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Liquid Mutual Funds: How To Choose?

Updated on September 27, 2026 , 3564 views

Liquid Mutual Funds are essentially money market (debt) funds that invest in small tenure money market instruments including treasury bills, term deposits, certificate of deposits, commercial papers etc. Generally, liquid Mutual Funds are options to invest your money for small durations. The securities that are part of Liquid Funds have a maturity of fewer than 91 days. Liquid funds have no lock-in period so the assets invested are not bound for long, thus keep your money available. Liquid fund returns are volatile as they are dependent on the fund performance in the financial market. Selecting the best liquid fund is a difficult task, however, one can use certain parameters to judge them.

The basic parameters that can be used to select Liquid Mutual Funds are as follows:

  • Returns or past track record
  • Portfolio & Maturity Profile
  • Liquidity & Size of Fund
  • Performance Rating by a rating agency

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Fund Selection Methodology used to find 50 funds

  • Category: Debt
  • Sub-category: Liquid%20Fund
  • AUM Range: 100 to 100000 Cr
  • Sorted On : 1-year return (high to low)
  • Tags: fcpro
  • No Of Funds: 50

1. Liquid Fund Returns

Looking at returns at various liquid funds:

FundNAVNet Assets (Cr)1 MO (%)3 MO (%)6 MO (%)1 YR (%)2025 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
IDBI Liquid Fund Growth ₹2,454.04
↑ 0.35
₹5030.51.73.46.6 6.66%1M 7D1M 10D
Axis Liquid Fund Growth ₹3,139.58
↑ 0.64
₹63,3430.51.63.46.56.66.37%1M 12D1M 12D
BOI AXA Liquid Fund Growth ₹3,247.16
↑ 0.78
₹1,8250.51.63.46.56.66.26%1M 13D1M 13D
Edelweiss Liquid Fund Growth ₹3,605.34
↑ 0.81
₹13,2720.51.63.46.56.56.26%1M 8D1M 8D
DSP Liquidity Fund Growth ₹4,024.08
↑ 0.84
₹29,1720.51.63.46.46.56.38%1M 13D
Invesco India Liquid Fund Growth ₹3,873.77
↑ 0.81
₹20,7480.51.63.46.46.56.32%1M 11D1M 11D
UTI Liquid Cash Plan Growth ₹462.325
↑ 0.10
₹29,2180.51.63.46.46.56.36%1M 6D1M 6D
PGIM India Insta Cash Fund Growth ₹366.881
↑ 0.08
₹1,0310.51.63.46.46.56.15%1M 10D1M 10D
Aditya Birla Sun Life Liquid Fund Growth ₹454.097
↑ 0.10
₹69,8300.51.63.46.46.56.56%1M 10D1M 10D
Mahindra Liquid Fund Growth ₹1,833.77
↑ 0.39
₹1,3920.51.63.46.46.56.47%1M 16D1M 20D
Indiabulls Liquid Fund Growth ₹2,724.83
↑ 0.64
₹3810.51.63.46.46.66.4%1M 18D1M 18D
Nippon India Liquid Fund  Growth ₹6,875.55
↑ 1.49
₹43,1250.51.63.46.46.56.44%1M 10D1M 13D
HDFC Liquid Fund Growth ₹5,526.89
↑ 1.05
₹71,3230.51.63.46.46.56.23%1M 3D1M 5D
LIC MF Liquid Fund Growth ₹5,091.88
↑ 1.07
₹17,4840.51.63.46.46.46.36%1M 10D1M 10D
Canara Robeco Liquid Growth ₹3,390.78
↑ 0.68
₹6,7830.51.63.46.46.56.38%2M 2D2M 6D
Tata Liquid Fund Growth ₹4,436.71
↑ 0.88
₹32,3700.51.63.46.46.56.41%1M 13D1M 13D
SBI Liquid Fund Growth ₹4,402.23
↑ 0.82
₹92,1920.51.63.46.46.46.47%1M 13D1M 17D
ICICI Prudential Liquid Fund Growth ₹416.914
↑ 0.09
₹62,7980.51.63.46.46.56.18%1M 6D1M 9D
Baroda Pioneer Liquid Fund Growth ₹3,237.35
↑ 0.66
₹13,1940.51.63.46.46.46.31%1M 8D1M 9D
Kotak Liquid Fund Growth ₹5,692.21
↑ 1.22
₹49,0730.51.63.46.46.56.4%1M 10D1M 10D
Bandhan Cash Fund Growth ₹3,400.01
↑ 0.68
₹22,2140.51.53.46.36.46.32%1M 10D1M 10D
Mirae Asset Cash Management Fund Growth ₹2,952.15
↑ 0.64
₹17,3590.51.63.36.36.56.35%1M 13D1M 15D
JM Liquid Fund Growth ₹76.7806
↑ 0.02
₹1,7430.51.63.36.36.46.12%1M 8D1M 11D
IIFL Liquid Fund Growth ₹2,163.37
↑ 0.36
₹6290.51.53.26.26.36.18%1M 13D1M 13D
Sundaram Money Fund Growth ₹44.1929
↑ 0.00
₹3,1440.30.81.73.3 3.5%1M 2D1M 2D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 28 Jul 23

