Carnelian Mutual Fund is launching the Carnelian Liquid Fund, an open-ended liquid fund run by Carnelian Investment Managers Private Limited. The new fund offer (NFO) runs from 12-10-2026 to 14-10-2026, as listed by Morningstar India.
The fund lends money for very short periods. Everything it holds matures within 91 days, about three months. It aims to earn steady returns while keeping your money easy to take out.
Because the fund is new, it has no performance record yet. What you can judge today is the structure, the cost and the people running it.
Carnelian Liquid Fund NFO details
Particulars | Details |
Fund name | |
Fund type | Open-ended liquid scheme |
Category | Debt scheme, liquid fund |
Nature of scheme | Active |
Benchmark | NIFTY Liquid Index A-I |
Fund managers | Deepak Malik, Viraj Parekh |
NFO opens | 12-10-2026 |
NFO closes | 14-10-2026 |
Allotment/reopening date | Not available |
Minimum investment | ₹500 and multiples of ₹1 |
Additional investment | ₹500 and multiples of ₹1 |
SIP amount | ₹500 and multiples of ₹1 |
NAV | ₹1,000 per unit during the NFO |
Indicative yield/YTM | Not available |
Stamp duty | 0.005% on purchases |
Entry load | Nil |
Exit load | 0.0070% on day 1, falling by 0.0005% each day to 0.0045% on day 6; nil from day 7 |
Plans and options | Regular and Direct; Growth and IDCW (daily or weekly reinvestment) |
Carnelian Mutual Fund AMC details
Particulars | Details |
AMC name | Carnelian Investment Managers Private Limited |
Assets under management | ₹19,200 crore to ₹20,600+ crore |
Website | |
Office address | 1211/1212, One Lodha Place, Senapati Bapat Marg, Lower Parel (West), Mumbai 400013 |
Contact number | 022 6575 2000 |
Source: AMFI India: New fund offer: Carnelian Liquid Fund
What has Carnelian Mutual Fund launched with Carnelian Liquid Fund?
A liquid fund is a debt fund that holds only very short-term paper. Here, every holding must mature within 91 days.
Expect treasury bills (short government IOUs), commercial paper and certificates of deposit (short loans to companies and banks), and repo or TREPS (overnight lending against government securities).
It is actively managed. The managers choose what to hold instead of copying an index. The goal is a fair return while your money stays easy to withdraw, though nothing is assured.
After the NFO you can buy or sell on any business day at that day’s NAV, the per-unit price. Redemption money is normally paid within three working days.
The fund does not plan to give loans, hold foreign securities, buy securitised debt or short sell.
How the Carnelian Liquid Fund strategy works
Step | What happens? |
1 | NFO money is collected from 12-10-2026 to 14-10-2026 at ₹1,000 a unit |
2 | Units are allotted and the first NAV is declared within five business days |
3 | The managers deploy the money in debt and money market papers maturing within 91 days, within 30 business days of allotment |
4 | The mix moves between bills, commercial paper, deposits and repo, based on interest rates and cash conditions |
5 | As papers mature, the money is placed again in fresh short-term papers |
6 | NAV is published every business day, and you redeem at that NAV |
Let’s understand through an example
Nikhil, a 34-year-old salaried professional in Pune, sets aside ₹3 lakh for a tax payment due in two months. He invests it in the NFO at ₹1,000 a unit and receives 300 units.
The managers lend that money out in papers of under 91 days. When the bill is due, Nikhil redeems. Since he stayed beyond seven days, no exit load applies, and the money reaches his bank within three working days.
Carnelian Liquid Fund portfolio allocation
This is a single asset class fund. All of it sits in debt and money market instruments. The scheme document sets these limits:
Instrument | Limit |
Debt and money market instruments, maturity up to 91 days | 0% to 100% |
Repo, TREPS on government securities and T-bills | Up to 35% of assets |
Repo in corporate debt (gross) | Up to 10% of net assets |
Credit default swaps (protection buying only) | Up to 10% |
Unlisted non-convertible debentures | Up to 10% of debt portfolio |
Unrated instruments | Up to 5% |
Units of other mutual fund schemes | Up to 5% |
Securities lending | Up to 20% |
Debt derivatives for hedging | Up to 100% |
Investment strategy of the Carnelian Liquid Fund
Security selection
The managers decide the mix using interest rates, inflation, market liquidity and their own views. Deepak Malik (CFA, over 25 years in the industry) and Viraj Parekh (chartered accountant) both joined the AMC on 01-03-2026.
Malik earlier worked in equity research at Edelweiss, Faering Capital and Axis Mutual Fund. Parekh was an equity research analyst at Carnelian Asset Management & Advisors from 2021 to 2026. The scheme document lists no other schemes for either. Our reading: their listed background is equity research, so this is a debt mandate without a debt record from them in the document.
Controls and liquidity
The managers can hedge with interest rate swaps and futures, which the document limits to hedging and portfolio balancing. If the portfolio drifts from its limits, the fund must rebalance within 30 days, or 30 business days for passive breaches.
