Liquid Fund Comparison: Axis vs Nippon India on Returns and Costs

Liquid mutual funds stayed popular with cautious investors who wanted low risk and quick access. Axis Liquid Fund and Nippon India Liquid Fund led recent category returns. Both generated close to 7% over three years. The gap between the two remained narrow, as portfolios used similar short-term debt instruments.

These schemes suited investors who usually relied on fixed deposits or savings accounts. Liquid funds parked money in treasury bills and commercial papers. Such short-duration instruments were seen as relatively safe. Investors also used them to hold emergency cash or short-term surplus, while aiming for better yields.

The key disclosed metrics showed Axis Liquid Fund as the larger and lower-cost option. Nippon India Liquid Fund carried a higher regular-plan expense ratio. Both tracked the same benchmark, NIFTY Liquid Index A‑I. Their risk labels differed slightly, with Axis marked "Low to Moderate" and Nippon marked "Moderate".

Particulars	Axis Liquid Fund	Nippon India Liquid Fund
Category	Liquid Fund	Liquid Fund
Benchmark	NIFTY Liquid Index A‑I	NIFTY Liquid Index A‑I
Riskometer	Low to Moderate	Moderate
AUM (Closing)	₹62,841.16 crore	₹36,609.54 crore
Expense Ratio (Regular Plan)	0.21%	0.34%
3‑Year Return (Regular)	7.24%	7.19%
Since Inception Return	6.97%	6.84%

Sources: AMFI data as on June 21, 2026.

On three-year performance, Axis Liquid Fund edged Nippon India Liquid Fund by a small margin. Since inception, Axis also reported a slightly higher return. The limited spread reflected similar underlying assets and short maturities. For many investors, this meant the choice depended more on cost and comfort than returns.

Liquid Fund portfolio and costs: key differences

Axis Liquid Fund’s regular-plan expense ratio stood at 0.21%, below Nippon India Liquid Fund’s 0.34%. Lower costs can leave more income with investors. Both funds focused on high-quality debt and money market exposure. Axis listed holdings from the Reserve Bank of India, NABARD, Union Bank of India, HDFC Bank and Bank of Baroda.

Nippon India Liquid Fund listed holdings from the Reserve Bank of India, HDFC Bank, SIDBI, NABARD and Bank of Baroda. Both funds were used for safety and liquidity, rather than long-term wealth goals. As per AMFI, the primary focus of short-term debt funds like Liquid Funds is coupon income.

AMFI also noted these funds must be checked for credit risk taken for higher coupon income. Investors seeking a larger fund and lower costs could lean towards Axis Liquid Fund. Investors valuing Nippon India Liquid Fund’s long record could prefer that option. Either way, both options fit parking short-term money with easy access.