Research Highlights & Commentary of 25 Funds showcased

CommentaryIDBI Liquid FundAxis Liquid FundBOI AXA Liquid FundEdelweiss Liquid FundDSP Liquidity FundInvesco India Liquid FundUTI Liquid Cash Plan PGIM India Insta Cash FundAditya Birla Sun Life Liquid FundMahindra Liquid FundIndiabulls Liquid FundNippon India Liquid Fund HDFC Liquid Fund LIC MF Liquid FundCanara Robeco LiquidTata Liquid FundSBI Liquid FundICICI Prudential Liquid FundBaroda Pioneer Liquid FundKotak Liquid FundBandhan Cash FundMirae Asset Cash Management FundJM Liquid FundIIFL Liquid FundSundaram Money Fund
Point 1Bottom quartile AUM (₹503 Cr).Top quartile AUM (₹63,343 Cr).Bottom quartile AUM (₹1,825 Cr).Lower mid AUM (₹13,272 Cr).Upper mid AUM (₹29,172 Cr).Upper mid AUM (₹20,748 Cr).Upper mid AUM (₹29,218 Cr).Bottom quartile AUM (₹1,031 Cr).Top quartile AUM (₹69,830 Cr).Bottom quartile AUM (₹1,392 Cr).Bottom quartile AUM (₹381 Cr).Upper mid AUM (₹43,125 Cr).Top quartile AUM (₹71,323 Cr).Lower mid AUM (₹17,484 Cr).Lower mid AUM (₹6,783 Cr).Upper mid AUM (₹32,370 Cr).Highest AUM (₹92,192 Cr).Top quartile AUM (₹62,798 Cr).Lower mid AUM (₹13,194 Cr).Top quartile AUM (₹49,073 Cr).Upper mid AUM (₹22,214 Cr).Lower mid AUM (₹17,359 Cr).Bottom quartile AUM (₹1,743 Cr).Bottom quartile AUM (₹629 Cr).Lower mid AUM (₹3,144 Cr).
Point 2Established history (16+ yrs).Established history (16+ yrs).Established history (18+ yrs).Established history (19+ yrs).Established history (20+ yrs).Established history (19+ yrs).Established history (22+ yrs).Established history (19+ yrs).Established history (22+ yrs).Established history (10+ yrs).Established history (14+ yrs).Established history (22+ yrs).Established history (25+ yrs).Established history (24+ yrs).Established history (18+ yrs).Established history (22+ yrs).Established history (19+ yrs).Established history (20+ yrs).Established history (17+ yrs).Established history (22+ yrs).Established history (18+ yrs).Established history (17+ yrs).Oldest track record among peers (28 yrs).Established history (12+ yrs).Established history (20+ yrs).
Point 3Rating: 3★ (lower mid).Rating: 4★ (upper mid).Rating: 3★ (bottom quartile).Rating: 2★ (bottom quartile).Rating: 3★ (lower mid).Rating: 4★ (top quartile).Rating: 3★ (upper mid).Rating: 5★ (top quartile).Rating: 4★ (top quartile).Not Rated.Top rated.Rating: 4★ (upper mid).Rating: 3★ (upper mid).Rating: 3★ (lower mid).Rating: 3★ (lower mid).Rating: 4★ (upper mid).Rating: 3★ (lower mid).Rating: 4★ (upper mid).Rating: 4★ (top quartile).Rating: 3★ (bottom quartile).Rating: 3★ (lower mid).Rating: 2★ (bottom quartile).Rating: 5★ (top quartile).Not Rated.Rating: 3★ (bottom quartile).
Point 4Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.
Point 51Y return: 6.55% (top quartile).1Y return: 6.48% (top quartile).1Y return: 6.46% (top quartile).1Y return: 6.46% (top quartile).1Y return: 6.44% (top quartile).1Y return: 6.43% (top quartile).1Y return: 6.42% (upper mid).1Y return: 6.42% (upper mid).1Y return: 6.42% (upper mid).1Y return: 6.42% (upper mid).1Y return: 6.40% (upper mid).1Y return: 6.40% (upper mid).1Y return: 6.39% (lower mid).1Y return: 6.39% (lower mid).1Y return: 6.39% (lower mid).1Y return: 6.38% (lower mid).1Y return: 6.38% (lower mid).1Y return: 6.36% (lower mid).1Y return: 6.35% (bottom quartile).1Y return: 6.35% (bottom quartile).1Y return: 6.32% (bottom quartile).1Y return: 6.31% (bottom quartile).1Y return: 6.29% (bottom quartile).1Y return: 6.15% (bottom quartile).1Y return: 3.29% (bottom quartile).
Point 61M return: 0.53% (top quartile).1M return: 0.49% (top quartile).1M return: 0.51% (top quartile).1M return: 0.49% (upper mid).1M return: 0.49% (lower mid).1M return: 0.50% (top quartile).1M return: 0.49% (upper mid).1M return: 0.49% (upper mid).1M return: 0.49% (lower mid).1M return: 0.50% (top quartile).1M return: 0.49% (upper mid).1M return: 0.49% (upper mid).1M return: 0.49% (upper mid).1M return: 0.48% (bottom quartile).1M return: 0.48% (bottom quartile).1M return: 0.48% (lower mid).1M return: 0.48% (bottom quartile).1M return: 0.48% (bottom quartile).1M return: 0.49% (lower mid).1M return: 0.48% (bottom quartile).1M return: 0.47% (bottom quartile).1M return: 0.49% (lower mid).1M return: 0.48% (lower mid).1M return: 0.51% (top quartile).1M return: 0.29% (bottom quartile).
Point 7Sharpe: 0.20 (bottom quartile).Sharpe: 3.01 (top quartile).Sharpe: 3.25 (top quartile).Sharpe: 2.92 (upper mid).Sharpe: 2.94 (top quartile).Sharpe: 2.85 (upper mid).Sharpe: 2.97 (top quartile).Sharpe: 2.91 (upper mid).Sharpe: 2.80 (lower mid).Sharpe: 2.86 (upper mid).Sharpe: 2.97 (top quartile).Sharpe: 2.71 (lower mid).Sharpe: 2.75 (lower mid).Sharpe: 2.74 (lower mid).Sharpe: 2.81 (upper mid).Sharpe: 2.98 (top quartile).Sharpe: 2.68 (bottom quartile).Sharpe: 2.76 (lower mid).Sharpe: 2.88 (upper mid).Sharpe: 2.62 (bottom quartile).Sharpe: 2.54 (bottom quartile).Sharpe: 2.74 (lower mid).Sharpe: 2.50 (bottom quartile).Sharpe: 1.97 (bottom quartile).Sharpe: -3.87 (bottom quartile).
Point 8Information ratio: -5.96 (bottom quartile).Information ratio: 0.00 (lower mid).Information ratio: 2.38 (top quartile).Information ratio: 0.00 (upper mid).Information ratio: 0.00 (lower mid).Information ratio: 0.00 (lower mid).Information ratio: 0.00 (bottom quartile).Information ratio: 1.16 (top quartile).Information ratio: 0.00 (upper mid).Information ratio: 0.00 (upper mid).Information ratio: 1.36 (top quartile).Information ratio: 0.00 (upper mid).Information ratio: 1.00 (top quartile).Information ratio: 0.00 (lower mid).Information ratio: 1.43 (top quartile).Information ratio: 0.00 (lower mid).Information ratio: 0.00 (lower mid).Information ratio: 1.11 (top quartile).Information ratio: 0.65 (upper mid).Information ratio: 0.00 (bottom quartile).Information ratio: 0.00 (bottom quartile).Information ratio: 0.00 (bottom quartile).Information ratio: 0.27 (upper mid).Information ratio: -1.06 (bottom quartile).Information ratio: 0.00 (bottom quartile).
Point 9Yield to maturity (debt): 6.66% (top quartile).Yield to maturity (debt): 6.37% (upper mid).Yield to maturity (debt): 6.26% (lower mid).Yield to maturity (debt): 6.26% (bottom quartile).Yield to maturity (debt): 6.38% (upper mid).Yield to maturity (debt): 6.32% (lower mid).Yield to maturity (debt): 6.36% (lower mid).Yield to maturity (debt): 6.15% (bottom quartile).Yield to maturity (debt): 6.56% (top quartile).Yield to maturity (debt): 6.47% (top quartile).Yield to maturity (debt): 6.40% (upper mid).Yield to maturity (debt): 6.44% (top quartile).Yield to maturity (debt): 6.23% (bottom quartile).Yield to maturity (debt): 6.36% (upper mid).Yield to maturity (debt): 6.38% (upper mid).Yield to maturity (debt): 6.41% (top quartile).Yield to maturity (debt): 6.47% (top quartile).Yield to maturity (debt): 6.18% (bottom quartile).Yield to maturity (debt): 6.31% (lower mid).Yield to maturity (debt): 6.40% (upper mid).Yield to maturity (debt): 6.32% (lower mid).Yield to maturity (debt): 6.35% (lower mid).Yield to maturity (debt): 6.12% (bottom quartile).Yield to maturity (debt): 6.18% (bottom quartile).Yield to maturity (debt): 3.50% (bottom quartile).
Point 10Modified duration: 0.10 yrs (top quartile).Modified duration: 0.12 yrs (lower mid).Modified duration: 0.12 yrs (bottom quartile).Modified duration: 0.11 yrs (upper mid).Modified duration: 0.12 yrs (bottom quartile).Modified duration: 0.12 yrs (lower mid).Modified duration: 0.10 yrs (top quartile).Modified duration: 0.11 yrs (upper mid).Modified duration: 0.11 yrs (upper mid).Modified duration: 0.13 yrs (bottom quartile).Modified duration: 0.13 yrs (bottom quartile).Modified duration: 0.11 yrs (lower mid).Modified duration: 0.09 yrs (top quartile).Modified duration: 0.11 yrs (upper mid).Modified duration: 0.17 yrs (bottom quartile).Modified duration: 0.12 yrs (bottom quartile).Modified duration: 0.12 yrs (lower mid).Modified duration: 0.10 yrs (top quartile).Modified duration: 0.11 yrs (upper mid).Modified duration: 0.11 yrs (upper mid).Modified duration: 0.11 yrs (lower mid).Modified duration: 0.12 yrs (lower mid).Modified duration: 0.11 yrs (top quartile).Modified duration: 0.12 yrs (bottom quartile).Modified duration: 0.09 yrs (top quartile).

