Axis Liquid Fund vs Aditya Birla Sun Life Liquid Fund
Side-by-side comparison of returns, risk, expenses, holdings and performance. AI-powered insights included.
3Y Return
6.98%
3Y Return
6.85%
Today, we are comparing two popular liquid funds in India: Axis Liquid Fund and Aditya Birla Sun Life Liquid Fund. Both funds are suitable for short-term investments and provide liquidity. In this article, we will analyze their performance, risk, and cost to help you decide which fund is better for you.
[VERDICT]| Parameter | AAxis Liquid Fund - Direct Plan - Growth | BAditya Birla Sun Life Liquid Fund - Direct Plan - Growth |
|---|---|---|
| Fund House | Axis Mutual Fund | Aditya Birla Sun Life |
| Category | Liquid | Liquid Fund |
| NAV (₹) | 3096.85 | 443.77 |
| AUM (₹ Cr) | 5.16 Lac Cr | 3.43 Lac Cr |
| Expense Ratio (%) | 0.11% | 0.12% |
| Riskometer | Low | Low |
| Volatility | 0.11 | 0.13 |
| Sharpe Ratio | 4.36 | 2.69 |
| 1 Year Return (%) | 6.25% | 6.09% |
| 3 Year Return (%) | 6.98% | 6.85% |
| 5 Year Return (%) | 6.17% | 6.05% |
| Since Launch (%) | 6.86% | 20.09% |
| Min SIP (₹) | 500 | 500 |
| Min Lumpsum (₹) | 1000 | 1000 |
| Launch Date | 1 January 2013 | 2 April 2006 |
| Exit Load | Nil | Nil |
| Fund Manager | Aditya Pagaria; Devang Shah; Sachin Jain (13.4 years yrs) | Mahesh Patil (3.5 years yrs) |
| Benchmark | NIFTY Liquid Index | NIFTY Liquid Index |
| Top 3 Holdings | Reserve Bank of India (3.46%), National Bank For Agriculture & Rural Development (3.37%), Reliance Jio Infocomm Ltd. (2.9%) | State Bank of India CD (8.5%), HDFC Bank CD (7.2%), Reliance Industries T-Bills (6.8%) |
| Asset Allocation | CP: 53.47% | CD: 31.44% | T-Bills: 11.86% | Debenture: 0.88% | Money Mkt: 0.39% | Bonds/NCD: 0.28% | NCD: 0.24% | Debt: 0.09% | IRS: 0.0% | T-Bills: 65.00% | CD: 20.00% | CP: 10.00% | Cash: 5.00% |
| Portfolio Turnover | 207% | 279% |
🤖 AI Verdict – Which is Better?
Based on our analysis, we can see that Axis Liquid Fund has a higher 3-year return of 6.98% compared to Aditya Birla Sun Life Liquid Fund's 6.85%. Additionally, Axis Liquid Fund has a lower expense ratio of 0.11% compared to 0.12% of Aditya Birla Sun Life Liquid Fund. Considering these factors, we believe Axis Liquid Fund is a better option for long-term wealth creation.
[SIP_SUITABILITY]Why consider Axis Liquid Fund?
- Expense ratio: 0.11%
- 3Y return: 6.98%
- AUM: 5.16 Lac Cr
- Sharpe Ratio: 4.36
Why consider Aditya Birla Sun Life Liquid Fund?
- Expense ratio: 0.12%
- 3Y return: 6.85%
- AUM: 3.43 Lac Cr
- Sharpe Ratio: 2.69
📈 SIP Suitability
For a monthly SIP, we recommend Axis Liquid Fund due to its higher 3-year return and lower expense ratio. While Aditya Birla Sun Life Liquid Fund has a higher T-Bills allocation, Axis Liquid Fund's diversified portfolio with a mix of CP, CD, T-Bills, and Debenture makes it a more stable option for long-term SIP investors.
[RISK_COST]⚠️ Risk & Cost Analysis
Axis Liquid Fund has a lower riskometer rating and volatility of 0.11, making it a safer option. Additionally, its Sharpe ratio of 4.36 indicates better risk-adjusted returns compared to Aditya Birla Sun Life Liquid Fund's Sharpe ratio of 2.69. However, Aditya Birla Sun Life Liquid Fund has a slightly lower expense ratio of 0.12%.
[PORTFOLIO_INSIGHT]📊 Portfolio Diversification
Axis Liquid Fund has a more diversified portfolio with a mix of CP, CD, T-Bills, and Debenture, reducing sector risk. In contrast, Aditya Birla Sun Life Liquid Fund's portfolio is heavily concentrated in T-Bills, which may increase sector risk. We recommend Axis Liquid Fund for its more diversified portfolio.
[FAQ]SIP Calculator – Compare Growth Potential
Axis Liquid Fund
₹869500.53
@7.0% annual return (3Y)
Aditya Birla Sun Life Liquid Fund
₹863216.47
@6.8% annual return (3Y)
*Projected returns are illustrative based on historical 3‑year returns. Past performance does not guarantee future returns.
❓ Frequently Asked Questions (Comparison)
Q1: Which fund gives better returns in the long run?
Sach ye hai, Axis Liquid Fund has a higher 5-year return of 6.17% compared to Aditya Birla Sun Life Liquid Fund's 6.05%.
Q2: Is the higher risk fund worth it?
Haan, Axis Liquid Fund's lower volatility and higher Sharpe ratio make it a better option despite being a higher risk fund.
Q3: Which fund is more cost-effective?
Axis Liquid Fund has a lower expense ratio of 0.11% compared to Aditya Birla Sun Life Liquid Fund's 0.12%, making it the more cost-effective option.
Mahendra Maurya
6+ Years in Banking, Wealth Management & Financial ServicesFounder & Author of ShareTargetPrice.in. 6+ years in Banking, Wealth Management & Financial Services.
📊 Author & Founder at Share Target Price