SBI Debt Fund vs HDFC Liquid Fund
Side-by-side comparison of returns, risk, expenses, holdings and performance. AI-powered insights included.
3Y Return
14.51%
3Y Return
6.83%
Today, we are comparing two popular funds from leading Indian asset management companies, SBI Debt Fund and HDFC Liquid Fund. In this article, we will compare their performance, risk, and diversification to help you make an informed decision for your investments. Dekho, let's dive in!
| Parameter | ASBI Debt Fund - Direct Plan - Growth | BHDFC Liquid Fund - Direct Plan - Growth |
|---|---|---|
| Fund House | SBI Mutual Fund | HDFC Mutual Fund |
| Category | Debt | Liquid |
| NAV (₹) | 13.73 | 5466.12 |
| AUM (₹ Cr) | 8.34 Lac Cr | 7.29 Lac Cr |
| Expense Ratio (%) | 0.71% | 0.2% |
| Riskometer | Moderate | Low |
| Volatility | 3 | 0.11 |
| Sharpe Ratio | 2.67 | 3 |
| 1 Year Return (%) | 4.95% | 6.08% |
| 3 Year Return (%) | 14.51% | 6.83% |
| 5 Year Return (%) | 12.09% | 6.01% |
| Since Launch (%) | N/A | 34.46% |
| Min SIP (₹) | 500 | 500 |
| Min Lumpsum (₹) | 1000 | 1000 |
| Launch Date | 9 April 2018 | 2 April 2006 |
| Exit Load | Nil | Nil |
| Fund Manager | Ardhendu Bhattacharya; Ruchit Mehta (4.1 years yrs) | Dhruv Muchhal; Rohan Pillai; Swapnil Jangam (3.6 years yrs) |
| Benchmark | CRISIL Composite Bond Fund Index | NIFTY Liquid Index |
| Top 3 Holdings | National Bank For Agriculture And Rural Development (5.8%), Power Finance Corporation Ltd. (5.2%), Rural Electrification Corporation Ltd. (4.9%) | Reserve Bank of India (5.23%), Reserve Bank of India (4.44%), Reserve Bank of India (3.79%) |
| Asset Allocation | Debenture: 40.00% | SDL: 30.00% | T-Bills: 20.00% | GOI Sec: 10.00% | CP: 47.67% | CD: 31.92% | T-Bills: 19.85% | Debenture: 2.05% | Bonds/NCD: 0.13% | Debt: 0.06% | SDL: 0.04% |
| Portfolio Turnover | 150% | 203% |
🤖 AI Verdict – Which is Better?
After analyzing the data, we can say that Fund A, SBI Debt Fund, is better for long-term wealth creation. It offers a higher 3Y return of 14.51% compared to Fund B's 6.83%. Lekin, HDFC Liquid Fund has a lower expense ratio of 0.2% compared to 0.71% of SBI Debt Fund. However, considering the riskometer, volatility, and Sharpe ratio, SBI Debt Fund is a better bet. Haan, SBI Debt Fund seems to be the winner here.
Why consider SBI Debt Fund?
- Expense ratio: 0.71%
- 3Y return: 14.51%
- AUM: 8.34 Lac Cr
- Sharpe Ratio: 2.67
Why consider HDFC Liquid Fund?
- Expense ratio: 0.2%
- 3Y return: 6.83%
- AUM: 7.29 Lac Cr
- Sharpe Ratio: 3
📈 SIP Suitability
For a monthly SIP of 10+ years, we recommend Fund B, HDFC Liquid Fund. It offers a more consistent return of 6.01% over 5 years compared to Fund A's 12.09%. Chaliye, HDFC Liquid Fund provides a stable return, making it suitable for long-term SIP investment.
⚠️ Risk & Cost Analysis
When it comes to riskometer, volatility, Sharpe ratio, and expense ratio, Fund A, SBI Debt Fund, offers better risk-adjusted returns. Its riskometer is moderate, with a Sharpe ratio of 2.67 and a relatively low volatility of 3. Although HDFC Liquid Fund has a lower expense ratio, its returns are not as impressive. Sach ye hai, SBI Debt Fund seems to offer better risk-adjusted returns.
📊 Portfolio Diversification
Looking at the asset allocation, we can see that Fund A, SBI Debt Fund, has a more diversified portfolio with assets spread across debentures, SDL, T-Bills, and GOI Sec. In contrast, HDFC Liquid Fund has a high concentration of CP and CD, making it more vulnerable to sector risk. Dekho, SBI Debt Fund's diversified portfolio offers better risk management.
SIP Calculator – Compare Growth Potential
SBI Debt Fund
₹1351949.82
@14.5% annual return (3Y)
HDFC Liquid Fund
₹862254.72
@6.8% 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?
SBI Debt Fund offers higher returns over 3 years (14.51%) and 5 years (12.09%) compared to HDFC Liquid Fund's returns of 6.83% and 6.01% respectively.
Q2: Is the higher risk fund worth it?
Although SBI Debt Fund is riskier than HDFC Liquid Fund, its higher returns and better risk-adjusted returns make it a better option. HDFC Liquid Fund's lower volatility doesn't translate to higher returns, making it less attractive.
Q3: Which fund is more cost-effective?
HDFC Liquid Fund has a lower expense ratio of 0.2% compared to SBI Debt Fund's 0.71%. However, considering the returns, SBI Debt Fund offers better value for money.
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