IDBI Liquid Fund

  • Bottom quartile AUM (₹503 Cr).
  • Established history (16+ yrs).
  • Rating: 3★ (lower mid).
  • Risk profile: Low.
  • 1Y return: 6.55% (top quartile).
  • 1M return: 0.53% (top quartile).
  • Sharpe: 0.20 (bottom quartile).
  • Information ratio: -5.96 (bottom quartile).
  • Yield to maturity (debt): 6.66% (top quartile).
  • Modified duration: 0.10 yrs (top quartile).

Axis Liquid Fund

  • Top quartile AUM (₹63,343 Cr).
  • Established history (16+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Low.
  • 1Y return: 6.48% (top quartile).
  • 1M return: 0.49% (top quartile).
  • Sharpe: 3.01 (top quartile).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 6.37% (upper mid).
  • Modified duration: 0.12 yrs (lower mid).

BOI AXA Liquid Fund

  • Bottom quartile AUM (₹1,825 Cr).
  • Established history (18+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 6.46% (top quartile).
  • 1M return: 0.51% (top quartile).
  • Sharpe: 3.25 (top quartile).
  • Information ratio: 2.38 (top quartile).
  • Yield to maturity (debt): 6.26% (lower mid).
  • Modified duration: 0.12 yrs (bottom quartile).

Edelweiss Liquid Fund

  • Lower mid AUM (₹13,272 Cr).
  • Established history (19+ yrs).
  • Rating: 2★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 6.46% (top quartile).
  • 1M return: 0.49% (upper mid).
  • Sharpe: 2.92 (upper mid).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 6.26% (bottom quartile).
  • Modified duration: 0.11 yrs (upper mid).

DSP Liquidity Fund

  • Upper mid AUM (₹29,172 Cr).
  • Established history (20+ yrs).
  • Rating: 3★ (lower mid).
  • Risk profile: Low.
  • 1Y return: 6.44% (top quartile).
  • 1M return: 0.49% (lower mid).
  • Sharpe: 2.94 (top quartile).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 6.38% (upper mid).
  • Modified duration: 0.12 yrs (bottom quartile).

Invesco India Liquid Fund

  • Upper mid AUM (₹20,748 Cr).
  • Established history (19+ yrs).
  • Rating: 4★ (top quartile).
  • Risk profile: Low.
  • 1Y return: 6.43% (top quartile).
  • 1M return: 0.50% (top quartile).
  • Sharpe: 2.85 (upper mid).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 6.32% (lower mid).
  • Modified duration: 0.12 yrs (lower mid).

UTI Liquid Cash Plan

  • Upper mid AUM (₹29,218 Cr).
  • Established history (22+ yrs).
  • Rating: 3★ (upper mid).
  • Risk profile: Low.
  • 1Y return: 6.42% (upper mid).
  • 1M return: 0.49% (upper mid).
  • Sharpe: 2.97 (top quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.36% (lower mid).
  • Modified duration: 0.10 yrs (top quartile).

PGIM India Insta Cash Fund

  • Bottom quartile AUM (₹1,031 Cr).
  • Established history (19+ yrs).
  • Rating: 5★ (top quartile).
  • Risk profile: Low.
  • 1Y return: 6.42% (upper mid).
  • 1M return: 0.49% (upper mid).
  • Sharpe: 2.91 (upper mid).
  • Information ratio: 1.16 (top quartile).
  • Yield to maturity (debt): 6.15% (bottom quartile).
  • Modified duration: 0.11 yrs (upper mid).

Aditya Birla Sun Life Liquid Fund

  • Top quartile AUM (₹69,830 Cr).
  • Established history (22+ yrs).
  • Rating: 4★ (top quartile).
  • Risk profile: Low.
  • 1Y return: 6.42% (upper mid).
  • 1M return: 0.49% (lower mid).
  • Sharpe: 2.80 (lower mid).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 6.56% (top quartile).
  • Modified duration: 0.11 yrs (upper mid).

Mahindra Liquid Fund

  • Bottom quartile AUM (₹1,392 Cr).
  • Established history (10+ yrs).
  • Not Rated.
  • Risk profile: Low.
  • 1Y return: 6.42% (upper mid).
  • 1M return: 0.50% (top quartile).
  • Sharpe: 2.86 (upper mid).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 6.47% (top quartile).
  • Modified duration: 0.13 yrs (bottom quartile).

Indiabulls Liquid Fund

  • Bottom quartile AUM (₹381 Cr).
  • Established history (14+ yrs).
  • Top rated.
  • Risk profile: Low.
  • 1Y return: 6.40% (upper mid).
  • 1M return: 0.49% (upper mid).
  • Sharpe: 2.97 (top quartile).
  • Information ratio: 1.36 (top quartile).
  • Yield to maturity (debt): 6.40% (upper mid).
  • Modified duration: 0.13 yrs (bottom quartile).

Nippon India Liquid Fund 

  • Upper mid AUM (₹43,125 Cr).
  • Established history (22+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Low.
  • 1Y return: 6.40% (upper mid).
  • 1M return: 0.49% (upper mid).
  • Sharpe: 2.71 (lower mid).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 6.44% (top quartile).
  • Modified duration: 0.11 yrs (lower mid).

HDFC Liquid Fund

  • Top quartile AUM (₹71,323 Cr).
  • Established history (25+ yrs).
  • Rating: 3★ (upper mid).
  • Risk profile: Low.
  • 1Y return: 6.39% (lower mid).
  • 1M return: 0.49% (upper mid).
  • Sharpe: 2.75 (lower mid).
  • Information ratio: 1.00 (top quartile).
  • Yield to maturity (debt): 6.23% (bottom quartile).
  • Modified duration: 0.09 yrs (top quartile).

LIC MF Liquid Fund

  • Lower mid AUM (₹17,484 Cr).
  • Established history (24+ yrs).
  • Rating: 3★ (lower mid).
  • Risk profile: Low.
  • 1Y return: 6.39% (lower mid).
  • 1M return: 0.48% (bottom quartile).
  • Sharpe: 2.74 (lower mid).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 6.36% (upper mid).
  • Modified duration: 0.11 yrs (upper mid).

Canara Robeco Liquid

  • Lower mid AUM (₹6,783 Cr).
  • Established history (18+ yrs).
  • Rating: 3★ (lower mid).
  • Risk profile: Low.
  • 1Y return: 6.39% (lower mid).
  • 1M return: 0.48% (bottom quartile).
  • Sharpe: 2.81 (upper mid).
  • Information ratio: 1.43 (top quartile).
  • Yield to maturity (debt): 6.38% (upper mid).
  • Modified duration: 0.17 yrs (bottom quartile).

