.03% -0.20%
Axis Liquid Fund  1329.715 1329.2837 0.03% -0.19%
Tata Liquid Fund Plan A 2215.65 2215.0341 0.03% -0.18%
Pramerica Liquid Fund  999.9687 999.6694 0.03% -0.18%
Birla Sun Life Floating Rate 159.4973 159.4547 0.03% -0.18%
JM High Liquidity Fund 32.7202 32.7098 0.03% -0.18%
Canara Robeco Liquid-Regular Plan 1458.891 1458.4159 0.03% -0.18%
SBI Premier Liquid Fund 1886.969 1886.0524 0.05% -0.17%
ICICI Prudential Liquid  177.563 177.5085 0.03% -0.16%
IDFC  Cash Fund  1459.237 1458.8483 0.03% -0.16%
LIC NOMURA MF Liquid Fund 2175.595 2174.9464 0.03% -0.16%
HDFC Liquid Fund 23.6759 23.6685 0.03% -0.16%
BOI AXA Liquid Fund- Regular Plan 1380.926 1380.3935 0.04% -0.16%
Edelweiss Liquid  1184.117 1183.8301 0.02% -0.15%
MS Liquid Fund  1179.191 1178.8718 0.03% -0.15%
BNP Paribas Overnight Fund 18.4661 18.4607 0.03% -0.14%
Peerless Liquid Fund 12.5647 12.5597 0.04% -0.13%
Templeton India Cash Management Account 19.4173 19.4132 0.02% -0.13%
ICICI Prudential Money Market Fund 166.2499 166.1902 0.04% -0.12%
Daiwa Liquid Fund  1340.511 1340.0904 0.03% -0.07%
Escorts Liquid Plan 18.5827 18.5786 0.02% 0.02%
Mirae Asset Liquid Fund 1224.063 1223.7909 0.02% 0.02%

Today yields have softened further (Thursday) with T-Bills quoting at 8.7% (versus Tuesday’s 9.5%). We should see short term funds (liquid, ultra-short term and bond funds) rebound further.

The point is: Don’t run off in a panic. We’ll see the NAVs return to the pre-RBI announcement values within two weeks, at this rate. Unless, of course, there is more drama to come! (I’ll track this weekly)

  • PolicyParalysis says:

    What’s the strategy for Long term GILT/dynamic bond funds ? Stay or exit ?

    • Gold Bug says:

      The best performing debt funds seems to be those who have 100% holding in CBLO. Sundaram gilt, Religare gilt etc. If we go the Indonesian way in 1997/98 then only short term floating rate funds can give decent returns. Fresh investment in large debt fund is risky.

  • mangoman says:

    RBI panicked and rejected the bids for both sale & purchase of auctions in this week. When it signals monetary tightening for rates, it should have known that bond yields will increase. This is basic economics. I think they would have got some message from FM and FM would have got pressure from Indian Corporate Mafia.
    Finally I think these jokers will see the downgrade very soon. I hope that happens as early as next month. Basic economic says you raise interest rates to save domestic currency. But RBI, India’s celebrated institution which is reduced to a sorry joker off late, is trying a novel method even Ben Bernanke would be envy. If RBI ploy had worked then it is lesson for all the central bankers to learn.
    Already RBI officials made all the banks to close their short positions on Rupee/Dollar trade. Again when they say our aim to curb speculation on Rupee on RBI money, no fool will believe this. They should openly tell that we need to raise rates to save rupees. Otherwise allow Rupee to depreciate. dont be a comedy piece. People still look to RBI to save the country.