SBI Liquid Fund vs SBI ELSS Tax Saver Fund
Side-by-side comparison of returns, risk, expenses, holdings and performance. AI-powered insights included.
3Y Return
6.89%
3Y Return
19.98%
Dekho, today we are comparing two popular funds: SBI Liquid Fund and SBI ELSS Tax Saver Fund. Both cater to different investment objectives. SBI Liquid Fund is a low-risk, liquid fund suitable for short-term goals, while SBI ELSS Tax Saver Fund is an equity-linked savings scheme (ELSS) for long-term wealth creation. Chaliye, let's explore which fund is better for you.
| Parameter | ASBI Liquid Fund - Direct Plan - Growth | BSBI ELSS Tax Saver Fund - Direct Plan - Growth |
|---|---|---|
| Fund House | SBI Mutual Fund | SBI Mutual Fund |
| Category | Liquid | ELSS |
| NAV (₹) | 4351.16 | 462.73 |
| AUM (₹ Cr) | 7.12 Lac Cr | 3.11 Lac Cr |
| Expense Ratio (%) | 0.12% | 0.93% |
| Riskometer | Low | Very High |
| Volatility | 0.12 | 15.53 |
| Sharpe Ratio | 3.25 | 0.87 |
| 1 Year Return (%) | 6.15% | -1.1% |
| 3 Year Return (%) | 6.89% | 19.98% |
| 5 Year Return (%) | 6.09% | 17.91% |
| Since Launch (%) | 6.79% | 15.42% |
| Min SIP (₹) | 500 | 500 |
| Min Lumpsum (₹) | 1000 | 1000 |
| Launch Date | 1 January 2013 | 2 January 2013 |
| Exit Load | Nil | Nil |
| Fund Manager | Ruchit Mehta; Ardhendu Bhattacharya (3.2 years yrs) | Milind Agrawal (0.4 years yrs) |
| Benchmark | NIFTY Liquid Index | Nifty 500 TRI |
| Top 3 Holdings | State Bank of India CD (8.5%), HDFC Bank CD (7.2%), Reliance Industries T-Bills (6.8%) | ICICI Bank Ltd. (8.95%), Reliance Industries Ltd. (5.19%), Kotak Mahindra Bank Ltd. (4.9%) |
| Asset Allocation | T-Bills: 65.00% | CD: 20.00% | CP: 10.00% | Cash: 5.00% | Equity: 96.05% | T-Bills: 0.12% |
| Portfolio Turnover | 260% | 37% |
🤖 AI Verdict – Which is Better?
Sach ye hai, for long-term wealth creation, SBI ELSS Tax Saver Fund emerges as the winner. Its 3Y return of 19.98% is significantly higher than SBI Liquid Fund's 6.89%. Lekin, keep in mind that ELSS comes with a higher risk level. The lower expense ratio of 0.93% compared to Liquid Fund's 0.12% is also a plus.
Why consider SBI Liquid Fund?
- Expense ratio: 0.12%
- 3Y return: 6.89%
- AUM: 7.12 Lac Cr
- Sharpe Ratio: 3.25
Why consider SBI ELSS Tax Saver Fund?
- Expense ratio: 0.93%
- 3Y return: 19.98%
- AUM: 3.11 Lac Cr
- Sharpe Ratio: 0.87
📈 SIP Suitability
SBI ELSS Tax Saver Fund is more suitable for a monthly SIP for 10+ years. Its consistency in returns, as seen in the 3Y return, makes it a better choice for a long-term investment. Chaliye, you can ride the market's ups and downs with this fund.
⚠️ Risk & Cost Analysis
Riskometer, volatility, and Sharpe ratio indicate that SBI ELSS Tax Saver Fund has a higher risk level compared to SBI Liquid Fund. However, its risk-adjusted returns are better, as seen in its Sharpe ratio of 0.87. The expense ratio of 0.93% is higher, but the potential returns justify it.
📊 Portfolio Diversification
SBI Liquid Fund has a diversified portfolio with 65% T-Bills, 20% CD, 10% CP, and 5% cash. Its top holdings are concentrated in State Bank of India CD (8.5%), HDFC Bank CD (7.2%), and Reliance Industries T-Bills (6.8%). SBI ELSS Tax Saver Fund has a higher equity allocation of 96.05%, making it more market-sensitive. Its top holdings are ICICI Bank Ltd. (8.95%), Reliance Industries Ltd. (5.19%), and Kotak Mahindra Bank Ltd. (4.9%).
SIP Calculator – Compare Growth Potential
SBI Liquid Fund
₹865144.00
@6.9% annual return (3Y)
SBI ELSS Tax Saver Fund
₹1909339.14
@20.0% 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?
SBI ELSS Tax Saver Fund gives better returns in the long run, with a 5Y return of 17.91% compared to SBI Liquid Fund's 6.09%.
Q2: Is the higher risk fund worth it?
No, the higher risk fund may not be worth it if you're risk-averse. SBI ELSS Tax Saver Fund has a higher volatility of 15.53 compared to SBI Liquid Fund's 0.12. However, its Sharpe ratio of 0.87 indicates that it offers better risk-adjusted returns.
Q3: Which fund is more cost-effective?
SBI Liquid Fund is more cost-effective with an expense ratio of 0.12% compared to SBI ELSS Tax Saver Fund's 0.93%.
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