Tata Liquid Fund

  • Upper mid AUM (₹32,370 Cr).
  • Established history (22+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Low.
  • 1Y return: 6.38% (lower mid).
  • 1M return: 0.48% (lower mid).
  • Sharpe: 2.98 (top quartile).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 6.41% (top quartile).
  • Modified duration: 0.12 yrs (bottom quartile).

SBI Liquid Fund

  • Highest AUM (₹92,192 Cr).
  • Established history (19+ yrs).
  • Rating: 3★ (lower mid).
  • Risk profile: Low.
  • 1Y return: 6.38% (lower mid).
  • 1M return: 0.48% (bottom quartile).
  • Sharpe: 2.68 (bottom quartile).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 6.47% (top quartile).
  • Modified duration: 0.12 yrs (lower mid).

ICICI Prudential Liquid Fund

  • Top quartile AUM (₹62,798 Cr).
  • Established history (20+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Low.
  • 1Y return: 6.36% (lower mid).
  • 1M return: 0.48% (bottom quartile).
  • Sharpe: 2.76 (lower mid).
  • Information ratio: 1.11 (top quartile).
  • Yield to maturity (debt): 6.18% (bottom quartile).
  • Modified duration: 0.10 yrs (top quartile).

Baroda Pioneer Liquid Fund

  • Lower mid AUM (₹13,194 Cr).
  • Established history (17+ yrs).
  • Rating: 4★ (top quartile).
  • Risk profile: Low.
  • 1Y return: 6.35% (bottom quartile).
  • 1M return: 0.49% (lower mid).
  • Sharpe: 2.88 (upper mid).
  • Information ratio: 0.65 (upper mid).
  • Yield to maturity (debt): 6.31% (lower mid).
  • Modified duration: 0.11 yrs (upper mid).

Kotak Liquid Fund

  • Top quartile AUM (₹49,073 Cr).
  • Established history (22+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 6.35% (bottom quartile).
  • 1M return: 0.48% (bottom quartile).
  • Sharpe: 2.62 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.40% (upper mid).
  • Modified duration: 0.11 yrs (upper mid).

Bandhan Cash Fund

  • Upper mid AUM (₹22,214 Cr).
  • Established history (18+ yrs).
  • Rating: 3★ (lower mid).
  • Risk profile: Low.
  • 1Y return: 6.32% (bottom quartile).
  • 1M return: 0.47% (bottom quartile).
  • Sharpe: 2.54 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.32% (lower mid).
  • Modified duration: 0.11 yrs (lower mid).

Mirae Asset Cash Management Fund

  • Lower mid AUM (₹17,359 Cr).
  • Established history (17+ yrs).
  • Rating: 2★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 6.31% (bottom quartile).
  • 1M return: 0.49% (lower mid).
  • Sharpe: 2.74 (lower mid).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.35% (lower mid).
  • Modified duration: 0.12 yrs (lower mid).

JM Liquid Fund

  • Bottom quartile AUM (₹1,743 Cr).
  • Oldest track record among peers (28 yrs).
  • Rating: 5★ (top quartile).
  • Risk profile: Low.
  • 1Y return: 6.29% (bottom quartile).
  • 1M return: 0.48% (lower mid).
  • Sharpe: 2.50 (bottom quartile).
  • Information ratio: 0.27 (upper mid).
  • Yield to maturity (debt): 6.12% (bottom quartile).
  • Modified duration: 0.11 yrs (top quartile).

IIFL Liquid Fund

  • Bottom quartile AUM (₹629 Cr).
  • Established history (12+ yrs).
  • Not Rated.
  • Risk profile: Low.
  • 1Y return: 6.15% (bottom quartile).
  • 1M return: 0.51% (top quartile).
  • Sharpe: 1.97 (bottom quartile).
  • Information ratio: -1.06 (bottom quartile).
  • Yield to maturity (debt): 6.18% (bottom quartile).
  • Modified duration: 0.12 yrs (bottom quartile).

Sundaram Money Fund

  • Lower mid AUM (₹3,144 Cr).
  • Established history (20+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 3.29% (bottom quartile).
  • 1M return: 0.29% (bottom quartile).
  • Sharpe: -3.87 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 3.50% (bottom quartile).
  • Modified duration: 0.09 yrs (top quartile).
95% of the funds have a return between 7.25% to 7.75%. Hence liquid fund returns are in a very close range and even if one does not pick the “best liquid fund” they are not very far off from the highest or average return.

2. Portfolio & Maturity Profile Of Liquid Mutual Funds

The portfolio of liquid Mutual Funds contains securities that have a residual maturity of fewer than 91 days. While one can go and talk about credit quality (in simple words, how good are the securities in the portfolio) and try to differentiate portfolios, however, the real experience is that, unless there are real issues with the portfolio carrying some very bad quality securities, Liquid funds should not be an issue. Till date, there has been no known default in liquid fund portfolios and companies don’t usually default on the short maturity papers. However, having said the above the portfolio of the fund would give ideas on the yield of the fund and its subsequent performance. It’s often said “past performance is not an indicator of future performance” and for liquid mutual funds, if one were to try to do some projections, all they have to do is to look at the portfolio. The kind of securities (Commercial Papers (CPs), Certificate of Deposits(CDs) etc.), credit quality and the yield gives an idea of what the return profile of the fund could be. The portfolio quality is a good indicator of the performance of the liquid fund. The maturity of all liquid Mutual Funds is usually a couple of days and much less than 91 days. In most cases it is similar.

3. Liquidity & Size Of Fund

FundNAVNet Assets (Cr)1 MO (%)3 MO (%)6 MO (%)1 YR (%)2025 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
IDBI Liquid Fund Growth ₹2,454.04
↑ 0.35
₹5030.51.73.46.6 6.66%1M 7D1M 10D
Axis Liquid Fund Growth ₹3,139.58
↑ 0.64
₹63,3430.51.63.46.56.66.37%1M 12D1M 12D
BOI AXA Liquid Fund Growth ₹3,247.16
↑ 0.78
₹1,8250.51.63.46.56.66.26%1M 13D1M 13D
Edelweiss Liquid Fund Growth ₹3,605.34
↑ 0.81
₹13,2720.51.63.46.56.56.26%1M 8D1M 8D
DSP Liquidity Fund Growth ₹4,024.08
↑ 0.84
₹29,1720.51.63.46.46.56.38%1M 13D
Invesco India Liquid Fund Growth ₹3,873.77
↑ 0.81
₹20,7480.51.63.46.46.56.32%1M 11D1M 11D
UTI Liquid Cash Plan Growth ₹462.325
↑ 0.10
₹29,2180.51.63.46.46.56.36%1M 6D1M 6D
PGIM India Insta Cash Fund Growth ₹366.881
↑ 0.08
₹1,0310.51.63.46.46.56.15%1M 10D1M 10D
Aditya Birla Sun Life Liquid Fund Growth ₹454.097
↑ 0.10
₹69,8300.51.63.46.46.56.56%1M 10D1M 10D
Mahindra Liquid Fund Growth ₹1,833.77
↑ 0.39
₹1,3920.51.63.46.46.56.47%1M 16D1M 20D
Indiabulls Liquid Fund Growth ₹2,724.83
↑ 0.64
₹3810.51.63.46.46.66.4%1M 18D1M 18D
Nippon India Liquid Fund  Growth ₹6,875.55
↑ 1.49
₹43,1250.51.63.46.46.56.44%1M 10D1M 13D
HDFC Liquid Fund Growth ₹5,526.89
↑ 1.05
₹71,3230.51.63.46.46.56.23%1M 3D1M 5D
LIC MF Liquid Fund Growth ₹5,091.88
↑ 1.07
₹17,4840.51.63.46.46.46.36%1M 10D1M 10D
Canara Robeco Liquid Growth ₹3,390.78
↑ 0.68
₹6,7830.51.63.46.46.56.38%2M 2D2M 6D
Tata Liquid Fund Growth ₹4,436.71
↑ 0.88
₹32,3700.51.63.46.46.56.41%1M 13D1M 13D
SBI Liquid Fund Growth ₹4,402.23
↑ 0.82
₹92,1920.51.63.46.46.46.47%1M 13D1M 17D
ICICI Prudential Liquid Fund Growth ₹416.914
↑ 0.09
₹62,7980.51.63.46.46.56.18%1M 6D1M 9D
Baroda Pioneer Liquid Fund Growth ₹3,237.35
↑ 0.66
₹13,1940.51.63.46.46.46.31%1M 8D1M 9D
Kotak Liquid Fund Growth ₹5,692.21
↑ 1.22
₹49,0730.51.63.46.46.56.4%1M 10D1M 10D
Bandhan Cash Fund Growth ₹3,400.01
↑ 0.68
₹22,2140.51.53.46.36.46.32%1M 10D1M 10D
Mirae Asset Cash Management Fund Growth ₹2,952.15
↑ 0.64
₹17,3590.51.63.36.36.56.35%1M 13D1M 15D
JM Liquid Fund Growth ₹76.7806
↑ 0.02
₹1,7430.51.63.36.36.46.12%1M 8D1M 11D
IIFL Liquid Fund Growth ₹2,163.37
↑ 0.36
₹6290.51.53.26.26.36.18%1M 13D1M 13D
Sundaram Money Fund Growth ₹44.1929
↑ 0.00
₹3,1440.30.81.73.3 3.5%1M 2D1M 2D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 28 Jul 23

