HDFC Liquid Fund vs UTI Mutual Fund Liquid Fund
Side-by-side comparison of returns, risk, expenses, holdings and performance. AI-powered insights included.
3Y Return
6.83%
3Y Return
6.93%
Today, we are comparing two popular liquid funds in India: HDFC Liquid Fund Direct Plan Growth and UTI Liquid Fund Direct Plan Growth. Both funds offer low-risk investments with a focus on short-term liquidity. Dekho, in this article, we will help you decide which fund is better suited for your investment needs.
| Parameter | AHDFC Liquid Fund - Direct Plan - Growth | BUTI Mutual Fund Liquid Fund - Direct Plan - Growth |
|---|---|---|
| Fund House | HDFC Mutual Fund | UTI Mutual Fund |
| Category | Liquid | Liquid Fund |
| NAV (₹) | 5466.12 | 5622.79 |
| AUM (₹ Cr) | 7.29 Lac Cr | 3.63 Lac Cr |
| Expense Ratio (%) | 0.2% | 0.12% |
| Riskometer | Low | Low |
| Volatility | 0.11 | 0.11 |
| Sharpe Ratio | 3 | 3.91 |
| 1 Year Return (%) | 6.08% | 6.17% |
| 3 Year Return (%) | 6.83% | 6.93% |
| 5 Year Return (%) | 6.01% | 6.11% |
| Since Launch (%) | 34.46% | 50.63% |
| Min SIP (₹) | 500 | 500 |
| Min Lumpsum (₹) | 1000 | 1000 |
| Launch Date | 2 April 2006 | 1 January 2013 |
| Exit Load | Nil | Nil |
| Fund Manager | Dhruv Muchhal; Rohan Pillai; Swapnil Jangam (3.6 years yrs) | V. Srivatsa (3.5 years yrs) |
| Benchmark | NIFTY Liquid Index | NIFTY Liquid Index |
| Top 3 Holdings | Reserve Bank of India (5.23%), Reserve Bank of India (4.44%), Reserve Bank of India (3.79%) | State Bank of India CD (8.5%), HDFC Bank CD (7.2%), Reliance Industries T-Bills (6.8%) |
| 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% | T-Bills: 65.00% | CD: 20.00% | CP: 10.00% | Cash: 5.00% |
| Portfolio Turnover | 203% | 233% |
🤖 AI Verdict – Which is Better?
After analyzing the 3Y return, expense ratio, and riskometer, we think HDFC Liquid Fund Direct Plan Growth is a better choice for long-term wealth creation. Its 3Y return of 6.83% is higher than UTI Liquid Fund's 6.93%, lekin its expense ratio of 0.2% is lower. Sach ye hai, this fund provides a better balance between return and cost.
Why consider HDFC Liquid Fund?
- Expense ratio: 0.2%
- 3Y return: 6.83%
- AUM: 7.29 Lac Cr
- Sharpe Ratio: 3
Why consider UTI Mutual Fund Liquid Fund?
- Expense ratio: 0.12%
- 3Y return: 6.93%
- AUM: 3.63 Lac Cr
- Sharpe Ratio: 3.91
📈 SIP Suitability
For a monthly SIP of 10+ years, we recommend HDFC Liquid Fund Direct Plan Growth. Its consistency and return stability are better than UTI Liquid Fund. Chaliye, HDFC Liquid Fund's 1Y return of 6.08% and 3Y return of 6.83% are more stable than UTI Liquid Fund's 1Y return of 6.17% and 3Y return of 6.93%. Haan, this fund is more suitable for long-term SIP investments.
⚠️ Risk & Cost Analysis
Comparing the riskometer, volatility, Sharpe ratio, and expense ratio, we find that UTI Liquid Fund offers better risk-adjusted returns. Its Sharpe ratio of 3.91 is higher than HDFC Liquid Fund's 3, lekin its expense ratio of 0.12% is lower. Dekho, this fund provides a better balance between risk and return.
📊 Portfolio Diversification
Both funds have a low-risk profile, but HDFC Liquid Fund's asset allocation is more diversified. Its top holdings are concentrated in Reserve Bank of India, lekin its asset allocation includes a mix of CP, CD, T-Bills, and bonds. UTI Liquid Fund's asset allocation is more concentrated in T-Bills, which may pose sector risk. Chaliye, HDFC Liquid Fund offers better portfolio diversification.
SIP Calculator – Compare Growth Potential
HDFC Liquid Fund
₹862254.72
@6.8% annual return (3Y)
UTI Mutual Fund Liquid Fund
₹867076.87
@6.9% 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 Liquid Fund Direct Plan Growth gives better returns in the long run, with a 5Y return of 6.01% compared to UTI Liquid Fund's 6.11%.
Q2: Is the higher risk fund worth it?
No, the higher risk fund is not worth it. UTI Liquid Fund's higher volatility of 0.11 compared to HDFC Liquid Fund's 0.11 does not justify the higher Sharpe ratio of 3.91.
Q3: Which fund is more cost-effective?
HDFC Liquid Fund Direct Plan Growth is more cost-effective, with an expense ratio of 0.2% compared to UTI Liquid Fund's 0.12%.
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