Axis Liquid Fund vs HDFC Infra Fund
Side-by-side comparison of returns, risk, expenses, holdings and performance. AI-powered insights included.
3Y Return
6.98%
3Y Return
7.4%
Today, we are going to compare two funds - Axis Liquid Fund and HDFC Infra Fund. Both are popular choices among Indian investors, but they belong to different categories. Axis Liquid Fund is a liquid fund, which is suitable for short-term goals, while HDFC Infra Fund is a thematic fund focused on infrastructure sector. In this article, we will help you understand the key differences between these two funds and make an informed decision for your investments.
[VERDICT]| Parameter | AAxis Liquid Fund - Direct Plan - Growth | BHDFC Infra Fund - Direct Plan - Growth |
|---|---|---|
| Fund House | Axis Mutual Fund | HDFC Mutual Fund |
| Category | Liquid | Thematic |
| NAV (₹) | 3096.85 | 33.77 |
| AUM (₹ Cr) | 5.16 Lac Cr | 2.19 Lac Cr |
| Expense Ratio (%) | 0.11% | 0.5% |
| Riskometer | Low | Moderate |
| Volatility | 0.11 | 14.88 |
| Sharpe Ratio | 4.36 | 0.06 |
| 1 Year Return (%) | 6.25% | 6.36% |
| 3 Year Return (%) | 6.98% | 7.4% |
| 5 Year Return (%) | 6.17% | 6.49% |
| Since Launch (%) | 6.86% | 6.63% |
| Min SIP (₹) | 500 | 500 |
| Min Lumpsum (₹) | 1000 | 1000 |
| Launch Date | 1 January 2013 | 1 January 2013 |
| Exit Load | Nil | Nil |
| Fund Manager | Aditya Pagaria; Devang Shah; Sachin Jain (13.4 years yrs) | Roshi Jain (3.5 years yrs) |
| Benchmark | NIFTY Liquid Index | Nifty Infrastructure TRI |
| Top 3 Holdings | Reserve Bank of India (3.46%), National Bank For Agriculture & Rural Development (3.37%), Reliance Jio Infocomm Ltd. (2.9%) | HDFC Bank Ltd. (5.8%), ICICI Bank Ltd. (5.2%), Larsen & Toubro Ltd. (4.9%) |
| 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: 95.00% | T-Bills: 5.00% |
| Portfolio Turnover | 207% | 35% |
🤖 AI Verdict – Which is Better?
For long-term wealth creation, HDFC Infra Fund seems to be a better choice. It has higher 3Y return (7.4%) compared to Axis Liquid Fund (6.98%). Although HDFC Infra Fund has a higher expense ratio (0.5%), its moderate risk level (Riskometer: Moderate) and ability to generate higher returns make it a more attractive option. However, please note that HDFC Infra Fund is a thematic fund, which means it carries sector risk. Therefore, it's essential to assess your risk appetite and investment goals before investing in this fund.
[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 HDFC Infra Fund?
- Expense ratio: 0.5%
- 3Y return: 7.4%
- AUM: 2.19 Lac Cr
- Sharpe Ratio: 0.06
📈 SIP Suitability
For a monthly SIP of 10+ years, both funds can be suitable, but Axis Liquid Fund is more consistent in its returns. It has lower volatility (0.11) compared to HDFC Infra Fund (14.88), making it a better option for those who want stable returns over a long period. However, HDFC Infra Fund's higher returns might attract investors looking for growth. It's essential to assess your risk appetite and investment goals before choosing a fund for your SIP.
[RISK_COST]⚠️ Risk & Cost Analysis
Axis Liquid Fund seems to offer better risk-adjusted returns. Its low riskometer (Low) and volatility (0.11) are accompanied by a low expense ratio (0.11%). HDFC Infra Fund, on the other hand, has a moderate risk level and higher volatility (14.88), which might not be suitable for all investors. Sharpe ratio of Axis Liquid Fund (4.36) is also higher than HDFC Infra Fund (0.06), indicating better risk-adjusted returns.
[PORTFOLIO_INSIGHT]📊 Portfolio Diversification
Axis Liquid Fund has a more diversified portfolio with a mix of corporate papers (CP), commercial papers (CD), T-Bills, and other debt instruments. HDFC Infra Fund, on the other hand, is heavily invested in equities (95%) with a small allocation to T-Bills (5%). This makes HDFC Infra Fund more concentrated in the infrastructure sector, which carries sector risk. Therefore, Axis Liquid Fund is more diversified and suitable for investors who want to minimize sector risk.
[FAQ]SIP Calculator – Compare Growth Potential
Axis Liquid Fund
₹869500.53
@7.0% annual return (3Y)
HDFC Infra Fund
₹890195.03
@7.4% 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?
HDFC Infra Fund seems to give better returns in the long run, with 5Y return of 6.49% compared to Axis Liquid Fund's 5Y return of 6.17%.
Q2: Is the higher risk fund worth it?
No, HDFC Infra Fund's higher risk might not be worth it, considering its higher volatility (14.88) and lower Sharpe ratio (0.06) compared to Axis Liquid Fund.
Q3: Which fund is more cost-effective?
Axis Liquid Fund is more cost-effective, with an expense ratio of 0.11% compared to HDFC Infra Fund's 0.5%.
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