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DebtVSLiquid Fund

SBI Debt Fund vs Canara Robeco Liquid Fund

Side-by-side comparison of returns, risk, expenses, holdings and performance. AI-powered insights included.

3Y Return

14.51%

VS

3Y Return

6.96%

Chaliye dekho, today we are comparing two popular funds from different categories - SBI Debt Fund and Canara Robeco Liquid Fund. Fund A is a debt fund, which is suitable for investors looking for regular income and moderate risk, while Fund B is a liquid fund, ideal for those seeking liquidity and low risk. In this article, we will analyze these funds based on their performance, risk, and cost to determine which one is better for long-term wealth creation.

ParameterASBI Debt Fund - Direct Plan - GrowthBCanara Robeco Liquid Fund - Direct Plan - Growth
Fund HouseSBI Mutual FundCanara Robeco
CategoryDebtLiquid Fund
NAV (₹)13.733337.33
AUM (₹ Cr)8.34 Lac Cr3.95 Lac Cr
Expense Ratio (%)0.71%0.12%
RiskometerModerateLow
Volatility30.11
Sharpe Ratio2.674.18
1 Year Return (%)4.95%6.22%
3 Year Return (%)14.51%6.96%
5 Year Return (%)12.09%6.13%
Since Launch (%)N/A6.72%
Min SIP (₹)500500
Min Lumpsum (₹)10001000
Launch Date9 April 20181 January 2013
Exit LoadNilNil
Fund ManagerArdhendu Bhattacharya; Ruchit Mehta (4.1 years yrs)Shridatta Bhandwaldar (3.5 years yrs)
BenchmarkCRISIL Composite Bond Fund IndexNIFTY Liquid Index
Top 3 HoldingsNational Bank For Agriculture And Rural Development (5.8%), Power Finance Corporation Ltd. (5.2%), Rural Electrification Corporation Ltd. (4.9%)State Bank of India CD (8.5%), HDFC Bank CD (7.2%), Reliance Industries T-Bills (6.8%)
Asset AllocationDebenture: 40.00% | SDL: 30.00% | T-Bills: 20.00% | GOI Sec: 10.00%T-Bills: 65.00% | CD: 20.00% | CP: 10.00% | Cash: 5.00%
Portfolio Turnover150%223%

🤖 AI Verdict – Which is Better?

Sach ye hai, for long-term wealth creation, we consider 3Y return, expense ratio, and riskometer. Fund A has a 3Y return of 14.51%, which is higher than Fund B's 6.96%. However, Fund B has a lower expense ratio of 0.12% compared to Fund A's 0.71%. Considering these factors, our verdict is that Fund B is a better option for long-term wealth creation due to its consistent returns and lower costs.

Why consider SBI Debt Fund?

  • Expense ratio: 0.71%
  • 3Y return: 14.51%
  • AUM: 8.34 Lac Cr
  • Sharpe Ratio: 2.67

Why consider Canara Robeco Liquid Fund?

  • Expense ratio: 0.12%
  • 3Y return: 6.96%
  • AUM: 3.95 Lac Cr
  • Sharpe Ratio: 4.18

📈 SIP Suitability

SIPs are a great way to invest in mutual funds, and we need to consider which fund is better suited for SIPs. Fund B has a higher consistency in returns compared to Fund A, making it a better option for SIPs. With a Sharpe ratio of 4.18, Fund B offers better risk-adjusted returns, which is ideal for SIPs.

⚠️ Risk & Cost Analysis

dekho, when it comes to risk and cost, we need to compare riskometer, volatility, Sharpe ratio, and expense ratio. Fund B has a lower riskometer rating of Low compared to Fund A's Moderate rating. Additionally, Fund B has a lower volatility of 0.11 compared to Fund A's 3. This indicates that Fund B is a safer option. However, Fund A's Sharpe ratio of 2.67 is higher than Fund B's 4.18, which means Fund A offers better risk-adjusted returns.

📊 Portfolio Diversification

Portfolio diversification is crucial to minimize risk. Fund A has an asset allocation of 40% Debenture, 30% SDL, 20% T-Bills, and 10% GOI Sec, while Fund B has an asset allocation of 65% T-Bills, 20% CD, 10% CP, and 5% Cash. Fund A's asset allocation is more diversified compared to Fund B, which has a higher concentration in T-Bills.

SIP Calculator – Compare Growth Potential

SBI Debt Fund

1351949.82

@14.5% annual return (3Y)

Canara Robeco Liquid Fund

868530.05

@7.0% 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?

Haan, according to 5Y and 3Y returns, Fund A gives better returns in the long run.

Q2: Is the higher risk fund worth it?

Lekin, considering volatility and Sharpe ratio, Fund A's higher risk may not be worth it, as Fund B offers better risk-adjusted returns.

Q3: Which fund is more cost-effective?

Sach ye hai, Fund B is more cost-effective with an expense ratio of 0.12% compared to Fund A's 0.71%.

Mahendra Maurya

Mahendra Maurya

6+ Years in Banking, Wealth Management & Financial Services

Founder & Author of ShareTargetPrice.in. 6+ years in Banking, Wealth Management & Financial Services.

📊 Author & Founder at Share Target Price

⚠️ Disclaimer: Mutual fund investments are subject to market risks. Past performance does not guarantee future returns. AI-generated insights are based solely on historical data and do not constitute investment advice. Please consult your SEBI-registered financial advisor.