Best Liquid Funds in India (2026)
Live · updated 2026-09-16 Ranked by data, refreshed from daily NAVs
This is the complete, data-ranked list of liquids we track - every Direct-Growth scheme in the category with a meaningful track record, ordered by long-term quality (King Score). This page is recomputed from NAV data every day, so it cannot go stale, and every fund on it links to a full research page with returns, risk, SIP outcomes, holdings and manager track record.
Liquid funds park money in debt instruments maturing within 91 days - treasury bills, bank certificates of deposit, top-rated commercial paper. They are built for one job: keeping cash productive while staying almost instantly accessible. Redemptions typically hit your bank account the next business day, and most funds even offer small instant withdrawals.
Returns will roughly track short-term interest rates - do not expect equity-like numbers; expect a bit more than a savings account with minimal drama. A quirk worth knowing: liquid funds charge a small graded exit load in the first seven days, zero after. They fit emergency funds, money awaiting deployment, and the cash leg of any parking strategy. The ranking below favours the consistent, low-cost operators, which is what matters in a category where every fund holds similar paper.
Tap any column heading to sort. Every fund name links to its full review.
| # | Fund | RS | King | 3M | 6M | 1Y | 3Y CAGR | 5Y CAGR | 10Y CAGR | Sharpe | Roll 3Y | Worst fall |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Sundaram Liquid Fund (Formerly Known as Principal Cash Management Fund) | 99 | 94 | 1.7% | 3.5% | 6.7% | 7.0% | n/a | n/a | 1.41 | 7.0% | -0.0% |
| 2 | Edelweiss Liquid Fund | 96 | 92 | 1.7% | 3.5% | 6.6% | 7.0% | 6.4% | n/a | 1.46 | 5.9% | -0.1% |
| 3 | Bajaj Finserv Liquid Fund | 95 | 92 | 1.7% | 3.5% | 6.6% | 7.0% | n/a | n/a | 1.3 | n/a | -0.0% |
| 4 | Franklin India Liquid Fund - Super Institutional | 98 | 91 | 1.7% | 3.5% | 6.6% | 7.0% | 6.4% | 6.2% | 1.4 | 7.0% | -0.2% |
| 5 | PGIM India Liquid Fund | 96 | 91 | 1.7% | 3.5% | 6.6% | 7.0% | 6.4% | 6.2% | 1.43 | 6.1% | -0.1% |
| 6 | Axis Liquid Fund | 98 | 89 | 1.7% | 3.5% | 6.7% | 7.0% | 6.4% | 6.2% | 1.41 | 7.0% | -0.2% |
| 7 | BANK OF INDIA Liquid Fund | 94 | 89 | 1.7% | 3.5% | 6.6% | 7.0% | 6.4% | 6.1% | 1.17 | 6.9% | -0.2% |
| 8 | Aditya Birla Sun Life Liquid Fund | 98 | 88 | 1.7% | 3.5% | 6.7% | 7.0% | 6.4% | 6.2% | 1.45 | 7.0% | -0.2% |
| 9 | DSP Liquidity Fund | 96 | 88 | 1.7% | 3.5% | 6.6% | 7.0% | 6.4% | 6.1% | 1.37 | 6.9% | -0.2% |
| 10 | ICICI Prudential Liquid Fund | 90 | 88 | 1.7% | 3.5% | 6.5% | 7.0% | 6.3% | 6.1% | 1.29 | 6.9% | -0.2% |
| 11 | LIC MF Liquid Fund | 89 | 88 | 1.6% | 3.5% | 6.6% | 7.0% | 6.3% | 6.1% | 1.27 | 6.9% | -0.2% |
| 12 | Mirae Asset Liquid Fund | 84 | 88 | 1.6% | 3.4% | 6.5% | 7.0% | 6.3% | 6.1% | 1.28 | 6.9% | -0.2% |
| 13 | Nippon India Liquid Fund | 97 | 86 | 1.7% | 3.5% | 6.6% | 7.0% | 6.4% | 6.2% | 1.34 | 6.9% | -0.2% |
| 14 | Mahindra Manulife Liquid Fund | 96 | 86 | 1.7% | 3.5% | 6.6% | 7.0% | 6.4% | 6.2% | 1.18 | 6.1% | -0.2% |
| 15 | Groww Liquid Fund ( formerly known as Indiabulls Liquid )Fund | 92 | 86 | 1.7% | 3.4% | 6.6% | 7.0% | 6.3% | 6.1% | 1.32 | 6.9% | -0.2% |
The category returns: 1 month to 10 years𝕏 Share this statWhatsApp
Over the last 1 year, the category averaged 3.8% - the best, Axis Liquid Fund, returned 6.7% while the weakest managed -89.3%. That spread is why picking within the category matters. Over 10 years the average compounding rate is 3.9% a year, which turned ₹1 lakh into about ₹146,600.