Research Highlights & Commentary of 25 Funds showcased

CommentaryIDBI Liquid FundAxis Liquid FundBOI AXA Liquid FundEdelweiss Liquid FundDSP Liquidity FundInvesco India Liquid FundUTI Liquid Cash Plan PGIM India Insta Cash FundAditya Birla Sun Life Liquid FundMahindra Liquid FundIndiabulls Liquid FundNippon India Liquid Fund HDFC Liquid Fund LIC MF Liquid FundCanara Robeco LiquidTata Liquid FundSBI Liquid FundICICI Prudential Liquid FundBaroda Pioneer Liquid FundKotak Liquid FundBandhan Cash FundMirae Asset Cash Management FundJM Liquid FundIIFL Liquid FundSundaram Money Fund
Point 1Bottom quartile AUM (₹503 Cr).Top quartile AUM (₹63,343 Cr).Bottom quartile AUM (₹1,825 Cr).Lower mid AUM (₹13,272 Cr).Upper mid AUM (₹29,172 Cr).Upper mid AUM (₹20,748 Cr).Upper mid AUM (₹29,218 Cr).Bottom quartile AUM (₹1,031 Cr).Top quartile AUM (₹69,830 Cr).Bottom quartile AUM (₹1,392 Cr).Bottom quartile AUM (₹381 Cr).Upper mid AUM (₹43,125 Cr).Top quartile AUM (₹71,323 Cr).Lower mid AUM (₹17,484 Cr).Lower mid AUM (₹6,783 Cr).Upper mid AUM (₹32,370 Cr).Highest AUM (₹92,192 Cr).Top quartile AUM (₹62,798 Cr).Lower mid AUM (₹13,194 Cr).Top quartile AUM (₹49,073 Cr).Upper mid AUM (₹22,214 Cr).Lower mid AUM (₹17,359 Cr).Bottom quartile AUM (₹1,743 Cr).Bottom quartile AUM (₹629 Cr).Lower mid AUM (₹3,144 Cr).
Point 2Established history (16+ yrs).Established history (16+ yrs).Established history (18+ yrs).Established history (19+ yrs).Established history (20+ yrs).Established history (19+ yrs).Established history (22+ yrs).Established history (19+ yrs).Established history (22+ yrs).Established history (10+ yrs).Established history (14+ yrs).Established history (22+ yrs).Established history (25+ yrs).Established history (24+ yrs).Established history (18+ yrs).Established history (22+ yrs).Established history (19+ yrs).Established history (20+ yrs).Established history (17+ yrs).Established history (22+ yrs).Established history (18+ yrs).Established history (17+ yrs).Oldest track record among peers (28 yrs).Established history (12+ yrs).Established history (20+ yrs).
Point 3Rating: 3★ (lower mid).Rating: 4★ (upper mid).Rating: 3★ (bottom quartile).Rating: 2★ (bottom quartile).Rating: 3★ (lower mid).Rating: 4★ (top quartile).Rating: 3★ (upper mid).Rating: 5★ (top quartile).Rating: 4★ (top quartile).Not Rated.Top rated.Rating: 4★ (upper mid).Rating: 3★ (upper mid).Rating: 3★ (lower mid).Rating: 3★ (lower mid).Rating: 4★ (upper mid).Rating: 3★ (lower mid).Rating: 4★ (upper mid).Rating: 4★ (top quartile).Rating: 3★ (bottom quartile).Rating: 3★ (lower mid).Rating: 2★ (bottom quartile).Rating: 5★ (top quartile).Not Rated.Rating: 3★ (bottom quartile).
Point 4Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.
Point 51Y return: 6.55% (top quartile).1Y return: 6.48% (top quartile).1Y return: 6.46% (top quartile).1Y return: 6.46% (top quartile).1Y return: 6.44% (top quartile).1Y return: 6.43% (top quartile).1Y return: 6.42% (upper mid).1Y return: 6.42% (upper mid).1Y return: 6.42% (upper mid).1Y return: 6.42% (upper mid).1Y return: 6.40% (upper mid).1Y return: 6.40% (upper mid).1Y return: 6.39% (lower mid).1Y return: 6.39% (lower mid).1Y return: 6.39% (lower mid).1Y return: 6.38% (lower mid).1Y return: 6.38% (lower mid).1Y return: 6.36% (lower mid).1Y return: 6.35% (bottom quartile).1Y return: 6.35% (bottom quartile).1Y return: 6.32% (bottom quartile).1Y return: 6.31% (bottom quartile).1Y return: 6.29% (bottom quartile).1Y return: 6.15% (bottom quartile).1Y return: 3.29% (bottom quartile).
Point 61M return: 0.53% (top quartile).1M return: 0.49% (top quartile).1M return: 0.51% (top quartile).1M return: 0.49% (upper mid).1M return: 0.49% (lower mid).1M return: 0.50% (top quartile).1M return: 0.49% (upper mid).1M return: 0.49% (upper mid).1M return: 0.49% (lower mid).1M return: 0.50% (top quartile).1M return: 0.49% (upper mid).1M return: 0.49% (upper mid).1M return: 0.49% (upper mid).1M return: 0.48% (bottom quartile).1M return: 0.48% (bottom quartile).1M return: 0.48% (lower mid).1M return: 0.48% (bottom quartile).1M return: 0.48% (bottom quartile).1M return: 0.49% (lower mid).1M return: 0.48% (bottom quartile).1M return: 0.47% (bottom quartile).1M return: 0.49% (lower mid).1M return: 0.48% (lower mid).1M return: 0.51% (top quartile).1M return: 0.29% (bottom quartile).
Point 7Sharpe: 0.20 (bottom quartile).Sharpe: 3.01 (top quartile).Sharpe: 3.25 (top quartile).Sharpe: 2.92 (upper mid).Sharpe: 2.94 (top quartile).Sharpe: 2.85 (upper mid).Sharpe: 2.97 (top quartile).Sharpe: 2.91 (upper mid).Sharpe: 2.80 (lower mid).Sharpe: 2.86 (upper mid).Sharpe: 2.97 (top quartile).Sharpe: 2.71 (lower mid).Sharpe: 2.75 (lower mid).Sharpe: 2.74 (lower mid).Sharpe: 2.81 (upper mid).Sharpe: 2.98 (top quartile).Sharpe: 2.68 (bottom quartile).Sharpe: 2.76 (lower mid).Sharpe: 2.88 (upper mid).Sharpe: 2.62 (bottom quartile).Sharpe: 2.54 (bottom quartile).Sharpe: 2.74 (lower mid).Sharpe: 2.50 (bottom quartile).Sharpe: 1.97 (bottom quartile).Sharpe: -3.87 (bottom quartile).
Point 8Information ratio: -5.96 (bottom quartile).Information ratio: 0.00 (lower mid).Information ratio: 2.38 (top quartile).Information ratio: 0.00 (upper mid).Information ratio: 0.00 (lower mid).Information ratio: 0.00 (lower mid).Information ratio: 0.00 (bottom quartile).Information ratio: 1.16 (top quartile).Information ratio: 0.00 (upper mid).Information ratio: 0.00 (upper mid).Information ratio: 1.36 (top quartile).Information ratio: 0.00 (upper mid).Information ratio: 1.00 (top quartile).Information ratio: 0.00 (lower mid).Information ratio: 1.43 (top quartile).Information ratio: 0.00 (lower mid).Information ratio: 0.00 (lower mid).Information ratio: 1.11 (top quartile).Information ratio: 0.65 (upper mid).Information ratio: 0.00 (bottom quartile).Information ratio: 0.00 (bottom quartile).Information ratio: 0.00 (bottom quartile).Information ratio: 0.27 (upper mid).Information ratio: -1.06 (bottom quartile).Information ratio: 0.00 (bottom quartile).
Point 9Yield to maturity (debt): 6.66% (top quartile).Yield to maturity (debt): 6.37% (upper mid).Yield to maturity (debt): 6.26% (lower mid).Yield to maturity (debt): 6.26% (bottom quartile).Yield to maturity (debt): 6.38% (upper mid).Yield to maturity (debt): 6.32% (lower mid).Yield to maturity (debt): 6.36% (lower mid).Yield to maturity (debt): 6.15% (bottom quartile).Yield to maturity (debt): 6.56% (top quartile).Yield to maturity (debt): 6.47% (top quartile).Yield to maturity (debt): 6.40% (upper mid).Yield to maturity (debt): 6.44% (top quartile).Yield to maturity (debt): 6.23% (bottom quartile).Yield to maturity (debt): 6.36% (upper mid).Yield to maturity (debt): 6.38% (upper mid).Yield to maturity (debt): 6.41% (top quartile).Yield to maturity (debt): 6.47% (top quartile).Yield to maturity (debt): 6.18% (bottom quartile).Yield to maturity (debt): 6.31% (lower mid).Yield to maturity (debt): 6.40% (upper mid).Yield to maturity (debt): 6.32% (lower mid).Yield to maturity (debt): 6.35% (lower mid).Yield to maturity (debt): 6.12% (bottom quartile).Yield to maturity (debt): 6.18% (bottom quartile).Yield to maturity (debt): 3.50% (bottom quartile).
Point 10Modified duration: 0.10 yrs (top quartile).Modified duration: 0.12 yrs (lower mid).Modified duration: 0.12 yrs (bottom quartile).Modified duration: 0.11 yrs (upper mid).Modified duration: 0.12 yrs (bottom quartile).Modified duration: 0.12 yrs (lower mid).Modified duration: 0.10 yrs (top quartile).Modified duration: 0.11 yrs (upper mid).Modified duration: 0.11 yrs (upper mid).Modified duration: 0.13 yrs (bottom quartile).Modified duration: 0.13 yrs (bottom quartile).Modified duration: 0.11 yrs (lower mid).Modified duration: 0.09 yrs (top quartile).Modified duration: 0.11 yrs (upper mid).Modified duration: 0.17 yrs (bottom quartile).Modified duration: 0.12 yrs (bottom quartile).Modified duration: 0.12 yrs (lower mid).Modified duration: 0.10 yrs (top quartile).Modified duration: 0.11 yrs (upper mid).Modified duration: 0.11 yrs (upper mid).Modified duration: 0.11 yrs (lower mid).Modified duration: 0.12 yrs (lower mid).Modified duration: 0.11 yrs (top quartile).Modified duration: 0.12 yrs (bottom quartile).Modified duration: 0.09 yrs (top quartile).

