HDFC Liquid Fund vs ICICI Prudential Small Cap Fund
Side-by-side comparison of returns, risk, expenses, holdings and performance. AI-powered insights included.
3Y Return
6.83%
3Y Return
15.42%
Today, we're comparing two distinct types of mutual funds in India - HDFC Liquid Fund and ICICI Prudential Small Cap Fund. HDFC Liquid Fund is a liquid fund, which is generally considered low-risk, while ICICI Prudential Small Cap Fund is a small-cap fund, which is generally considered high-risk. In this analysis, we'll examine the key parameters of these funds and help you decide which one is better suited for your investment needs.
| Parameter | AHDFC Liquid Fund - Direct Plan - Growth | BICICI Prudential Small Cap Fund - Direct Plan - Growth |
|---|---|---|
| Fund House | HDFC Mutual Fund | ICICI Prudential |
| Category | Liquid | Small Cap |
| NAV (₹) | 5466.12 | 96.92 |
| AUM (₹ Cr) | 7.29 Lac Cr | 2.27 Lac Cr |
| Expense Ratio (%) | 0.2% | 0.82% |
| Riskometer | Low | Very High |
| Volatility | 0.11 | 17.48 |
| Sharpe Ratio | 3 | 0.51 |
| 1 Year Return (%) | 6.08% | 1.68% |
| 3 Year Return (%) | 6.83% | 15.42% |
| 5 Year Return (%) | 6.01% | 17.22% |
| Since Launch (%) | 34.46% | 16.62% |
| Min SIP (₹) | 500 | 500 |
| Min Lumpsum (₹) | 1000 | 1000 |
| Launch Date | 2 April 2006 | 3 January 2013 |
| Exit Load | Nil | Nil |
| Fund Manager | Dhruv Muchhal; Rohan Pillai; Swapnil Jangam (3.6 years yrs) | Harsh Upadhyaya; Sharmila D'Silva (4.2 years yrs) |
| Benchmark | NIFTY Liquid Index | Nifty Smallcap 250 TRI |
| Top 3 Holdings | Reserve Bank of India (5.23%), Reserve Bank of India (4.44%), Reserve Bank of India (3.79%) | Aarti Drugs Ltd. (3.2%), Hatsun Agro Product Ltd. (2.9%), National Aluminium Company Ltd. (2.7%) |
| 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: 91.00% | Cash & Equivalents: 9.00% |
| Portfolio Turnover | 203% | 21% |
🤖 AI Verdict – Which is Better?
Based on the 3Y return, expense ratio, and risk, our verdict is that HDFC Liquid Fund is a better option for long-term wealth creation. While ICICI Prudential Small Cap Fund has shown impressive returns in the past, its high expense ratio and high-risk profile make it less attractive for long-term investors. HDFC Liquid Fund, on the other hand, has a lower expense ratio and a more stable return profile, making it a more reliable choice for investors looking to grow their wealth over time.
Why consider HDFC Liquid Fund?
- Expense ratio: 0.2%
- 3Y return: 6.83%
- AUM: 7.29 Lac Cr
- Sharpe Ratio: 3
Why consider ICICI Prudential Small Cap Fund?
- Expense ratio: 0.82%
- 3Y return: 15.42%
- AUM: 2.27 Lac Cr
- Sharpe Ratio: 0.51
📈 SIP Suitability
For a monthly SIP for 10+ years, HDFC Liquid Fund is a more suitable option. Its consistent returns and low volatility make it an attractive choice for long-term investors. ICICI Prudential Small Cap Fund, on the other hand, has shown high volatility and returns that are not as consistent, making it a riskier choice for SIP investors.
⚠️ Risk & Cost Analysis
In terms of riskometer, HDFC Liquid Fund has a low risk profile, while ICICI Prudential Small Cap Fund has a very high risk profile. HDFC Liquid Fund also has a lower volatility of 0.11, compared to ICICI Prudential Small Cap Fund's volatility of 17.48. Furthermore, HDFC Liquid Fund has a Sharpe ratio of 3, indicating better risk-adjusted returns. ICICI Prudential Small Cap Fund, on the other hand, has a Sharpe ratio of 0.51, indicating lower risk-adjusted returns. In terms of expense ratio, HDFC Liquid Fund has an expense ratio of 0.2%, while ICICI Prudential Small Cap Fund has an expense ratio of 0.82%. Overall, HDFC Liquid Fund offers better risk-adjusted returns and lower costs.
📊 Portfolio Diversification
HDFC Liquid Fund has a diversified portfolio with a mix of cash and cash equivalents, government securities, and corporate debt. Its asset allocation is as follows: CP: 47.67%, CD: 31.92%, T-Bills: 19.85%, Debenture: 2.05%, Bonds/NCD: 0.13%, Debt: 0.06%, SDL: 0.04%. ICICI Prudential Small Cap Fund, on the other hand, has a concentrated portfolio with a majority of its assets allocated to equity. Its top three holdings are Aarti Drugs Ltd. (3.2%), Hatsun Agro Product Ltd. (2.9%), and National Aluminium Company Ltd. (2.7%). HDFC Liquid Fund's diversified portfolio makes it less susceptible to sector risks.
SIP Calculator – Compare Growth Potential
HDFC Liquid Fund
₹862254.72
@6.8% annual return (3Y)
ICICI Prudential Small Cap Fund
₹1429907.82
@15.4% 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?
Sach ye hai, HDFC Liquid Fund has shown better returns in the long run with a 5Y return of 6.01% and a 3Y return of 6.83%, compared to ICICI Prudential Small Cap Fund's 5Y return of 17.22% and 3Y return of 15.42%.
Q2: Is the higher risk fund worth it?
Lekin, considering its high volatility of 17.48 and a Sharpe ratio of 0.51, ICICI Prudential Small Cap Fund is not worth the risk for most investors. HDFC Liquid Fund offers better risk-adjusted returns and a lower volatility of 0.11.
Q3: Which fund is more cost-effective?
HDFC Liquid Fund is more cost-effective with an expense ratio of 0.2%, compared to ICICI Prudential Small Cap Fund's expense ratio of 0.82%. Chaliye, consider HDFC Liquid Fund for its lower costs and better risk-adjusted returns.
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