Bank of India Liquid Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

Bank of India Liquid Fund Direct Growth Plan has a NAV of ₹3268.5022 as of 03 Sep 2026 and a scheme AUM of ₹1,728 Cr. Its 1-year, 3-year and 5-year returns are 6.54%, 6.99% and 6.37%, and the risk category is Balanced Risk. Our view is that this is a steady liquid fund rather than a high-variation return story, with outcomes that have stayed close to the benchmark over longer periods.

For investors who want liquid-category exposure with modest return consistency and a portfolio built around short-dated money-market and credit instruments, the fund can fit a short-horizon parking role. The current pattern suggests measured compounding rather than aggressive upside.

Quick facts

The fund is managed by Mithraem Bharucha.

Source data date: as of 03 Sep 2026

Performance

Recent numbers show a fairly steady pattern. The 1-month return is positive while the benchmark is negative, and the 3-month return is only slightly below the benchmark. That tells us the fund has stayed relatively stable through a short, choppy stretch rather than showing sharp swings.

The 1-year return is clearly ahead of the benchmark, which reflects stronger recent compounding than the index comparison shown here. Over 3 years, the fund also stays ahead, and the edge remains visible over 5 years, although the gap is small. That points to a fund that has kept pace with, and at times slightly surpassed, the benchmark over longer holding periods.

The time pattern is important. The fund’s longer-run trend is smoother than the benchmark’s more uneven one, especially over the 1-year window where the benchmark spent time below zero in the comparison series. For a liquid fund, that kind of steadiness matters more than dramatic jumps, because the role of the scheme is usually capital preservation with reasonable income-like growth.

Our interpretation is that the current phase does not look like a breakout story; it looks like a controlled, low-volatility return path. Investors comparing the recent 1-month and 3-month numbers with the 3-year and 5-year figures will see consistency rather than a sudden change in behaviour.

Source data date: as of 03 Sep 2026

Peer comparison

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639. On 1-year return, the fund sits just below the stronger peer readings in this set, where several peers cluster between 6.58% and 6.61%. That makes the recent gap modest rather than wide.

The longer horizon picture is also close. The fund’s 3-year return trails the better peer figures by a small margin, while the 5-year return is in line with the middle of the peer group. So the short-term comparison is slightly softer than the longer-term one, but neither period suggests a large performance separation.

Source data date: as of 03 Sep 2026

Portfolio: where your money goes

The largest holding is 91 Days Tbill (MD 28/08/2026) at 5.96%, which is not especially large for a liquid fund. The tenth holding is 2.87%, so the drop from the top position to the tenth is moderate rather than steep.

The top 10 holdings together account for approximately 36.61% of the portfolio, and the fund discloses 39 holdings in total. That combination suggests the portfolio may not be heavily concentrated in only a few positions, even though the largest names still matter because they carry the highest weights.

Most of the visible holdings are in Treasury Bills, Certificate of Deposit and Commercial Paper, which is consistent with the fund’s liquid-category role. In our view, that mix may support tighter day-to-day movement than equity-oriented schemes, while the spread across 39 holdings could help keep any single instrument from dominating the outcome.

To see all holdings, visit the Bank of India Liquid Fund Direct Growth Plan page

Source data date: as of 03 Sep 2026

Who should invest

This fund fits investors who are comfortable with a low- to moderate-volatility liquid allocation and want a short-horizon parking option rather than an equity-style growth profile. The Balanced Risk label matters here: it signals that the fund still carries market and credit considerations, even if the portfolio is built from short-dated instruments.

The 1-year, 3-year and 5-year pattern shows reasonably stable compounding, with returns staying close to the benchmark over longer periods and slightly ahead in the nearer term. That makes the fund more suitable for investors who value consistency, liquidity and a short holding period more than the chance of outsized gains.

The main trade-off is straightforward: steadier behaviour comes with more modest return potential. Investors who want a liquid fund for cash management, emergency buffers or near-term deployment may find the return pattern and portfolio structure aligned with that use.

Tax and exit load

Exit load: 0.007% for Day 1, 0.0065% on Day 2, 0.0060% on Day 3, 0.0055% on Day 4, 0.0050% on Day 5, 0.0045% on Day 6, and NIL on or after 7D.

Source data date: as of 03 Sep 2026

Frequently asked questions

What is the current NAV of Bank of India Liquid Fund Direct Growth Plan?

The current NAV is ₹3268.5022 as of 03 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?

The 1-year return is 6.54%, the 3-year return is 6.99% and the 5-year return is 6.37%.

How does the fund compare with its benchmark?

It has stayed close to the benchmark over longer periods and is ahead on the 1-year and 3-year figures shown here. The 1-month return also stayed positive while the benchmark was negative.

How does the fund compare with peer liquid funds on returns?

Its 1-year return is slightly below the higher peer figures in this group, while the 3-year and 5-year numbers remain broadly in the same band as the better peer readings. The comparison is close rather than wide.

Does the fund allow SIP investments?

No, SIP is not allowed for this fund.

Who manages the fund and what is the exit load?

The fund is managed by Mithraem Bharucha. The exit load reduces from Day 1 through Day 6 and becomes nil on or after 7D.

Bottom line

Bank of India Liquid Fund Direct Growth Plan has shown a steady return pattern, with recent numbers staying close to the longer-run trend rather than breaking away from it. The fund is broadly in line with peer liquid funds on the longer horizon and slightly softer on the most recent 1-year comparison. With a Balanced Risk label, a short-dated instrument mix and a fairly spread-out portfolio, it looks better suited to investors who want stability and liquidity more than higher-return pursuit.

Published on 4 September 2026 at 5:03 PM IST