Bank of India Liquid Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 4, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Bank of India Liquid Fund Direct Growth Plan has a NAV of ₹3,274.9466 as of 17 September 2026 and scheme AUM of ₹1,824 Cr. Its 1-year, 3-year and 5-year returns are 6.53%, 6.98% and 6.38%, and the fund sits in a Balanced Risk category.
Our view is that this is a short-duration, liquidity-first fund that has delivered steady compounding rather than sharp upside. The return pattern looks broadly consistent with a liquid strategy, and the portfolio is built from treasury bills, CDs and short-dated money-market instruments, which supports stability more than aggressive growth.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹3,274.9466 as of 17 Sep 2026 |
| AUM | ₹1,824 Cr |
| Expense Ratio | 0.1% |
| Launch Date | 01 Jan 2013 |
| Risk Category | Balanced Risk |
| Benchmark | Nifty 50 |
| Fund Category | Liquid |
| 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, NIL on or after 7D |
| Fund Managers | Mithraem Bharucha |
The fund is managed by Mithraem Bharucha.
Source data date: as of 17 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.53% | -3.66% |
| 3M | 1.62% | -3.71% |
| 1Y | 6.53% | -7.13% |
| 3Y | 6.98% | 5.82% |
| 5Y | 6.38% | 5.72% |
The recent numbers are more important here than a single strong month, because liquid funds are meant to be steady over time. In the last 1M and 3M windows, the fund held positive territory while the benchmark fell, which tells us the fund behaved far better than the reference index in the short term.
The longer view is also constructive. The 1Y return of 6.53% is comfortably above the benchmark’s -7.13%, and the 3Y and 5Y returns remain positive at 6.98% and 6.38%. That is a consistent compounding profile for a conservative fund, even though the benchmark comparison is not especially meaningful for a liquid strategy over long periods.
What stands out is the smoothness of the path rather than any big jump in outcomes. The pattern suggests the fund has preserved capital and generated incremental return with limited visible disruption, which is exactly the sort of behaviour many liquid-fund investors look for.
On balance, the fund’s recent behaviour does not look materially different from its 3Y and 5Y pattern: steady, measured, and built around preservation first.
Source data date: as of 17 Sep 2026
Should you BUY or HOLD Bank of India Liquid?
A fund’s past returns alone don’t tell you whether you should buy it today or continue holding it.
The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.
Already holding Bank of India Liquid? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Bank of India Liquid Fund Direct Growth Plan | 6.53% | 6.98% | 6.38% |
| Aditya Birla SL Liquid Fund Direct Growth Plan | 6.59% | 7.02% | 6.41% |
| Axis Liquid Fund Direct Growth Plan | 6.59% | 7.01% | 6.4% |
| Sundaram Liquid Fund Direct Growth Plan | 6.58% | 7% | 6.38% |
| JioBlackRock Liquid Fund Direct Growth Plan | 6.57% | Data not available | Data not available |
| Nippon India Liquid Fund Direct Growth Plan | 6.56% | 6.99% | 6.37% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
Against the peer set, the fund’s 1-year return is close to the group, but a touch below the best available figures at 6.59%. That gap is small, and in a liquid fund it is usually less important than consistency and preservation.
On the medium and longer horizons, the fund is also slightly behind the strongest available peer numbers, with 3Y and 5Y returns of 6.98% and 6.38%. The difference is modest, but the comparison suggests peers have held a marginal edge on trailing compounding while this fund has stayed in the same tight band.
The short-term and longer-term comparisons tell a similar story: the fund is competitive, but not the strongest in the available set. That makes the decision less about chasing a gap and more about whether an investor values this fund’s steady behaviour and portfolio structure.