IDBI Liquid Fund

  • Bottom quartile AUM (₹503 Cr).
  • Established history (16+ yrs).
  • Rating: 3★ (lower mid).
  • Risk profile: Low.
  • 1Y return: 6.55% (top quartile).
  • 1M return: 0.53% (top quartile).
  • Sharpe: 0.20 (bottom quartile).
  • Information ratio: -5.96 (bottom quartile).
  • Yield to maturity (debt): 6.66% (top quartile).
  • Modified duration: 0.10 yrs (top quartile).

Axis Liquid Fund

  • Top quartile AUM (₹63,343 Cr).
  • Established history (16+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Low.
  • 1Y return: 6.48% (top quartile).
  • 1M return: 0.49% (top quartile).
  • Sharpe: 3.01 (top quartile).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 6.37% (upper mid).
  • Modified duration: 0.12 yrs (lower mid).

BOI AXA Liquid Fund

  • Bottom quartile AUM (₹1,825 Cr).
  • Established history (18+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 6.46% (top quartile).
  • 1M return: 0.51% (top quartile).
  • Sharpe: 3.25 (top quartile).
  • Information ratio: 2.38 (top quartile).
  • Yield to maturity (debt): 6.26% (lower mid).
  • Modified duration: 0.12 yrs (bottom quartile).

Edelweiss Liquid Fund

  • Lower mid AUM (₹13,272 Cr).
  • Established history (19+ yrs).
  • Rating: 2★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 6.46% (top quartile).
  • 1M return: 0.49% (upper mid).
  • Sharpe: 2.92 (upper mid).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 6.26% (bottom quartile).
  • Modified duration: 0.11 yrs (upper mid).

DSP Liquidity Fund

  • Upper mid AUM (₹29,172 Cr).
  • Established history (20+ yrs).
  • Rating: 3★ (lower mid).
  • Risk profile: Low.
  • 1Y return: 6.44% (top quartile).
  • 1M return: 0.49% (lower mid).
  • Sharpe: 2.94 (top quartile).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 6.38% (upper mid).
  • Modified duration: 0.12 yrs (bottom quartile).

Invesco India Liquid Fund

  • Upper mid AUM (₹20,748 Cr).
  • Established history (19+ yrs).
  • Rating: 4★ (top quartile).
  • Risk profile: Low.
  • 1Y return: 6.43% (top quartile).
  • 1M return: 0.50% (top quartile).
  • Sharpe: 2.85 (upper mid).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 6.32% (lower mid).
  • Modified duration: 0.12 yrs (lower mid).

