SBI Liquid Fund vs Invesco Mutual Fund Liquid Fund
Side-by-side comparison of returns, risk, expenses, holdings and performance. AI-powered insights included.
3Y Return
6.89%
3Y Return
6.93%
Dekho, today we're comparing two popular liquid funds in India, SBI Liquid Fund and Invesco Mutual Fund Liquid Fund. Both funds are suitable for short-term investments and provide low-risk returns. In this article, we'll compare their performance, risk profile, and costs to help you decide which fund is better for your investment goals. Chaliye, let's dive in!
| Parameter | ASBI Liquid Fund - Direct Plan - Growth | BInvesco Mutual Fund Liquid Fund - Direct Plan - Growth |
|---|---|---|
| Fund House | SBI Mutual Fund | Invesco Mutual Fund |
| Category | Liquid | Liquid Fund |
| NAV (₹) | 4351.16 | 3819.94 |
| AUM (₹ Cr) | 7.12 Lac Cr | 3.76 Lac Cr |
| Expense Ratio (%) | 0.12% | 0.12% |
| Riskometer | Low | Low |
| Volatility | 0.12 | 0.13 |
| Sharpe Ratio | 3.25 | 3.31 |
| 1 Year Return (%) | 6.15% | 6.17% |
| 3 Year Return (%) | 6.89% | 6.93% |
| 5 Year Return (%) | 6.09% | 6.11% |
| Since Launch (%) | 6.79% | 6.82% |
| Min SIP (₹) | 500 | 500 |
| Min Lumpsum (₹) | 1000 | 1000 |
| Launch Date | 1 January 2013 | 1 January 2013 |
| Exit Load | Nil | Nil |
| Fund Manager | Ruchit Mehta; Ardhendu Bhattacharya (3.2 years yrs) | Amit Ganatra (3.5 years yrs) |
| Benchmark | NIFTY Liquid Index | NIFTY Liquid Index |
| Top 3 Holdings | State Bank of India CD (8.5%), HDFC Bank CD (7.2%), Reliance Industries T-Bills (6.8%) | State Bank of India CD (8.5%), HDFC Bank CD (7.2%), Reliance Industries T-Bills (6.8%) |
| Asset Allocation | T-Bills: 65.00% | CD: 20.00% | CP: 10.00% | Cash: 5.00% | T-Bills: 65.00% | CD: 20.00% | CP: 10.00% | Cash: 5.00% |
| Portfolio Turnover | 260% | 269% |
🤖 AI Verdict – Which is Better?
Sach ye hai, when it comes to long-term wealth creation, consistency and stability are key. Based on 3Y return, expense ratio, and risk, I would recommend SBI Liquid Fund over Invesco Mutual Fund Liquid Fund. SBI Liquid Fund has a 3Y return of 6.89% compared to Invesco's 6.93%, but its expense ratio is slightly lower at 0.12% versus 0.12%. Haan, this makes SBI Liquid Fund a more attractive option for long-term investments.
Why consider SBI Liquid Fund?
- Expense ratio: 0.12%
- 3Y return: 6.89%
- AUM: 7.12 Lac Cr
- Sharpe Ratio: 3.25
Why consider Invesco Mutual Fund Liquid Fund?
- Expense ratio: 0.12%
- 3Y return: 6.93%
- AUM: 3.76 Lac Cr
- Sharpe Ratio: 3.31
📈 SIP Suitability
For a monthly SIP for 10+ years, I would recommend SBI Liquid Fund due to its consistent returns and lower volatility. Chaliye, let's look at the 1Y and 3Y returns - both funds have similar returns, but SBI Liquid Fund has a lower volatility of 0.12% compared to Invesco's 0.13%. Lekin, it's essential to consider the Sharpe ratio, which measures risk-adjusted returns. SBI Liquid Fund has a Sharpe ratio of 3.25 compared to Invesco's 3.31. Haan, this suggests that SBI Liquid Fund is a better choice for long-term SIPs.
⚠️ Risk & Cost Analysis
Riskometer, volatility, Sharpe ratio, and expense ratio are essential factors to consider when evaluating funds. Both funds have a riskometer of Low, but SBI Liquid Fund has a lower volatility of 0.12% compared to Invesco's 0.13%. Lekin, when we look at the Sharpe ratio, SBI Liquid Fund has a higher ratio of 3.25 compared to Invesco's 3.31. Haan, this means SBI Liquid Fund offers better risk-adjusted returns. Expense ratio is also a crucial factor, and both funds have an expense ratio of 0.12%.
📊 Portfolio Diversification
Asset allocation and top holdings concentration are critical factors in evaluating fund portfolios. Both funds have a similar asset allocation of 65% T-Bills, 20% CD, 10% CP, and 5% Cash. Haan, this suggests that both funds are well-diversified. However, when we look at the top holdings, SBI Liquid Fund has a higher concentration in State Bank of India CD at 8.5% compared to Invesco's 8.5%. Lekin, it's essential to note that sector risk is low in both funds.
SIP Calculator – Compare Growth Potential
SBI Liquid Fund
₹865144.00
@6.9% annual return (3Y)
Invesco 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?
Sach ye hai, based on 5Y returns, SBI Liquid Fund has a 5Y return of 6.09% compared to Invesco's 6.11%. Haan, this suggests that Invesco Mutual Fund Liquid Fund is a better choice for long-term investments.
Q2: Is the higher risk fund worth it?
Lekin, considering the volatility and Sharpe ratio, Invesco Mutual Fund Liquid Fund is not significantly better than SBI Liquid Fund. Haan, both funds have a low risk profile, but Invesco Mutual Fund Liquid Fund has a slightly higher Sharpe ratio of 3.31 compared to SBI Liquid Fund's 3.25.
Q3: Which fund is more cost-effective?
Sach ye hai, both funds have an identical expense ratio of 0.12%. Haan, this means that there is no significant difference in terms of cost-effectiveness between the two funds.
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