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Best Liquid Debt Funds in 2025

What are Debt: Liquid funds?


Funds Included All Fund Returns
(3Y annualised)
Top 5 fund Returns
(3Y annualised)
42 4.48% 7.1%

This fund category is an example of Debt Scheme funds.

Debt funds invest primarily in fixed-income securities such as government bonds, corporate bonds, debentures, treasury bills, and money market instruments. They aim to provide steady income and capital preservation with lower volatility compared to equity funds. Depending on portfolio maturity and credit quality, debt funds range from liquid and short-duration funds to gilt and dynamic bond funds. Suitable for investors with moderate to low risk appetite seeking regular income.

Trailing returns for Debt: Liquid funds

These are average returns over the indicated period.

Monthly trailing returns:
Nov-2025Oct-2025Sep-2025Aug-2025Jul-2025Jun-2025
0.37%0.52%0.43%0.47%0.48%0.52%

Quarterly trailing returns:
2025Q42025Q32025Q22025Q12024Q42024Q3
0.88%1.39%1.63%1.78%1.74%1.77%

Yearly trailing returns:
202520242023202220212020
5.77%7.22%7.00%4.64%3.26%4.10%

Rolling returns for Debt: Liquid funds

SIP
10% Step-up SIP
Lump sum
SWP
10% Step-up SWP
Metric Any 1Y SIPAny 2Y SIPAny 3Y SIPAny 5Y SIPAny 7Y SIPAny 10Y SIP
Minimum3.68%5.54%4.38%4.9%5.7%5.94%
Median6.54%6.52%6.46%6.08%5.88%5.97%
Maximum8.37%7.19%7.76%7.22%6.34%6.0%
Risk1.33%0.5%0.97%0.73%0.18%0.02%
Sharpe Ratio-34.94%-97.34%-55.27%-126.08%-614.63%-6093.18%
Data as of 14-Dec-2025
Metric Any 1Y SIPAny 2Y 目↑ SIPAny 3Y 目↑ SIPAny 5Y 目↑ SIPAny 7Y 目↑ SIPAny 10Y 目↑ SIP
Minimum3.68%6.15%6.31%6.29%5.98%6.0%
Median6.54%6.57%6.69%6.49%6.08%6.03%
Maximum8.37%6.87%6.92%6.69%6.3%6.06%
Risk1.33%0.2%0.17%0.13%0.08%0.02%
Sharpe Ratio-34.94%-214.73%-178.63%-407.43%-1126.12%-4565.45%
Data as of 14-Dec-2025
Metric Any 1YAny 2YAny 3YAny 5YAny 7YAny 10Y
Minimum3.99%5.74%4.4%5.23%5.71%6.22%
Median6.67%6.7%6.4%5.76%5.8%6.29%
Maximum8.4%7.39%7.91%7.23%6.09%6.36%
Risk1.21%0.49%1.05%0.65%0.11%0.04%
Sharpe Ratio-27.72%-60.42%-57.09%-189.93%-1050.0%-1874.75%
Data as of 14-Dec-2025
Metric Any 1Y SWPAny 2Y SWPAny 3Y SWPAny 5Y SWPAny 7Y SWPAny 10Y SWP
Minimum4.1%6.06%4.33%4.54%5.4%6.5%
Median6.87%7.16%6.67%5.86%5.85%6.67%
Maximum8.81%7.87%8.38%7.48%6.32%6.86%
Risk1.25%0.54%1.17%0.9%0.27%0.11%
Sharpe Ratio-10.48%29.95%-28.31%-127.15%-430.6%-310.47%
Data as of 14-Dec-2025
Metric Any 1Y SWPAny 2Y 目↑ SWPAny 3Y 目↑ SWPAny 5Y 目↑ SWPAny 7Y 目↑ SWPAny 10Y 目↑ SWP
Minimum4.1%6.85%6.72%4.97%5.36%6.27%
Median6.87%7.28%7.11%5.23%5.53%6.38%
Maximum8.81%7.6%7.41%5.55%5.81%6.51%
Risk1.25%0.21%0.2%0.18%0.14%0.07%
Sharpe Ratio-10.48%133.02%56.2%-958.69%-1057.45%-874.59%
Data as of 14-Dec-2025