UTI Liquid Cash Plan

  • Upper mid AUM (₹29,218 Cr).
  • Established history (22+ yrs).
  • Rating: 3★ (upper mid).
  • Risk profile: Low.
  • 1Y return: 6.42% (upper mid).
  • 1M return: 0.49% (upper mid).
  • Sharpe: 2.97 (top quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.36% (lower mid).
  • Modified duration: 0.10 yrs (top quartile).

PGIM India Insta Cash Fund

  • Bottom quartile AUM (₹1,031 Cr).
  • Established history (19+ yrs).
  • Rating: 5★ (top quartile).
  • Risk profile: Low.
  • 1Y return: 6.42% (upper mid).
  • 1M return: 0.49% (upper mid).
  • Sharpe: 2.91 (upper mid).
  • Information ratio: 1.16 (top quartile).
  • Yield to maturity (debt): 6.15% (bottom quartile).
  • Modified duration: 0.11 yrs (upper mid).

Aditya Birla Sun Life Liquid Fund

  • Top quartile AUM (₹69,830 Cr).
  • Established history (22+ yrs).
  • Rating: 4★ (top quartile).
  • Risk profile: Low.
  • 1Y return: 6.42% (upper mid).
  • 1M return: 0.49% (lower mid).
  • Sharpe: 2.80 (lower mid).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 6.56% (top quartile).
  • Modified duration: 0.11 yrs (upper mid).

Mahindra Liquid Fund

  • Bottom quartile AUM (₹1,392 Cr).
  • Established history (10+ yrs).
  • Not Rated.
  • Risk profile: Low.
  • 1Y return: 6.42% (upper mid).
  • 1M return: 0.50% (top quartile).
  • Sharpe: 2.86 (upper mid).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 6.47% (top quartile).
  • Modified duration: 0.13 yrs (bottom quartile).

Indiabulls Liquid Fund

  • Bottom quartile AUM (₹381 Cr).
  • Established history (14+ yrs).
  • Top rated.
  • Risk profile: Low.
  • 1Y return: 6.40% (upper mid).
  • 1M return: 0.49% (upper mid).
  • Sharpe: 2.97 (top quartile).
  • Information ratio: 1.36 (top quartile).
  • Yield to maturity (debt): 6.40% (upper mid).
  • Modified duration: 0.13 yrs (bottom quartile).

Nippon India Liquid Fund 

  • Upper mid AUM (₹43,125 Cr).
  • Established history (22+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Low.
  • 1Y return: 6.40% (upper mid).
  • 1M return: 0.49% (upper mid).
  • Sharpe: 2.71 (lower mid).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 6.44% (top quartile).
  • Modified duration: 0.11 yrs (lower mid).

HDFC Liquid Fund

  • Top quartile AUM (₹71,323 Cr).
  • Established history (25+ yrs).
  • Rating: 3★ (upper mid).
  • Risk profile: Low.
  • 1Y return: 6.39% (lower mid).
  • 1M return: 0.49% (upper mid).
  • Sharpe: 2.75 (lower mid).
  • Information ratio: 1.00 (top quartile).
  • Yield to maturity (debt): 6.23% (bottom quartile).
  • Modified duration: 0.09 yrs (top quartile).

LIC MF Liquid Fund

  • Lower mid AUM (₹17,484 Cr).
  • Established history (24+ yrs).
  • Rating: 3★ (lower mid).
  • Risk profile: Low.
  • 1Y return: 6.39% (lower mid).
  • 1M return: 0.48% (bottom quartile).
  • Sharpe: 2.74 (lower mid).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 6.36% (upper mid).
  • Modified duration: 0.11 yrs (upper mid).

Canara Robeco Liquid

  • Lower mid AUM (₹6,783 Cr).
  • Established history (18+ yrs).
  • Rating: 3★ (lower mid).
  • Risk profile: Low.
  • 1Y return: 6.39% (lower mid).
  • 1M return: 0.48% (bottom quartile).
  • Sharpe: 2.81 (upper mid).
  • Information ratio: 1.43 (top quartile).
  • Yield to maturity (debt): 6.38% (upper mid).
  • Modified duration: 0.17 yrs (bottom quartile).

Tata Liquid Fund

  • Upper mid AUM (₹32,370 Cr).
  • Established history (22+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Low.
  • 1Y return: 6.38% (lower mid).
  • 1M return: 0.48% (lower mid).
  • Sharpe: 2.98 (top quartile).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 6.41% (top quartile).
  • Modified duration: 0.12 yrs (bottom quartile).

SBI Liquid Fund

  • Highest AUM (₹92,192 Cr).
  • Established history (19+ yrs).
  • Rating: 3★ (lower mid).
  • Risk profile: Low.
  • 1Y return: 6.38% (lower mid).
  • 1M return: 0.48% (bottom quartile).
  • Sharpe: 2.68 (bottom quartile).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 6.47% (top quartile).
  • Modified duration: 0.12 yrs (lower mid).

ICICI Prudential Liquid Fund

  • Top quartile AUM (₹62,798 Cr).
  • Established history (20+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Low.
  • 1Y return: 6.36% (lower mid).
  • 1M return: 0.48% (bottom quartile).
  • Sharpe: 2.76 (lower mid).
  • Information ratio: 1.11 (top quartile).
  • Yield to maturity (debt): 6.18% (bottom quartile).
  • Modified duration: 0.10 yrs (top quartile).

Baroda Pioneer Liquid Fund

  • Lower mid AUM (₹13,194 Cr).
  • Established history (17+ yrs).
  • Rating: 4★ (top quartile).
  • Risk profile: Low.
  • 1Y return: 6.35% (bottom quartile).
  • 1M return: 0.49% (lower mid).
  • Sharpe: 2.88 (upper mid).
  • Information ratio: 0.65 (upper mid).
  • Yield to maturity (debt): 6.31% (lower mid).
  • Modified duration: 0.11 yrs (upper mid).

Kotak Liquid Fund

  • Top quartile AUM (₹49,073 Cr).
  • Established history (22+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 6.35% (bottom quartile).
  • 1M return: 0.48% (bottom quartile).
  • Sharpe: 2.62 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.40% (upper mid).
  • Modified duration: 0.11 yrs (upper mid).

Bandhan Cash Fund

  • Upper mid AUM (₹22,214 Cr).
  • Established history (18+ yrs).
  • Rating: 3★ (lower mid).
  • Risk profile: Low.
  • 1Y return: 6.32% (bottom quartile).
  • 1M return: 0.47% (bottom quartile).
  • Sharpe: 2.54 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.32% (lower mid).
  • Modified duration: 0.11 yrs (lower mid).

Mirae Asset Cash Management Fund

  • Lower mid AUM (₹17,359 Cr).
  • Established history (17+ yrs).
  • Rating: 2★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 6.31% (bottom quartile).
  • 1M return: 0.49% (lower mid).
  • Sharpe: 2.74 (lower mid).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.35% (lower mid).
  • Modified duration: 0.12 yrs (lower mid).

JM Liquid Fund

  • Bottom quartile AUM (₹1,743 Cr).
  • Oldest track record among peers (28 yrs).
  • Rating: 5★ (top quartile).
  • Risk profile: Low.
  • 1Y return: 6.29% (bottom quartile).
  • 1M return: 0.48% (lower mid).
  • Sharpe: 2.50 (bottom quartile).
  • Information ratio: 0.27 (upper mid).
  • Yield to maturity (debt): 6.12% (bottom quartile).
  • Modified duration: 0.11 yrs (top quartile).

