Will the BSL Cash Plus returns be comparable to bank FD

You choice of BSL Cash Plus Fund is fine. It is one of the top performing funds in its category and suitable for creating a contingency or emergency fund. You may go ahead and starting investing through monthly SIP mode as planned by you.

Please note that returns of liquid funds are often compared with returns of bank savings account and it is found that liquid funds provided superior return over bank savings account.

However, comparing the returns of liquid funds with that of bank FD would not be correct as Bank FD rates are dependent on fixed tenure for which you are depositing the fixed deposits. But liquid funds are open ended funds and it can be used like a bank account. In your case, you can invest through SIP in a liquid fund for 3 years and after that can withdraw any amount anytime you wish.

However in the recent past liquid fund returns have almost been at par with Bank FD rates of 12 - 24 months. Please check the returns here https://www.advisorkhoj.com/mutual-funds... But you should not use that as a benchmark for future returns.

Therefore, to sum up, if you want to create a contingency fund by investing in liquid funds, it is fine but the returns may not be superior than bank FD rates as mentioned earlier.

Hope the above helps : )