Axis Liquid Fund vs HDFC ELSS Tax Saver Fund
Side-by-side comparison of returns, risk, expenses, holdings and performance. AI-powered insights included.
3Y Return
6.98%
3Y Return
16.22%
Chaliye, dekho, we are comparing two funds from different categories - Axis Liquid Fund, a liquid fund, and HDFC ELSS Tax Saver Fund, an Equity Linked Savings Scheme (ELSS) fund. In this article, we will see which fund is better for long-term wealth creation and how they fare in terms of risk and cost. Sach ye hai, our goal is to help you make an informed decision.
| Parameter | AAxis Liquid Fund - Direct Plan - Growth | BHDFC ELSS Tax Saver Fund - Direct Plan - Growth |
|---|---|---|
| Fund House | Axis Mutual Fund | HDFC Mutual Fund |
| Category | Liquid | ELSS |
| NAV (₹) | 3096.85 | 1325.00 |
| AUM (₹ Cr) | 5.16 Lac Cr | 1.56 Lac Cr |
| Expense Ratio (%) | 0.11% | 1.24% |
| Riskometer | Low | Very High |
| Volatility | 0.11 | 13.3 |
| Sharpe Ratio | 4.36 | 0.73 |
| 1 Year Return (%) | 6.25% | -5.24% |
| 3 Year Return (%) | 6.98% | 16.22% |
| 5 Year Return (%) | 6.17% | 16.62% |
| Since Launch (%) | 6.86% | 12.04% |
| Min SIP (₹) | 500 | 500 |
| Min Lumpsum (₹) | 1000 | 1000 |
| Launch Date | 1 January 2013 | 3 April 2006 |
| Exit Load | Nil | Nil |
| Fund Manager | Aditya Pagaria; Devang Shah; Sachin Jain (13.4 years yrs) | Amar Kalkundrikar; Dhruv Muchhal (2.9 years yrs) |
| Benchmark | NIFTY Liquid Index | Nifty 500 TRI |
| Top 3 Holdings | Reserve Bank of India (3.46%), National Bank For Agriculture & Rural Development (3.37%), Reliance Jio Infocomm Ltd. (2.9%) | ICICI Bank Ltd. (8.93%), HDFC Bank Ltd. (8.23%), Axis Bank Ltd. (7.22%) |
| 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% | Equity: 96.57% | GOI Sec: 0.33% |
| Portfolio Turnover | 207% | 32% |
🤖 AI Verdict – Which is Better?
Haan, based on 3Y return, expense ratio, and risk, we think Axis Liquid Fund is better for long-term wealth creation. It has a 3Y return of 6.98% and an expense ratio of 0.11%, which is significantly lower than HDFC ELSS Tax Saver Fund's 16.22% return and 1.24% expense ratio. Lekin, HDFC ELSS Tax Saver Fund is a tax-saving fund, chaliye, let's discuss this in the SIP Suitability section.
Why consider Axis Liquid Fund?
- Expense ratio: 0.11%
- 3Y return: 6.98%
- AUM: 5.16 Lac Cr
- Sharpe Ratio: 4.36
Why consider HDFC ELSS Tax Saver Fund?
- Expense ratio: 1.24%
- 3Y return: 16.22%
- AUM: 1.56 Lac Cr
- Sharpe Ratio: 0.73
📈 SIP Suitability
For a monthly SIP for 10+ years, we think HDFC ELSS Tax Saver Fund is better. Although its returns are more volatile, its long-term returns are higher, and it offers better tax benefits. Lekin, if you are risk-averse, Axis Liquid Fund is a safer bet. Chaliye, let's see its risk profile in the Risk & Cost Analysis section.
⚠️ Risk & Cost Analysis
Axis Liquid Fund has a low riskometer and a Sharpe ratio of 4.36, which indicates better risk-adjusted returns. Its volatility is 0.11, which is significantly lower than HDFC ELSS Tax Saver Fund's 13.3. Haan, HDFC ELSS Tax Saver Fund's expense ratio is higher, but its returns are higher too. Lekin, this comes with higher risk.
📊 Portfolio Diversification
Axis Liquid Fund has a diversified portfolio with 53.47% in CP, 31.44% in CD, and 11.86% in T-Bills. HDFC ELSS Tax Saver Fund, on the other hand, has a high concentration of equity at 96.57%. This makes Axis Liquid Fund more diversified and less sector-risky. Chaliye, let's see how this affects its returns and risk profile.
SIP Calculator – Compare Growth Potential
Axis Liquid Fund
₹869500.53
@7.0% annual return (3Y)
HDFC ELSS Tax Saver Fund
₹1502840.21
@16.2% 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, based on 5Y returns, HDFC ELSS Tax Saver Fund gives better returns with a 16.62% return. Lekin, Axis Liquid Fund's 5Y return is 6.17%, which is lower but more stable.
Q2: Is the higher risk fund worth it?
Haan, HDFC ELSS Tax Saver Fund is a high-risk fund with a volatility of 13.3. Lekin, its Sharpe ratio is 0.73, which indicates some risk-adjusted returns. But, this comes with higher risk, and you should be prepared for market fluctuations.
Q3: Which fund is more cost-effective?
Axis Liquid Fund has a lower expense ratio of 0.11% compared to HDFC ELSS Tax Saver Fund's 1.24%. Chaliye, this makes Axis Liquid Fund more cost-effective in the long run.
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