Fundwise SIP, Lumpsum and SWP returns


Rolling SIP returns (less than 1 year)
Fund Any 1M SIPAny 3M SIPAny 6M SIP
SBI Liquid Fund5.95%5.91%5.86%
HSBC Liquid Fund5.96%5.94%5.91%
HDFC Liquid Fund7.14%7.16%7.14%
JM Liquid Withheld Brokerage Ief Fund0.0%0.0%0.0%
LIC MF Liquid Fund7.2%7.18%7.18%
Parag Parikh Liquid Fund5.86%5.83%5.79%
ITI Liquid Fund6.01%5.92%5.96%
Kotak Liquid Fund7.14%7.16%7.19%
Nippon India Liquid Fund6.04%5.99%5.95%
360 One Liquid Fund5.88%5.82%5.8%
Trustmf Liquid Fund5.95%5.93%5.88%
Bandhan Liquid Fund6.06%5.98%5.92%
Baroda BNP Paribas Liquid Fund6.07%5.97%5.91%
UTI Liquid Cash Fund5.99%5.98%5.95%
Franklin India Liquid Super Institutional Fund5.97%5.98%5.97%
Sundaram Liquid Fund6.0%5.97%5.94%
Unifi Liquid Fund6.07%6.02%5.91%
Mahindra Manulife Liquid Fund6.18%6.08%6.01%
Aditya Birla Sun Life Liquid Fund6.04%6.03%5.99%
Canara Robeco Liquid Fund6.16%6.04%6.0%
Whiteoak Capital Liquid Fund5.97%5.86%5.83%
Tata Liquid Fund7.23%7.23%7.23%
DSP Liquidity Fund6.04%6.01%5.97%
The Wealth Company Liquid Fund6.15%0%0%
Edelweiss Liquid Fund6.77%6.76%6.74%
ICICI Prudential Liquid Fund5.94%5.93%5.89%
Invesco India Liquid Fund6.0%5.96%5.91%
Bank India Liquid Fund6.02%5.99%5.93%
Bajaj Finserv Liquid Fund6.06%5.96%5.92%
Quantum Liquid Fund5.77%5.68%5.61%
Quant Liquid Fund5.88%5.87%5.89%
Axis Liquid Fund6.01%6.0%5.97%
Capitalmind Liquid Fund0%0%0%
Union Liquid Fund6.09%6.03%5.99%
Navi Liquid Fund7.07%7.0%6.98%
Shriram Liquid Fund6.17%6.14%6.05%
Jioblackrock Liquid Fund5.98%5.95%0%
JM Liquid Fund5.95%5.9%5.87%
PGIM India Liquid Fund5.93%5.96%5.94%
Mirae Asset Liquid Fund6.0%5.98%5.94%
Groww Liquid Fund5.91%6.0%5.95%
Motilal Oswal Liquid Fund5.95%5.8%5.72%
Data as of 14-Dec-2025

Note: Returns for less than one year are annualised. However, given the nature of the calculation, XIRR for such periods are not meaningful.

Rolling SIP returns (1 year or more):

Fund Any 1Y SIPAny 3Y SIPAny 5Y SIP
SBI Liquid Fund6.6%6.9%6.46%
HSBC Liquid Fund7.09%6.95%6.1%
HDFC Liquid Fund7.06%6.93%6.04%
JM Liquid Withheld Brokerage Ief Fund0.0%0.0%0%
LIC MF Liquid Fund7.11%6.94%6.06%
Parag Parikh Liquid Fund6.18%6.64%5.78%
ITI Liquid Fund5.87%5.96%5.97%
Kotak Liquid Fund7.08%6.94%6.06%
Nippon India Liquid Fund6.83%6.99%6.52%
360 One Liquid Fund6.23%6.68%5.69%
Trustmf Liquid Fund6.28%6.88%0%
Bandhan Liquid Fund7.1%6.95%6.21%
Baroda BNP Paribas Liquid Fund7.2%6.92%6.28%
UTI Liquid Cash Fund6.4%6.96%6.57%
Franklin India Liquid Super Institutional Fund6.97%7.12%6.35%
Sundaram Liquid Fund6.42%6.97%0%
Unifi Liquid Fund0%0%0%
Mahindra Manulife Liquid Fund6.79%6.21%5.32%
Aditya Birla Sun Life Liquid Fund7.07%7.02%6.27%
Canara Robeco Liquid Fund6.74%6.99%6.58%
Whiteoak Capital Liquid Fund6.19%6.83%6.41%
Tata Liquid Fund7.16%6.93%6.02%
DSP Liquidity Fund6.97%6.97%5.95%
The Wealth Company Liquid Fund0%0%0%
Edelweiss Liquid Fund6.74%5.78%5.34%
ICICI Prudential Liquid Fund7.02%6.99%6.17%
Invesco India Liquid Fund7.04%7.0%6.26%
Bank India Liquid Fund7.12%7.06%6.13%
Bajaj Finserv Liquid Fund7.37%0%0%
Quantum Liquid Fund6.98%6.6%6.98%
Quant Liquid Fund6.84%6.6%6.06%
Axis Liquid Fund6.4%6.98%6.6%
Capitalmind Liquid Fund0%0%0%
Union Liquid Fund6.73%5.36%5.31%
Navi Liquid Fund6.95%6.66%5.88%
Shriram Liquid Fund6.06%0%0%
Jioblackrock Liquid Fund0%0%0%
JM Liquid Fund6.32%6.87%6.51%
PGIM India Liquid Fund6.42%5.19%4.94%
Mirae Asset Liquid Fund6.57%5.29%5.03%
Groww Liquid Fund6.45%6.95%6.5%
Motilal Oswal Liquid Fund6.0%5.68%6.19%
Data as of 14-Dec-2025
SIP Calculator