| Period | Average | Median | Best fund | Weakest |
|---|---|---|---|---|
| 1 month | 0.5% | 0.5% | Mahindra Manulife Liquid Fund (0.6%) | 0.4% |
| 3 months | -1.0% | 1.7% | Sundaram Liquid Fund (Formerly Known as Principal Cash Management Fund) (1.7%) | -89.8% |
| 6 months | 0.7% | 3.5% | Sundaram Liquid Fund (Formerly Known as Principal Cash Management Fund) (3.5%) | -89.7% |
| 1 year | 3.8% | 6.6% | Axis Liquid Fund (6.7%) | -89.3% |
| 3 years (CAGR) | 5.3% | 7.0% | Aditya Birla Sun Life Liquid Fund (7.0%) | -50.4% |
| 5 years (CAGR) | 3.2% | 6.3% | Aditya Birla Sun Life Liquid Fund (6.4%) | -57.8% |
| 10 years (CAGR) | 3.9% | 6.1% | quant Liquid Fund (6.3%) | -33.2% |
Averages across every qualifying fund, refreshed daily. Best-fund links open that fund's full review.
What ₹1 lakh became
The same returns, translated into money - at the average pace and at the best fund's pace:
| Held for | Average pace | ₹1 lakh → (average) | ₹1 lakh → (best fund) |
|---|---|---|---|
| 1 year | 3.8% a year | ₹103,800 | ₹106,700 |
| 3 years | 5.3% a year | ₹116,800 | ₹122,500 |
| 5 years | 3.2% a year | ₹117,100 | ₹136,400 |
| 10 years | 3.9% a year | ₹146,600 | ₹184,200 |
Pre-tax, from historical returns. The averages smooth over a very bumpy ride - see the worst-fall column in the ranking above for what the journey involved.
The category by the numbers
| Funds that qualify | 35 |
| Combined assets | ₹534,523 Cr |
| Average 3-year return | 5.3% a year (best 7.0%, weakest -50.4%) |
| Average 5-year return | 3.2% a year |
| Average worst-ever fall | -5.9% (deepest: -99.0%) |
| Average expense ratio (Direct) | 0.14% |
| Largest fund by assets | SBI Liquid Fund (₹66,055 Cr) |
Put the risk number in rupees: at the average worst fall of -5.9%, ₹1 lakh temporarily becomes about ₹94,100. That is the stretch every ranked fund's investors had to sit through at some point - the ranking rewards the funds that made that wait worthwhile.
Momentum check: what is hot right now
As of 2026-09-16, 18 of the 35 funds here rate RS 90 or above (top-decile recent momentum versus peers). The strongest momentum belongs to Sundaram Liquid Fund (Formerly Known as Principal Cash Management Fund) (RS 99/99). Average return over the last 3 months: -1.0%; over 6 months: 0.7%. Momentum is a snapshot, not a ranking criterion here - but it tells you whether this corner of the market is currently in favour.
Before you pick a liquid fund: four checks
- Open the fund's page and look at the worst-fall figure in rupees - decide whether you could genuinely sit through it without selling.
- Check the rolling-return consistency, not just the trailing return: a fund that delivered in most windows beats one lucky streak.
- Compare its expense ratio against the category average shown above - a persistent 0.5% cost gap compounds into lakhs over decades.
- If you already own funds in this category, check the portfolio overlap section on the fund page - two funds owning the same stocks is one bet, not two.
Filter the entire Indian mutual fund universe by 40+ metrics - returns, consistency, drawdown, RS Rating, King Score, cost - then chart, compare and backtest anything you find.
How to read the table
RS (1-99) is recent momentum versus category peers - 99 is the hottest right now. King (0-100) is the long-term quality composite this list is ranked by. 3M/6M are recent returns; 3Y and 5Y CAGR are annualised longer records. Sharpe is return earned per unit of volatility - higher means smoother compounding. Roll 3Y is the median of every 3-year holding period in the fund's history, the fairest single return number a fund has. Worst fall is the deepest peak-to-bottom loss ever - the number that tests whether you would have stayed invested. Missing values show as n/a, usually because the fund is too young for that measurement.
The top 10, decoded𝕏 Share this statWhatsApp
- Sundaram Liquid Fund (Formerly Known as Principal Cash Management Fund) (Liquid Fund) - King Score 94/100, RS 99/99 right now. 3-year return 7.0% a year, against a worst-ever fall of 0.0% (₹1 lakh briefly ₹1 lakh). Median 3-year rolling return 7.0%, sharpe 1.41.
- Edelweiss Liquid Fund (Liquid Fund) - King Score 92/100, RS 96/99 right now. 3-year return 7.0% a year, against a worst-ever fall of 0.1% (₹1 lakh briefly ₹99,900). 5-year pace 6.4% a year, median 3-year rolling return 5.9%, sharpe 1.46.
