HDFC Liquid Fund vs Axis Bluechip Fund
Side-by-side comparison of returns, risk, expenses, holdings and performance. AI-powered insights included.
3Y Return
6.83%
3Y Return
19.68%
Today, we are comparing two popular mutual funds in India, Fund A - HDFC Liquid Fund and Fund B - Axis Bluechip Fund. Fund A is a liquid fund, which provides a safe and low-risk investment option, whereas Fund B is a large-cap fund, which offers growth potential but with higher risk. In this article, we will compare their performance, risk profiles, and expense ratios to help you decide which fund is better suited for your investment goals.
| Parameter | AHDFC Liquid Fund - Direct Plan - Growth | BAxis Bluechip Fund - Regular Plan - Growth |
|---|---|---|
| Fund House | HDFC Mutual Fund | Axis Mutual Fund |
| Category | Liquid | Large Cap |
| NAV (₹) | 5466.12 | 18.82 |
| AUM (₹ Cr) | 7.29 Lac Cr | 3.45 Lac Cr |
| Expense Ratio (%) | 0.2% | 1.52% |
| Riskometer | Low | Very High |
| Volatility | 0.11 | 11.34 |
| Sharpe Ratio | 3 | 1.16 |
| 1 Year Return (%) | 6.08% | 4.44% |
| 3 Year Return (%) | 6.83% | 19.68% |
| 5 Year Return (%) | 6.01% | 5.62% |
| Since Launch (%) | 34.46% | 14.6% |
| Min SIP (₹) | 500 | 500 |
| Min Lumpsum (₹) | 1000 | 1000 |
| Launch Date | 2 April 2006 | 28 September 2021 |
| Exit Load | Nil | Nil |
| Fund Manager | Dhruv Muchhal; Rohan Pillai; Swapnil Jangam (3.6 years yrs) | Ashish Naik; Shreyash Devalkar (7.8 years yrs) |
| Benchmark | NIFTY Liquid Index | Nifty 50 |
| Top 3 Holdings | Reserve Bank of India (5.23%), Reserve Bank of India (4.44%), Reserve Bank of India (3.79%) | HDFC Bank Ltd. (8.5%), ICICI Bank Ltd. (7.8%), Reliance Industries Ltd. (6.9%) |
| Asset Allocation | CP: 47.67% | CD: 31.92% | T-Bills: 19.85% | Debenture: 2.05% | Bonds/NCD: 0.13% | Debt: 0.06% | SDL: 0.04% | Equity: 96.00% | T-Bills: 4.00% |
| Portfolio Turnover | 203% | 16% |
🤖 AI Verdict – Which is Better?
Sach ye hai, Fund A is a clear winner for long-term wealth creation. It has a consistently lower expense ratio of 0.2% compared to Fund B's 1.52%. Additionally, Fund A's 3Y return of 6.83% is higher than Fund B's 19.68%, despite the latter's higher risk profile. Therefore, if you're looking for a low-risk investment with stable returns, Fund A is the better choice.
Why consider HDFC Liquid Fund?
- Expense ratio: 0.2%
- 3Y return: 6.83%
- AUM: 7.29 Lac Cr
- Sharpe Ratio: 3
Why consider Axis Bluechip Fund?
- Expense ratio: 1.52%
- 3Y return: 19.68%
- AUM: 3.45 Lac Cr
- Sharpe Ratio: 1.16
📈 SIP Suitability
Chaliye, let's compare the two funds for a monthly SIP of 10+ years. Fund A's consistent returns and low volatility make it a better choice for a long-term SIP. Its 1Y return of 6.08% is lower than Fund B's 4.44%, but its 3Y return of 6.83% is higher. This indicates that Fund A's returns are more stable and less prone to market fluctuations, making it a better option for a long-term SIP.
⚠️ Risk & Cost Analysis
Riskometer and volatility are key indicators of a fund's risk profile. Fund A has a low riskometer and low volatility of 0.11, while Fund B has a high riskometer and high volatility of 11.34. Additionally, Fund A's Sharpe ratio of 3 is higher than Fund B's 1.16, indicating better risk-adjusted returns. Considering these factors, Fund A offers better risk-adjusted returns and is a more cost-effective option with an expense ratio of 0.2% compared to Fund B's 1.52%.
📊 Portfolio Diversification
Let's compare the asset allocation of the two funds. Fund A has a diversified portfolio with 47.67% in CP, 31.92% in CD, and 19.85% in T-Bills. In contrast, Fund B is heavily invested in equity with 96% allocation, which makes it riskier. Additionally, Fund B's top holdings are concentrated in a few stocks, including HDFC Bank Ltd., ICICI Bank Ltd., and Reliance Industries Ltd., which increases sector risk. Therefore, Fund A's portfolio is more diversified and less prone to sector risk.
SIP Calculator – Compare Growth Potential
HDFC Liquid Fund
₹862254.72
@6.8% annual return (3Y)
Axis Bluechip Fund
₹1872598.46
@19.7% 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?
Based on 5Y returns, Fund A has a 5Y return of 6.01%, whereas Fund B has a 5Y return of 5.62%. Therefore, Fund A gives better returns in the long run.
Q2: Is the higher risk fund worth it?
No, considering Fund B's high volatility of 11.34 and lower Sharpe ratio of 1.16 compared to Fund A's low volatility and higher Sharpe ratio. Therefore, the higher risk is not justified by the returns.
Q3: Which fund is more cost-effective?
Fund A is more cost-effective with an expense ratio of 0.2% compared to Fund B's 1.52%. Therefore, if cost is a consideration, Fund A is the better 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