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DebtVSLiquid

SBI Debt Fund vs SBI Liquid Fund

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

3Y Return

14.51%

VS

3Y Return

6.89%

Sach ye hai, debt funds aur liquid funds don't seem like vastly different options at first glance. Fund A, SBI Debt Fund - Direct Plan - Growth, is a debt fund, lekin Fund B, SBI Liquid Fund - Direct Plan - Growth, is a liquid fund. Dekho, both funds are offered by the same AMC, State Bank of India. In this article, hum are going to compare these two funds and help you decide which one is better for your investment goals.

ParameterASBI Debt Fund - Direct Plan - GrowthBSBI Liquid Fund - Direct Plan - Growth
Fund HouseSBI Mutual FundSBI Mutual Fund
CategoryDebtLiquid
NAV (₹)13.734351.16
AUM (₹ Cr)8.34 Lac Cr7.12 Lac Cr
Expense Ratio (%)0.71%0.12%
RiskometerModerateLow
Volatility30.12
Sharpe Ratio2.673.25
1 Year Return (%)4.95%6.15%
3 Year Return (%)14.51%6.89%
5 Year Return (%)12.09%6.09%
Since Launch (%)N/A6.79%
Min SIP (₹)500500
Min Lumpsum (₹)10001000
Launch Date9 April 20181 January 2013
Exit LoadNilNil
Fund ManagerArdhendu Bhattacharya; Ruchit Mehta (4.1 years yrs)Ruchit Mehta; Ardhendu Bhattacharya (3.2 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%260%

🤖 AI Verdict – Which is Better?

Haan, after analyzing the data, hum are going to give a clear verdict. Fund A, SBI Debt Fund, is a better option for long-term wealth creation. Dekho, its 3Y return of 14.51% is higher than Fund B's 6.89%. Lekin, expense ratio is a concern. Fund A has an expense ratio of 0.71%, while Fund B has an expense ratio of 0.12%. Riskometer se bhi, Fund A is classified as Moderate, while Fund B is classified as Low. Hence, Fund A is a better option for those who can take on moderate risk for higher returns.

Why consider SBI Debt Fund?

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

Why consider SBI Liquid Fund?

  • Expense ratio: 0.12%
  • 3Y return: 6.89%
  • AUM: 7.12 Lac Cr
  • Sharpe Ratio: 3.25

📈 SIP Suitability

Chaliye, let's talk about SIP suitability. Hum are going to compare the consistency and return stability of both funds. Dekho, Fund B, SBI Liquid Fund, has a 1Y return of 6.15%, while Fund A has a 1Y return of 4.95%. Lekin, Fund B's returns are more stable, with a 3Y return of 6.89% and a 5Y return of 6.09%. Fund A's returns are more volatile, with a 3Y return of 14.51% and a 5Y return of 12.09%. Hence, Fund B is a better option for a monthly SIP for 10+ years.

⚠️ Risk & Cost Analysis

Haan, let's compare the riskometer, volatility, Sharpe ratio, and expense ratio of both funds. Dekho, Fund A has a riskometer of Moderate, while Fund B has a riskometer of Low. Volatility-wise, Fund A has a volatility of 3, while Fund B has a volatility of 0.12. Sharpe ratio-wise, Fund A has a Sharpe ratio of 2.67, while Fund B has a Sharpe ratio of 3.25. Expense ratio-wise, Fund B is more cost-effective with an expense ratio of 0.12%, while Fund A has an expense ratio of 0.71%. Hence, Fund B offers better risk-adjusted returns.

📊 Portfolio Diversification

Chaliye, let's compare the asset allocation and top holdings concentration of both funds. Dekho, Fund A's asset allocation is Debenture: 40.00%, SDL: 30.00%, T-Bills: 20.00%, and GOI Sec: 10.00%. Fund B's asset allocation is T-Bills: 65.00%, CD: 20.00%, CP: 10.00%, and Cash: 5.00%. Top holdings-wise, Fund A has National Bank For Agriculture And Rural Development (5.8%), Power Finance Corporation Ltd. (5.2%), and Rural Electrification Corporation Ltd. (4.9%). Fund B has State Bank of India CD (8.5%), HDFC Bank CD (7.2%), and Reliance Industries T-Bills (6.8%). Hence, Fund B is more diversified with a lower concentration of top holdings.

SIP Calculator – Compare Growth Potential

SBI Debt Fund

1351949.82

@14.5% annual return (3Y)

SBI Liquid Fund

865144.00

@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?

Answer: Fund A gives better returns in the long run with a 5Y return of 12.09%. Lekin, Fund B's returns are more stable.

Q2: Is the higher risk fund worth it?

Answer: N/A, because we already compared the two funds and found Fund B to be more stable and cost-effective.

Q3: Which fund is more cost-effective?

Answer: Fund B is more cost-effective with an expense ratio of 0.12% compared to Fund A's expense ratio of 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.