Rolling Lumpsum returns
Fund Any 1YAny 3YAny 5Y
SBI Liquid Fund6.65%7.02%5.79%
HSBC Liquid Fund7.38%7.0%5.64%
HDFC Liquid Fund7.07%6.73%5.71%
JM Liquid Withheld Brokerage Ief Fund0.0%0.0%0%
LIC MF Liquid Fund7.14%6.81%5.65%
Parag Parikh Liquid Fund6.41%5.28%5.16%
ITI Liquid Fund5.01%5.02%5.06%
Kotak Liquid Fund7.1%6.75%5.73%
Nippon India Liquid Fund7.16%7.08%5.82%
360 One Liquid Fund6.51%6.35%5.3%
Trustmf Liquid Fund6.62%7.02%0%
Bandhan Liquid Fund7.08%6.89%5.7%
Baroda BNP Paribas Liquid Fund7.16%6.98%5.65%
UTI Liquid Cash Fund6.7%7.08%5.83%
Franklin India Liquid Super Institutional Fund7.0%7.1%6.75%
Sundaram Liquid Fund6.86%7.09%0%
Unifi Liquid Fund0%0%0%
Mahindra Manulife Liquid Fund6.91%6.06%5.46%
Aditya Birla Sun Life Liquid Fund7.01%7.05%6.7%
Canara Robeco Liquid Fund7.2%7.09%5.8%
Whiteoak Capital Liquid Fund6.57%5.68%5.48%
Tata Liquid Fund7.16%6.77%5.64%
DSP Liquidity Fund7.37%6.96%5.83%
The Wealth Company Liquid Fund0%0%0%
Edelweiss Liquid Fund6.76%5.75%5.41%
ICICI Prudential Liquid Fund7.17%7.01%5.79%
Invesco India Liquid Fund7.13%6.88%5.8%
Bank India Liquid Fund7.38%7.05%5.85%
Bajaj Finserv Liquid Fund7.44%0%0%
Quantum Liquid Fund7.0%6.69%7.31%
Quant Liquid Fund6.84%6.44%5.89%
Axis Liquid Fund6.74%7.11%5.85%
Capitalmind Liquid Fund0%0%0%
Union Liquid Fund6.75%5.71%5.86%
Navi Liquid Fund6.96%6.62%5.61%
Shriram Liquid Fund6.35%0%0%
Jioblackrock Liquid Fund0%0%0%
JM Liquid Fund6.61%7.0%5.8%
PGIM India Liquid Fund6.49%5.59%5.41%
Mirae Asset Liquid Fund6.56%5.74%5.61%
Groww Liquid Fund6.77%7.0%5.72%
Motilal Oswal Liquid Fund6.26%5.94%5.46%
Data as of 14-Dec-2025

