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

DSP Liquid Fund Direct Growth Plan sits at ₹4,059.0732 as of 03 Sep 2026, with a scheme AUM of ₹22,962 Cr. Its 1-year, 3-year and 5-year returns are 6.57%, 7.01% and 6.35% respectively, and the fund carries a Balanced Risk profile. Our view is that this is best read as a steady, low-volatility liquid-fund option for investors who want short-horizon parking with disciplined portfolio construction rather than sharp return spikes.

The return pattern is consistent with that role. The fund has stayed close to its benchmark over longer periods and has held up better than the benchmark over the most recent 1-year stretch, which supports its case for investors who value stability and predictable compounding more than aggressive upside.

Quick facts

Particular	Details
NAV	₹4,059.0732 as of 03 Sep 2026
AUM	₹22,962 Cr
Expense Ratio	0.1%
Launch Date	01 Jan 2013
Risk Category	Balanced Risk
Benchmark	Nifty 50
Fund Category	Equity
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 after 7D
Fund Managers	Karan Mundhra, Shalini Vasanta, Kunal Khudania

The fund is managed by Karan Mundhra, Shalini Vasanta and Kunal Khudania.

Source data date: as of 03 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.56%	-3.01%
3M	1.75%	1.95%
1Y	6.57%	-4.4%
3Y	7.01%	5.74%
5Y	6.35%	6.27%

Recent performance has been supportive. The 1-month return is modestly positive, while the benchmark has been weaker over the same window, so the fund has preserved the kind of stability investors usually want from a liquid strategy.

The 3-month picture is more balanced, with the benchmark slightly ahead, which tells us that the fund does not try to stretch for short bursts of outperformance. That is often acceptable in a cash-management style allocation, where consistency matters more than the last few basis points.

Over 1 year, the fund has clearly done better than the benchmark, which is important because the benchmark itself has been negative over that period. The fund’s 3-year and 5-year returns are also ahead of the benchmark, but the margins are not dramatic. That suggests the fund has generally delivered a modest but dependable edge rather than a sharp performance gap.

The time pattern also looks controlled rather than erratic. The curve shows gradual improvement with brief soft patches, not a wide swing profile. For investors, that matters because it indicates the fund has behaved like a parking place for money that still needs to earn something, instead of a return-seeking satellite with high variation.

Source data date: as of 03 Sep 2026

Should you BUY or HOLD DSP 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.

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Peer comparison

Fund	1Y return	3Y return	5Y return
DSP Liquid Fund Direct Growth Plan	6.57%	7.01%	6.35%
Axis Liquid Fund Direct Growth Plan	6.61%	7.03%	6.38%
Sundaram Liquid Fund Direct Growth Plan	6.61%	7.03%	6.37%
Aditya Birla SL Liquid Fund Direct Growth Plan	6.6%	7.03%	6.39%
JioBlackRock Liquid Fund Direct Growth Plan	6.6%	Data not available	Data not available
Edelweiss Liquid Fund Direct Growth Plan	6.58%	7.03%	6.37%

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.

On the recent 1-year number, the fund sits very close to the peer group leaders and is only marginally below the strongest figures available. That means its short-term showing is competitive, even if it does not separate itself from the cluster at the top.

On 3-year and 5-year returns, the fund is broadly in line with the peer set, with small differences rather than a clear gap. The short-term and longer-term comparisons tell a similar story: this is a steady fund in a tightly grouped category, where the numbers are close and the main appeal is controlled delivery rather than standout divergence.

Source data date: as of 03 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
HDFC Bank Ltd**	Certificate of Deposit	5.21%
ICICI Securities Ltd**	Commercial Paper	4.76%
National Bank for Agriculture & Rural Development**	Commercial Paper	4.58%
Union Bank of India	Certificate of Deposit	4.09%
91 Days T-Bill 03092026	Treasury Bills	3.88%
Union Bank of India**	Certificate of Deposit	3.66%
Canara Bank**	Certificate of Deposit	3.46%
Small Industries Development Bank of India**	Commercial Paper	3.02%
91 Days T-Bill 20082026	Treasury Bills	2.82%
HDFC Bank Ltd	Certificate of Deposit	2.7%

The largest holding is HDFC Bank Ltd** at 5.21%, which is a meaningful but not dominating slice. The tenth holding, HDFC Bank Ltd, is 2.7%, so the fall-off from the largest position to the tenth is measured rather than steep. That points to a portfolio where the biggest positions matter, but none of them appears large enough on its own to drive the entire result.

The top 10 holdings together account for approximately 38.18% of the portfolio, and the fund discloses 55 holdings in total. That combination suggests a fairly broad spread beyond the largest positions, even though the first few lines of the portfolio still carry noticeable weight.

We think that structure may help limit single-name dependence while still allowing the fund to hold higher-quality short-term instruments and bank exposures. Because the disclosed holdings extend well beyond the top 10, the overall profile looks more layered than concentrated, which can suit investors looking for liquidity with diversified credit and cash-management exposure.

To see all holdings, visit the DSP 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 Balanced Risk profile and want a relatively stable place for money over short to medium horizons. The 1-year, 3-year and 5-year return pattern suggests steady compounding rather than dramatic swings, and that is reinforced by the fund’s close tracking of a conservative benchmark-style return path.

The main trade-off is that the fund may not deliver standout upside in strong markets, but it can offer a more controlled experience when the goal is liquidity-oriented investing. We think it is more suitable for investors who value predictability, a modest return cushion over the benchmark, and a portfolio built from short-duration instruments and bank-backed paper rather than aggressive growth bets.

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, NIL after 7D.

Source data date: as of 03 Sep 2026

Frequently asked questions

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

The current NAV is ₹4,059.0732 as of 03 Sep 2026.

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

The 1-year return is 6.57%, the 3-year return is 7.01%, and the 5-year return is 6.35%.

How does the fund compare with its benchmark?

It has outpaced the benchmark over 1 year, 3 years and 5 years. The 3-month picture is closer, while the 1-month result is also ahead of the benchmark.

How does it compare with peer liquid funds on returns?

Its recent return profile is close to the peer cluster, with only small differences across the available 1-year, 3-year and 5-year numbers. That points to a competitive but tightly grouped performance pattern.

Does the fund have a minimum SIP requirement?

No minimum SIP amount is listed here.

Who manages the fund and what kind of portfolio does it hold?

The fund is managed by Karan Mundhra, Shalini Vasanta and Kunal Khudania. Its largest disclosed holdings are bank certificates of deposit, commercial paper and treasury bills, with the top 10 holdings accounting for approximately 38.18% of the portfolio.

Bottom line

DSP Liquid Fund Direct Growth Plan has shown a steadier recent profile than its benchmark, while its longer-term returns remain close to the benchmark with a modest edge. Against peers, the numbers sit in the same tight band rather than at an extreme, which supports the view that this is a consistency-first liquid fund. The Balanced Risk profile and the mix of bank paper, commercial paper and treasury bills make it suitable for investors who want liquidity-oriented exposure with broad, layered portfolio construction rather than pronounced return swings.

Published on 4 September 2026 at 4:57 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.