Potential benefits of the Carnelian Liquid Fund
Potential benefit | Why does it matter? |
Short maturity cap | Holdings come due within 91 days, so cash keeps returning to the fund |
Easy access | No lock-in; redeem on any business day, with money in three working days |
Low entry amount | Start from ₹500, with no minimum balance to maintain |
Small, short exit load | The load applies only in the first six days and is nil from day 7 |
Systematic plans | SIP, STP and SWP options suit regular investing or regular withdrawals |
Key risks in the Carnelian Liquid Fund
Risk | What does it mean? |
Interest rate risk | Bond prices fall when interest rates rise. Short maturities keep this small, not absent |
Credit risk | A borrower may delay or miss a payment, which can reduce the NAV |
Liquidity risk | Some papers may be hard to sell quickly at a fair price |
Reinvestment risk | Maturing papers may be placed again at lower rates |
Counterparty risk | The other side of a repo or derivative deal may fail to deliver |
Derivative risk | Hedging contracts can lose value or not offset losses fully |
Who may consider the Carnelian Liquid Fund?
Investor type | Why it may fit |
Business owner holding cash for a payment | Money is needed in days or months, with no lock-in |
Salaried investor building an emergency buffer | Redemption proceeds in three working days |
Equity investor planning an STP | Cash can wait here before moving into equity in instalments |
Retiree funding a few months of expenses | SWP is available in the Growth option |
Who may not find this fund suitable?
Investor type | Why it may not fit |
Growth seeker | A liquid fund aims for steady income, not high growth |
Goal beyond one year | Longer goals usually need other categories |
Guaranteed return seeker | The document gives no assurance on returns or objective |
Track record seeker | There is no history, and the managers’ listed experience is equity research |
Carnelian Liquid Fund vs traditional options
Option | Risk | Return potential | Volatility | Liquidity | Horizon | Suitable investor |
Fixed deposit | Low | Fixed | None | Early exit penalty | 1 to 5 years | Safety seeker |
Debt mutual fund | Low to moderate | Moderate | Low | High | 1 to 3 years | Income seeker |
Hybrid fund | Moderate | Moderate to high | Moderate | High | 3 years plus | Balanced investor |
Equity mutual fund | High | High | High | High | 5 years plus | Growth seeker |
Carnelian Liquid Fund | Low to moderate | Moderate | Low | High | Days to months | Short-term cash holder |
Also read: Small savings interest rates for Oct to Dec 2026
Carnelian Liquid Fund Review by Zenith Finserve
In our view, this fund fits money you need within days to a few months, such as a tax bill, a business payment or cash waiting for an STP into equity. It does not fit a goal like a 2030 education fund, which needs growth.
Cost deserves a look. The scheme document allows a base expense ratio of up to 1.85% a year on daily net assets. That is a ceiling, not the actual charge, and the Direct Plan costs less. When returns in a category are narrow, even small costs matter.
Treat it as a cash holding place beside your other investments, not a growth engine. Once the first portfolio is published, check which borrowers it lends to before you invest.
How Zenith Finserve can help
At Zenith Finserve, we follow a process driven investment framework. We assess your goals, cash flows, risk profile, time horizon, existing investments, loans and tax situation before suggesting investments.
We align our investment suggestions with your financial objectives and review them periodically to keep them suitable as your circumstances change.
Similar NFOs on Zenith
- AlphaGrep Liquid Omni FOF: another liquid-focused NFO, built as a fund of funds rather than a direct scheme.
- JioBlackRock NFO: a launch from a newer fund house, for comparison with Carnelian’s debut.
New to NFOs? Read our guide to mutual funds in India and our explainer on bonds.
Carnelian Liquid Fund FAQs
What does the Carnelian Liquid Fund invest in?
Debt and money market instruments that mature within 91 days.
When does the Carnelian Liquid Fund NFO open and close?
It opens on 12-10-2026 and closes on 14-10-2026. The reopening date is not available.
What is the minimum investment?
₹500 and multiples of ₹1. Additional purchases and SIPs also start at ₹500.
Is the Carnelian Liquid Fund NFO good to invest in?
It depends on your goal. It suits short-term cash, but it has no track record yet.
Carnelian Liquid Fund review: what is the exit load?
0.0070% on day 1, falling to 0.0045% on day 6. Nil from day 7.
What is the NFO price?
₹1,000 per unit.
How fast can I get my money back?
Redemption proceeds are normally paid within three working days.
What is the expense ratio?
The maximum base expense ratio is 1.85% of daily net assets. Check the website for the actual figure.
Who manages the fund?
Deepak Malik and Viraj Parekh of Carnelian Investment Managers.
What plans and options are offered?
Regular and Direct plans, each with Growth and IDCW (daily or weekly reinvestment).
How is IDCW taxed?
It is taxed at your slab rate. Resident investors face 10% TDS on IDCW above ₹5,000.