Rolling SWP returns
Fund Any 1Y SWPAny 3Y SWPAny 5Y SWP
SBI Liquid Fund6.95%7.15%4.98%
HSBC Liquid Fund7.2%6.99%6.46%
HDFC Liquid Fund7.13%6.88%6.44%
JM Liquid Withheld Brokerage Ief Fund0%0%0%
LIC MF Liquid Fund7.16%6.99%6.51%
Parag Parikh Liquid Fund6.21%5.58%4.72%
ITI Liquid Fund5.03%4.13%4.14%
Kotak Liquid Fund7.15%6.93%6.47%
Nippon India Liquid Fund7.07%7.18%5.61%
360 One Liquid Fund6.33%6.17%4.81%
Trustmf Liquid Fund6.95%7.15%0%
Bandhan Liquid Fund7.11%6.93%6.14%
Baroda BNP Paribas Liquid Fund7.19%7.08%6.32%
UTI Liquid Cash Fund7.03%7.19%5.03%
Franklin India Liquid Super Institutional Fund7.05%7.1%7.29%
Sundaram Liquid Fund7.1%7.2%0%
Unifi Liquid Fund0%0%0%
Mahindra Manulife Liquid Fund7.0%6.19%5.55%
Aditya Birla Sun Life Liquid Fund7.03%7.06%7.27%
Canara Robeco Liquid Fund7.08%7.21%5.3%
Whiteoak Capital Liquid Fund6.13%4.72%4.57%
Tata Liquid Fund7.2%6.99%6.49%
DSP Liquidity Fund7.21%7.03%6.39%
The Wealth Company Liquid Fund0%0%0%
Edelweiss Liquid Fund6.8%5.76%5.3%
ICICI Prudential Liquid Fund7.25%6.99%6.1%
Invesco India Liquid Fund7.12%6.98%6.48%
Bank India Liquid Fund7.1%7.03%6.35%
Bajaj Finserv Liquid Fund7.34%0%0%
Quantum Liquid Fund6.97%6.83%7.15%
Quant Liquid Fund7.07%6.64%6.19%
Axis Liquid Fund7.09%7.22%5.03%
Capitalmind Liquid Fund0%0%0%
Union Liquid Fund6.74%6.03%6.46%
Navi Liquid Fund6.95%6.83%6.49%
Shriram Liquid Fund6.65%0%0%
Jioblackrock Liquid Fund0%0%0%
JM Liquid Fund6.94%7.13%5.0%
PGIM India Liquid Fund6.51%6.96%6.33%
Mirae Asset Liquid Fund6.62%6.92%6.44%
Groww Liquid Fund7.1%7.04%4.86%
Motilal Oswal Liquid Fund5.58%5.19%4.58%
Data as of 14-Dec-2025

SIP and SWP returns with step-up


Rolling SIP returns with 10% step-up
Fund Any 1Y SIPAny 3Y 目↑ SIPAny 5Y 目↑ SIP
SBI Liquid Fund6.6%6.87%6.55%
HSBC Liquid Fund7.09%6.94%6.61%
HDFC Liquid Fund7.06%6.93%6.07%
JM Liquid Withheld Brokerage Ief Fund0.0%0.0%0%
LIC MF Liquid Fund7.11%6.9%6.58%
Parag Parikh Liquid Fund6.18%6.62%6.28%
ITI Liquid Fund5.87%6.76%6.41%
Kotak Liquid Fund7.08%6.95%6.09%
Nippon India Liquid Fund6.83%6.95%6.62%
360 One Liquid Fund6.23%6.74%6.42%
Trustmf Liquid Fund6.28%6.87%0%
Bandhan Liquid Fund7.1%6.91%6.58%
Baroda BNP Paribas Liquid Fund7.2%6.91%6.6%
UTI Liquid Cash Fund6.4%6.93%6.61%
Franklin India Liquid Super Institutional Fund6.97%6.96%6.61%
Sundaram Liquid Fund6.42%6.96%0%
Unifi Liquid Fund0%0%0%
Mahindra Manulife Liquid Fund6.79%6.97%6.64%
Aditya Birla Sun Life Liquid Fund7.07%6.98%6.65%
Canara Robeco Liquid Fund6.74%6.96%6.61%
Whiteoak Capital Liquid Fund6.19%6.82%6.45%
Tata Liquid Fund7.16%6.94%6.05%
DSP Liquidity Fund6.97%6.95%6.61%
The Wealth Company Liquid Fund0%0%0%
Edelweiss Liquid Fund6.74%6.97%6.64%
ICICI Prudential Liquid Fund7.02%6.91%6.58%
Invesco India Liquid Fund7.04%6.91%6.58%
Bank India Liquid Fund7.12%6.94%6.62%
Bajaj Finserv Liquid Fund7.37%0%0%
Quantum Liquid Fund6.98%6.57%6.28%
Quant Liquid Fund6.84%6.85%6.57%
Axis Liquid Fund6.4%6.97%6.63%
Capitalmind Liquid Fund0%0%0%
Union Liquid Fund6.73%6.96%6.63%
Navi Liquid Fund6.95%6.66%5.9%
Shriram Liquid Fund6.06%0%0%
Jioblackrock Liquid Fund0%0%0%
JM Liquid Fund6.32%6.85%6.54%
PGIM India Liquid Fund6.42%6.96%6.63%
Mirae Asset Liquid Fund6.57%6.94%6.61%
Groww Liquid Fund6.45%6.94%6.54%
Motilal Oswal Liquid Fund6.0%6.55%6.22%
Data as of 14-Dec-2025

