Any market linked instrument has a risk - welcome to the markets 
Having said that some liquid funds are better than others. I understand the panic post the Franklin incident, you needn’t be worried about everything but it pays to be cautious.
Stick to the biggest liquid funds with the most AUM. Look at the number of holdings in the fund and make sure they are diversified. Some of the bigger Liquid funds hold more than 200+ securities, as assuming that there’s a default which is rare, there’s no concentration risk. And keep monitoring the funds.
Read this to understand the risks