IIFL Liquid Fund

  • Bottom quartile AUM (₹629 Cr).
  • Established history (12+ yrs).
  • Not Rated.
  • Risk profile: Low.
  • 1Y return: 6.15% (bottom quartile).
  • 1M return: 0.51% (top quartile).
  • Sharpe: 1.97 (bottom quartile).
  • Information ratio: -1.06 (bottom quartile).
  • Yield to maturity (debt): 6.18% (bottom quartile).
  • Modified duration: 0.12 yrs (bottom quartile).

Sundaram Money Fund

  • Lower mid AUM (₹3,144 Cr).
  • Established history (20+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 3.29% (bottom quartile).
  • 1M return: 0.29% (bottom quartile).
  • Sharpe: -3.87 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 3.50% (bottom quartile).
  • Modified duration: 0.09 yrs (top quartile).

The asset break-up between individuals and corporates is somewhat important to see if the liquid Mutual Funds can handle large redemptions. Large redemptions (at times 100s or 1000s of crores can also be taken place by corporates) can place pressures on the portfolio. At times of liquidity crisis, it would be difficult to find buyers for such a large quantity.

In fact, to ensure that the portfolio does not get impacted on price, liquid funds moved from mark to market to accrual-based Accounting post the Lehman crisis in 2008.

Also, the size of fund protects investors here on redemption pressures since SEBI has a rule that the highest individual holding in a scheme cannot exceed 20%. Hence, most schemes would be protected to an extent.

Top 5 Liquid Funds

Best performing liquid funds for 2026 are-

FundNAVNet Assets (Cr)1 MO (%)3 MO (%)6 MO (%)1 YR (%)2025 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
IDBI Liquid Fund Growth ₹2,454.04
↑ 0.35
₹5030.51.73.46.6 6.66%1M 7D1M 10D
Axis Liquid Fund Growth ₹3,139.58
↑ 0.64
₹63,3430.51.63.46.56.66.37%1M 12D1M 12D
BOI AXA Liquid Fund Growth ₹3,247.16
↑ 0.78
₹1,8250.51.63.46.56.66.26%1M 13D1M 13D
Edelweiss Liquid Fund Growth ₹3,605.34
↑ 0.81
₹13,2720.51.63.46.56.56.26%1M 8D1M 8D
DSP Liquidity Fund Growth ₹4,024.08
↑ 0.84
₹29,1720.51.63.46.46.56.38%1M 13D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 28 Jul 23

Research Highlights & Commentary of 5 Funds showcased

CommentaryIDBI Liquid FundAxis Liquid FundBOI AXA Liquid FundEdelweiss Liquid FundDSP Liquidity Fund
Point 1Bottom quartile AUM (₹503 Cr).Highest AUM (₹63,343 Cr).Bottom quartile AUM (₹1,825 Cr).Lower mid AUM (₹13,272 Cr).Upper mid AUM (₹29,172 Cr).
Point 2Established history (16+ yrs).Established history (16+ yrs).Established history (18+ yrs).Established history (19+ yrs).Oldest track record among peers (20 yrs).
Point 3Rating: 3★ (upper mid).Top rated.Rating: 3★ (lower mid).Rating: 2★ (bottom quartile).Rating: 3★ (bottom quartile).
Point 4Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.
Point 51Y return: 6.55% (top quartile).1Y return: 6.48% (upper mid).1Y return: 6.46% (lower mid).1Y return: 6.46% (bottom quartile).1Y return: 6.44% (bottom quartile).
Point 61M return: 0.53% (top quartile).1M return: 0.49% (lower mid).1M return: 0.51% (upper mid).1M return: 0.49% (bottom quartile).1M return: 0.49% (bottom quartile).
Point 7Sharpe: 0.20 (bottom quartile).Sharpe: 3.01 (upper mid).Sharpe: 3.25 (top quartile).Sharpe: 2.92 (bottom quartile).Sharpe: 2.94 (lower mid).
Point 8Information ratio: -5.96 (bottom quartile).Information ratio: 0.00 (upper mid).Information ratio: 2.38 (top quartile).Information ratio: 0.00 (lower mid).Information ratio: 0.00 (bottom quartile).
Point 9Yield to maturity (debt): 6.66% (top quartile).Yield to maturity (debt): 6.37% (lower mid).Yield to maturity (debt): 6.26% (bottom quartile).Yield to maturity (debt): 6.26% (bottom quartile).Yield to maturity (debt): 6.38% (upper mid).
Point 10Modified duration: 0.10 yrs (top quartile).Modified duration: 0.12 yrs (lower mid).Modified duration: 0.12 yrs (bottom quartile).Modified duration: 0.11 yrs (upper mid).Modified duration: 0.12 yrs (bottom quartile).

IDBI Liquid Fund

  • Bottom quartile AUM (₹503 Cr).
  • Established history (16+ yrs).
  • Rating: 3★ (upper mid).
  • Risk profile: Low.
  • 1Y return: 6.55% (top quartile).
  • 1M return: 0.53% (top quartile).
  • Sharpe: 0.20 (bottom quartile).
  • Information ratio: -5.96 (bottom quartile).
  • Yield to maturity (debt): 6.66% (top quartile).
  • Modified duration: 0.10 yrs (top quartile).

Axis Liquid Fund

  • Highest AUM (₹63,343 Cr).
  • Established history (16+ yrs).
  • Top rated.
  • Risk profile: Low.
  • 1Y return: 6.48% (upper mid).
  • 1M return: 0.49% (lower mid).
  • Sharpe: 3.01 (upper mid).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 6.37% (lower mid).
  • Modified duration: 0.12 yrs (lower mid).

BOI AXA Liquid Fund

  • Bottom quartile AUM (₹1,825 Cr).
  • Established history (18+ yrs).
  • Rating: 3★ (lower mid).
  • Risk profile: Low.
  • 1Y return: 6.46% (lower mid).
  • 1M return: 0.51% (upper mid).
  • Sharpe: 3.25 (top quartile).
  • Information ratio: 2.38 (top quartile).
  • Yield to maturity (debt): 6.26% (bottom quartile).
  • Modified duration: 0.12 yrs (bottom quartile).

Edelweiss Liquid Fund

  • Lower mid AUM (₹13,272 Cr).
  • Established history (19+ yrs).
  • Rating: 2★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 6.46% (bottom quartile).
  • 1M return: 0.49% (bottom quartile).
  • Sharpe: 2.92 (bottom quartile).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 6.26% (bottom quartile).
  • Modified duration: 0.11 yrs (upper mid).

DSP Liquidity Fund

  • Upper mid AUM (₹29,172 Cr).
  • Oldest track record among peers (20 yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 6.44% (bottom quartile).
  • 1M return: 0.49% (bottom quartile).
  • Sharpe: 2.94 (lower mid).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.38% (upper mid).
  • Modified duration: 0.12 yrs (bottom quartile).

4. Performance Rating Of Liquid Mutual Funds

Performance ratings unless taking into account the current portfolio and the future outlook won’t be able to differentiate tomorrow’s winners from the losers. So, while backward-looking ratings can give an idea about past performance, one can use these as a measure at best for de-selecting a fund.

Conclusion

While looking for liquid mutual funds one needs to look a number of factors and then choose the relevant fund.

Disclaimer: Please consult your advisor and do independent research before making any investment decision.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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