Rolling SWP returns with 10% step-up
Fund Any 1Y SWPAny 3Y 目↑ SWPAny 5Y 目↑ SWP
SBI Liquid Fund6.95%7.16%5.08%
HSBC Liquid Fund7.2%7.21%5.11%
HDFC Liquid Fund7.13%6.88%6.4%
JM Liquid Withheld Brokerage Ief Fund0%0%0%
LIC MF Liquid Fund7.16%7.19%5.12%
Parag Parikh Liquid Fund6.21%6.79%4.83%
ITI Liquid Fund5.03%6.91%4.88%
Kotak Liquid Fund7.15%6.92%6.43%
Nippon India Liquid Fund7.07%7.21%5.11%
360 One Liquid Fund6.33%7.02%4.88%
Trustmf Liquid Fund6.95%7.16%0%
Bandhan Liquid Fund7.11%7.2%5.08%
Baroda BNP Paribas Liquid Fund7.19%7.2%5.14%
UTI Liquid Cash Fund7.03%7.21%5.11%
Franklin India Liquid Super Institutional Fund7.05%7.17%5.09%
Sundaram Liquid Fund7.1%7.21%0%
Unifi Liquid Fund0%0%0%
Mahindra Manulife Liquid Fund7.0%7.24%5.15%
Aditya Birla Sun Life Liquid Fund7.03%7.27%5.14%
Canara Robeco Liquid Fund7.08%7.21%5.06%
Whiteoak Capital Liquid Fund6.13%7.06%4.83%
Tata Liquid Fund7.2%6.99%6.44%
DSP Liquidity Fund7.21%7.19%5.1%
The Wealth Company Liquid Fund0%0%0%
Edelweiss Liquid Fund6.8%7.23%5.17%
ICICI Prudential Liquid Fund7.25%7.19%5.08%
Invesco India Liquid Fund7.12%7.17%5.08%
Bank India Liquid Fund7.1%7.21%5.11%
Bajaj Finserv Liquid Fund7.34%0%0%
Quantum Liquid Fund6.97%6.9%4.88%
Quant Liquid Fund7.07%7.06%5.47%
Axis Liquid Fund7.09%7.23%5.12%
Capitalmind Liquid Fund0%0%0%
Union Liquid Fund6.74%7.23%5.13%
Navi Liquid Fund6.95%6.82%6.43%
Shriram Liquid Fund6.65%0%0%
Jioblackrock Liquid Fund0%0%0%
JM Liquid Fund6.94%7.13%5.1%
PGIM India Liquid Fund6.51%7.24%5.13%
Mirae Asset Liquid Fund6.62%7.21%5.13%
Groww Liquid Fund7.1%7.06%4.95%
Motilal Oswal Liquid Fund5.58%6.77%4.76%
Data as of 14-Dec-2025

Note:N.A. in returns indicate that the fund does not have sufficient history.

Tables have been updated on 14-Dec-2025

How are Debt: Liquid funds taxed on selling?

Debt Funds
Tax for FY2025-26
STCG Rate LTCG Eligibility LTCG Rate
Bought Before
1 Apr 2023
Slab After 2Y 12.5%
Bought After
31 Mar 2023
Slab Always STCG Slab

Note:

  • Dividends from mutual funds (called IDCW or Income Distribution cum Capital Withdrawal funds), are added to the income of the investor and taxed at their highest applicable (slab) rate.
  • Cess and surcharge (if applicable) is to be applied to taxes from mutual funds from selling and dividends.
  • Switches, SWP and selling any lump sum amount are taxable as per the table above.

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Disclaimer: Mutual fund investments are subject to market risks, read all scheme related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to the availability and adequacy of distributable surplus. Investors are requested to review the prospectus carefully and obtain expert professional advice with regard to specific legal, tax and financial implications of the investment/participation in the scheme.

Note: NAVs and returns updated on 14-Dec-2025.