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

HSBC Liquid Fund Direct Growth Plan has a NAV of ₹2,827.3261 as of 03 Sep 2026 and manages ₹20,046 Cr. Its 1-year, 3-year and 5-year returns are 6.51%, 6.98% and 6.35%, respectively, and the scheme carries a Balanced Risk label. Our view is that this sits in the familiar liquid-fund space: steady rather than thrilling, with returns that have stayed close to the benchmark over longer periods and a portfolio built around short-duration, high-quality money-market and debt instruments.

The fund looks most suitable for investors who want liquidity and low day-to-day volatility rather than aggressive growth. The combination of a large scheme size, a 0.12% expense ratio and a portfolio dominated by cash equivalents, CDs, CPs and treasury bills supports that profile.

Quick facts

Particular	Details
NAV	₹2,827.3261 as of 03 Sep 2026
AUM	₹20,046 Cr
Expense Ratio	0.12%
Launch Date	01 Jan 2013
Min SIP	₹1,000
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	Abhishek Iyer, Rahul Totla

The fund is managed by Abhishek Iyer and Rahul Totla.

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	6.51%	-4.4%
3Y	6.98%	5.74%
5Y	6.35%	6.27%

The recent picture is stable. Over 1 month, the fund posted a small positive return while the benchmark was negative, which suggests the portfolio has held up better in a short pullback. Over 3 months, the fund still remained positive, though it trailed the benchmark by a narrow margin.

The 1-year comparison is more striking: the fund’s 6.51% return stands well ahead of the benchmark’s negative 4.4%. That gap does not mean the fund is a high-growth product; it tells us the portfolio has been more resilient than the benchmark in the latest year.

Looking at 3 years and 5 years, the story becomes calmer. The fund’s 6.98% 3-year return is ahead of the benchmark’s 5.74%, while the 5-year return of 6.35% is close to the benchmark’s 6.27%. That tells us the longer-run compounding profile has been steady rather than sharply different from the benchmark, with the stronger 3-year stretch offset by a more ordinary 5-year outcome. The pattern of the return path also suggests limited drawdown behaviour and a fairly controlled climb rather than sharp swings.

For investors, the key takeaway is that the fund has not depended on one exceptional stretch. Its return profile looks consistent with a liquid fund that aims to preserve stability while delivering modest gains through the cycle.

Source data date: as of 03 Sep 2026

Should you BUY or HOLD HSBC 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 HSBC Liquid? Thinking of investing now?

Get your portfolio analysed for FREE by SEBI-registered Investment Adviser (RIA) through Univest MF Premium

Peer comparison

Fund	1Y return	3Y return	5Y return
HSBC Liquid Fund Direct Growth Plan	6.51%	6.98%	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. The fund sits slightly behind the strongest recent peer returns on 1-year, 3-year and 5-year figures, but the gaps are narrow. On the one peer where longer history is not available, the 1-year comparison still stays close enough to show broadly similar short-term behaviour rather than a major performance split.

The more useful read-through is that the fund’s shorter-term returns are competitive without being standout, while the 3-year and 5-year numbers cluster tightly around other liquid funds with available records. That tells us the fund’s recent profile and longer-run profile are telling a similar story: steady, controlled and only modestly different from the group of peers shown here.

Source data date: as of 03 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
TREPS	Cash & Cash Equivalents and Net Assets	7.13%
Bank of Baroda**	Certificate of Deposit	6.16%
Sidbi**	Commercial Paper	4.75%
91 Days Treasury Bill 27-Nov-2026	Treasury Bills	4.71%
Canara Bank**	Certificate of Deposit	3.91%
Union Bank of India**	Certificate of Deposit	3.8%
NABARD**	Commercial Paper	3.78%
91 Days Treasury Bill 24-Sep-2026	Treasury Bills	3.66%
Hindustan Petroleum Corporation Limited**	Commercial Paper	3.55%
Indian Bank**	Certificate of Deposit	3.42%

The top 10 holdings account for approximately 44.87% of the portfolio.

To see all holdings, visit the HSBC Liquid Fund Direct Growth Plan page

The largest holding, TREPS, is 7.13%, so no single line item dominates the portfolio on its own. The weight then steps down fairly gradually through certificates of deposit, commercial paper and treasury bills, with the tenth holding still at 3.42%. That shape suggests the fund may not be overly dependent on one issuer or one instrument type.

Because the displayed top 10 together account for 44.87% of the portfolio and there are 44 holdings disclosed in total, the portfolio looks spread across a reasonably long tail. The top positions may still matter more in day-to-day movement, but the structure is broad enough that the fund is likely to avoid excessive dependence on just a few holdings.

This mix also fits the liquid-fund profile. Cash equivalents, CDs, CPs and treasury bills are the main building blocks here, which supports short-duration stability rather than equity-style upside.

Source data date: as of 03 Sep 2026

Who should invest

This fund suits investors with a low-to-moderate tolerance for volatility who want a liquid parking place for money rather than a return-chasing product. The Balanced Risk tag, along with the short-term stability shown in the return pattern, points to a fund that is designed for steadiness first.

A horizon of days, weeks or a few months is more natural than a long equity-style holding period. The main trade-off is that the fund aims to keep movements controlled and preserve liquidity, so investors should accept modest returns that usually track the liquid-fund category rather than trying to beat it decisively.

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 applies on very short holding periods and reduces quickly through the first week. It is 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 HSBC Liquid Fund Direct Growth Plan?

The current NAV is ₹2,827.3261 as of 03 Sep 2026.

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

The 1-year return is 6.51%, the 3-year return is 6.98% and the 5-year return is 6.35%.

How does the fund compare with its benchmark?

It has stayed ahead of the benchmark over 1 year and 3 years, while the 5-year return is very close to the benchmark. The 1-month and 3-month periods were also relatively stable.

How does it compare with the peer funds shown here?

Its recent returns are close to the peer set shown here, though some peers have slightly higher 1-year, 3-year and 5-year figures. One peer has no 3-year or 5-year history available, so only its 1-year return can be compared.

What is the risk category and what kind of portfolio does it hold?

It is marked Balanced Risk. The portfolio is built mainly from TREPS, certificates of deposit, commercial paper and treasury bills, which is in line with a liquid-fund structure.

Who manages the fund and what is the exit load?

The fund is managed by Abhishek Iyer and Rahul Totla. Exit load is 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.

Bottom line

HSBC Liquid Fund Direct Growth Plan has shown a steadier long-run profile than a flashy one: the 1-year return is strong versus the benchmark, while the 3-year and 5-year outcomes remain broadly in line with the liquid-fund style. Compared with the peer set shown here, it is close rather than distinct, with only small differences in the available return figures. The portfolio is anchored by short-duration instruments and TREPS, which supports a liquidity-first approach for investors who value controlled movement over higher upside.

Published on 4 September 2026 at 10:12 AM IST

Explore mutual funds with Univest

Review mutual fund data, compare performance and explore fund insights on Univest.

Explore Univest

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.