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Bank of India Liquid Fund Tops Liquid Mutual Fund Category in Three Year Returns
Bank of India Liquid Fund emerged as the best-performing liquid mutual fund over the last three years, delivering a CAGR return of 7.0 percent. The fund also generated a one-year CAGR return of 6.3 percent, outperforming several peers in the liquid fund category.
By Finblage Editorial Desk
1:10 pm
23 June 2026
Bank of India Liquid Fund has emerged as the top-performing scheme in the liquid mutual fund category based on three-year returns, according to data compiled by ACE MF as of June 22, 2026. The fund delivered a compound annual growth rate (CAGR) of 7.0 percent over the three-year period, making it the highest-returning liquid fund among its peers.
The scheme also generated a one-year CAGR return of 6.3 percent, reflecting consistent performance amid evolving interest rate conditions and money market dynamics. Liquid funds primarily invest in short-term debt and money market instruments, making them a preferred investment option for investors seeking liquidity, capital preservation, and relatively stable returns.
Following Bank of India Liquid Fund in the three-year performance rankings were Axis Liquid Fund and Franklin India Liquid Fund Super Institutional Plan. The rankings highlight the ability of select fund managers to generate competitive returns while maintaining the low-risk profile typically associated with liquid funds.
Liquid mutual funds have continued to attract investor interest as they offer an alternative to traditional savings accounts for parking short-term surplus funds. Their performance is influenced by factors such as interest rate movements, money market yields, and the quality of underlying debt instruments.
The latest performance data underscores the resilience of liquid funds in delivering stable returns despite fluctuations in the broader financial markets, reinforcing their role as an important component of short-term cash management strategies.
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