Source data date: as of 17 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| 91 Days Tbill (MD 17/09/2026) | Treasury Bills | 5.47% |
| 91 Days Tbill (MD 29/10/2026) | Treasury Bills | 5.44% |
| Kotak Mahindra Bank Limited (24/09/2026) ** # | Certificate of Deposit | 4.09% |
| Aditya Birla Housing Finance Limited (23/11/2026) | Commercial Paper | 4.05% |
| 91 Days Tbill (MD 01/10/2026) | Treasury Bills | 2.92% |
| Indian Bank (07/09/2026) ** # | Certificate of Deposit | 2.74% |
| National Bank for Agriculture and Rural Development (11/09/2026) ** | Commercial Paper | 2.74% |
| Poonawalla Fincorp Limited (09/09/2026) ** | Commercial Paper | 2.74% |
| Small Industries Dev Bank of India (11/09/2026) ** | Commercial Paper | 2.74% |
| Canara Bank (15/09/2026) ** # | Certificate of Deposit | 2.73% |
The top 10 holdings account for approximately 35.66% of the portfolio.
To see all holdings, visit the Bank of India Liquid Fund Direct Growth Plan page
The largest holding is 91 Days Tbill (MD 17/09/2026) at 5.47%, which is a meaningful but not outsized single position for a liquid fund. The next few lines are close in size, so the portfolio does not lean too heavily on just one name.
The drop from the largest holding to the tenth is moderate rather than steep, moving from 5.47% to 2.73%. That suggests the fund is spread across several short-dated instruments rather than concentrated in a small number of very large bets.
Even with 39 disclosed holdings, the top 10 still account for 35.66% of the portfolio, so there is a clear long tail beyond the largest names. Our view is that this structure may support day-to-day liquidity management while keeping any single holding from dominating the portfolio.
Source data date: as of 17 Sep 2026
Who should invest
This fund is best suited to investors who want low-duration exposure, relatively limited volatility and a parking-style allocation rather than a return-chasing strategy. Its Balanced Risk label, steady 1Y to 5Y pattern and short-term resilience against the benchmark all point to a conservative profile.
The main trade-off is that the fund may deliver stability and liquidity management, but it is unlikely to surprise on the upside. Investors with a short to medium holding period, or those needing a place for money they do not want exposed to equity-like swings, may find the profile appropriate.
Because the portfolio is built from treasury bills, CDs and commercial paper, the return path is likely to remain restrained and orderly rather than aggressive. That makes it more suitable for capital preservation needs than for investors seeking strong growth over long horizons.
Tax and exit load
| Holding period | Tax rate | Description |
|---|---|---|
| Units held less than 1 year | 20% | Short-term capital gains tax |
| Units held more than 1 year | 12.5% | Long-term capital gains tax |
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. There is no exit load after the holding period.
Source data date: as of 17 Sep 2026
Frequently asked questions
What is the current NAV of Bank of India Liquid Fund Direct Growth Plan?
The current NAV is ₹3,274.9466 as of 17 September 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s 1-year, 3-year and 5-year returns are 6.53%, 6.98% and 6.38%.
How has the fund performed versus its benchmark?
The fund has outperformed the benchmark in each of the displayed periods. For example, the benchmark return is -7.13% over 1 year versus the fund’s 6.53%.
How does it compare with the peer funds shown here?
It is close to the peer range on 1-year returns, while a few peers show slightly higher 3-year and 5-year figures. The differences are small, which is typical in a liquid fund category.
What is the expense ratio and risk category?
The expense ratio is 0.10%, and the risk category is Balanced Risk.
Who manages the fund and what is the exit load?
The fund is managed by Mithraem Bharucha. The exit load reduces from Day 1 to Day 6 and becomes NIL on or after 7D.
Bottom line
Bank of India Liquid Fund Direct Growth Plan looks like a steady liquid-fund option rather than a high-octane return generator. Its recent numbers are consistent with its longer-term pattern, and its returns sit close to the peer range while staying comfortably positive over 1Y, 3Y and 5Y. The portfolio is anchored by treasury bills, CDs and short-dated paper, which supports a conservative profile. For investors who value stability, liquidity and measured compounding, the fund fits that brief better than an aggressive growth mandate.
Published on 18 September 2026 at 2:59 PM IST
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RIA disclosure
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.