Best Liquid Mutual Funds
Liquid funds invest in very short-term debt (maturing within 91 days). They're used to park money for days or weeks — low risk and easy to redeem, but low return too.
Top liquid mutual funds by 3Y returns
20Direct plan, Growth option — ranked by 3-year CAGR. Open a fund for NAV history, rolling returns, risk metrics and peer rank.
As of 06 Oct 2026, Aditya Birla Sun Life Liquid Fund (Direct plan, Growth option) leads liquid mutual funds on 3-year CAGR at +7.00%, followed by Edelweiss Liquid Fund at +7.00% and Axis Liquid Fund at +7.00%. Across 48 liquid mutual funds the category averaged +6.37% over three years, at an average expense ratio of 0.14%. All figures are computed from public AMFI NAV history and recomputed daily; past returns do not predict future ones.
| 1 | Aditya Birla Sun Life Liquid Fund Aditya Birla Sun Life | ★★★★☆ | +6.6% | +7.0% | +6.4% | 0.21% | ₹71,052Cr |
| 2 | Edelweiss Liquid Fund Edelweiss | ★★★★☆ | +6.5% | +7.0% | +6.4% | 0.10% | ₹13,846Cr |
| 3 | Axis Liquid Fund Axis | ★★★★★ | +6.6% | +7.0% | +6.4% | 0.13% | ₹59,483Cr |
| 4 | Sundaram Liquid Fund Sundaram | ★★★★★ | +6.6% | +7.0% | — | 0.14% | ₹8,648Cr |
| 5 | Franklin India Liquid Fund - Direct Plan - Super Franklin Templeton | ★★★★★ | +6.5% | +7.0% | +6.4% | 0.14% | ₹5,992Cr |
| 6 | DSP Liquid Fund DSP | ★★★★☆ | +6.5% | +7.0% | +6.4% | 0.12% | ₹26,732Cr |
| 7 | Nippon India Liquid Fund Nippon India | ★★★★☆ | +6.5% | +7.0% | +6.4% | 0.20% | ₹44,216Cr |
| 8 | Mahindra Manulife Liquid Fund Mahindra Manulife | ★★☆☆☆ | +6.5% | +7.0% | +6.4% | 0.15% | ₹1,392Cr |
| 9 | Groww Liquid Fund Groww | ★★★☆☆ | +6.5% | +7.0% | +6.3% | 0.11% | ₹364.82Cr |
| 10 | PGIM India Liquid Fund PGIM India | ★★★★☆ | +6.5% | +7.0% | +6.4% | 0.11% | ₹1,190Cr |
| 11 | Bank of India Liquid Fund Bank of India | ★★★☆☆ | +6.5% | +7.0% | +6.4% | 0.09% | ₹1,895Cr |
| 12 | Bajaj Finserv Liquid Fund Bajaj Finserv | ★★★★★ | +6.5% | +7.0% | — | 0.08% | ₹7,424Cr |
| 13 | Tata Liquid Fund Tata | ★★★★☆ | +6.5% | +7.0% | +6.4% | 0.23% | ₹31,934Cr |
| 14 | Union Liquid Fund Union | ★★★☆☆ | +6.5% | +7.0% | +6.4% | 0.07% | ₹7,522Cr |
| 15 | UTI - Liquid Fund UTI | ★★★★☆ | +6.5% | +7.0% | +6.4% | 0.15% | ₹30,162Cr |
| 16 | Canara Robeco Liquid Fund Canara Robeco | ★★☆☆☆ | +6.5% | +6.9% | +6.4% | 0.08% | ₹7,118Cr |
| 17 | HSBC Liquid Fund HSBC | ★★★☆☆ | +6.5% | +6.9% | +6.4% | 0.13% | ₹23,171Cr |
| 18 | Kotak Liquid Fund Kotak Mahindra | ★★★☆☆ | +6.5% | +6.9% | +6.4% | 0.15% | ₹49,988Cr |
| 19 | Invesco India Liquid Fund Invesco | ★★★☆☆ | +6.5% | +6.9% | +6.4% | 0.15% | ₹22,117Cr |
| 20 | ICICI Prudential Liquid Fund ICICI Prudential | ★★★★☆ | +6.5% | +6.9% | +6.4% | 0.20% | ₹65,398Cr |
NAV data as of 06 Oct 2026. Returns are CAGR for periods ≥1 year, computed from AMFI NAV history. Ratings are WealthTicker’s own, ranked within sub-category peers — not a SEBI or agency rating. See our methodology for every formula. This is data, not investment advice.
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Frequently asked questions
What are liquid mutual funds?
Liquid funds invest in very short-term debt (maturing within 91 days). They're used to park money for days or weeks — low risk and easy to redeem, but low return too.
Which is the best liquid fund right now?
Aditya Birla Sun Life Liquid Fund by Aditya Birla Sun Life currently ranks first among liquid mutual funds by 3-year CAGR at +7.00%. Rankings move with NAVs — past returns don't guarantee future performance.
What returns have liquid mutual funds given?
The category has averaged +5.97% over 1 year, +6.37% annualized over 3 years, +5.83% annualized over 5 years — peer averages over the live funds in the category, computed from AMFI NAV history.
How are liquid mutual funds taxed?
Debt taxation: all gains are added to your income and taxed at your slab rate, regardless of holding period (for units bought on or after 1 April 2023).