- Bajaj Finserv Liquid Fund (Liquid Fund) - King Score 92/100, RS 95/99 right now. 3-year return 7.0% a year, against a worst-ever fall of 0.0% (₹1 lakh briefly ₹1 lakh). Sharpe 1.3.
- Franklin India Liquid Fund - Super Institutional (Liquid Fund) - King Score 91/100, RS 98/99 right now. 3-year return 7.0% a year, against a worst-ever fall of 0.2% (₹1 lakh briefly ₹99,800). 5-year pace 6.4% a year, median 3-year rolling return 7.0%, sharpe 1.4.
- PGIM India Liquid Fund (Liquid Fund) - King Score 91/100, RS 96/99 right now. 3-year return 7.0% a year, against a worst-ever fall of 0.1% (₹1 lakh briefly ₹99,900). 5-year pace 6.4% a year, median 3-year rolling return 6.1%, sharpe 1.43.
- Axis Liquid Fund (Liquid Fund) - King Score 89/100, RS 98/99 right now. 3-year return 7.0% a year, against a worst-ever fall of 0.2% (₹1 lakh briefly ₹99,800). 5-year pace 6.4% a year, median 3-year rolling return 7.0%, sharpe 1.41.
- BANK OF INDIA Liquid Fund (Liquid Fund) - King Score 89/100, RS 94/99 right now. 3-year return 7.0% a year, against a worst-ever fall of 0.2% (₹1 lakh briefly ₹99,800). 5-year pace 6.4% a year, median 3-year rolling return 6.9%, sharpe 1.17.
- Aditya Birla Sun Life Liquid Fund (Liquid Fund) - King Score 88/100, RS 98/99 right now. 3-year return 7.0% a year, against a worst-ever fall of 0.2% (₹1 lakh briefly ₹99,800). 5-year pace 6.4% a year, median 3-year rolling return 7.0%, sharpe 1.45.
- DSP Liquidity Fund (Liquid Fund) - King Score 88/100, RS 96/99 right now. 3-year return 7.0% a year, against a worst-ever fall of 0.2% (₹1 lakh briefly ₹99,800). 5-year pace 6.4% a year, median 3-year rolling return 6.9%, sharpe 1.37.
- ICICI Prudential Liquid Fund (Liquid Fund) - King Score 88/100, RS 90/99 right now. 3-year return 7.0% a year, against a worst-ever fall of 0.2% (₹1 lakh briefly ₹99,800). 5-year pace 6.3% a year, median 3-year rolling return 6.9%, sharpe 1.29.
Frequently asked questions
Which is the best liquid fund right now?
On our data-driven ranking as of 2026-09-16, Sundaram Liquid Fund (Formerly Known as Principal Cash Management Fund) scores highest (King Score 94/100). That is a description of its record versus peers, not a recommendation - rankings move as NAVs update, and the right fund depends on your goals and risk tolerance.
Are liquid funds risky?
The category's numbers answer this better than adjectives: the average fund here has seen a worst-ever fall of -5.9%, and the deepest fall in the category is -99.0%. If a temporary loss of that size would make you sell, this category (or its allocation size in your portfolio) deserves a rethink. Risk here is not hypothetical - it is a matter of record.
What returns have liquid funds given historically?
Across the 35 funds we track in this category, the average 3-year return is 5.3% a year, with the best at 7.0% and the weakest at -50.4%. Over 5 years the category average is 3.2% a year. These are records, not projections - the next three years owe nothing to the last three.
What is the average 1-year return of liquid funds right now?
As of 2026-09-16, the 35 qualifying funds averaged 3.8% over the last year (median 6.6%). The best, Axis Liquid Fund, returned 6.7%; the weakest returned -89.3%. One year is weather, not climate - check the 5 and 10 year columns before drawing conclusions.
Which liquid fund gave the highest return in the last 10 years?
quant Liquid Fund leads with 6.3% a year over 10 years - ₹1 lakh became about ₹184,200 pre-tax. The average across funds with a 10-year record is 3.9% a year. A decade-long record says a lot about the past and nothing certain about the next decade.
How is this list ranked?
Funds are ordered by King Score - a 0-100 composite of 3-year returns, rolling consistency, worst drawdown and Sharpe, each measured against category peers. The full formulas are public - see our methodology page. No fund pays to be here and rankings cannot be bought.
Should I invest in the #1 fund on this list?
We cannot tell you that - MF Terminal is descriptive research, not investment advice. A top rank says the past record was strong versus peers. Read the fund's full page, check the drawdowns you would have to sit through, and decide against your own horizon.
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All figures pre-tax, from AMFI NAV history. Rankings are descriptive and change with the data. Nothing here is investment advice or a recommendation to buy, sell or hold any fund. Past performance does not guarantee future returns.