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

Nippon India Liquid Fund Direct Growth Plan sits in the liquid category with a current NAV of ₹6948.5189 as of 03 Sep 2026 and a scheme AUM of ₹41,345 Cr. Its 1-year, 3-year and 5-year returns are 6.57%, 7.01% and 6.36%, and the fund is tagged as Medium Risk. Our view is that this is a steady cash-management style option rather than a return-chasing one, with performance that has stayed close to the benchmark over longer horizons and a portfolio built around short-duration, high-quality money-market instruments.

For investors who want liquidity, relatively controlled swings and a short parking horizon, the fund’s profile is more relevant than a search for outsized gains. The portfolio is led by treasury bills, commercial paper, certificate of deposit exposure and reverse repo, which supports a conservative liquidity-oriented setup.

Quick facts

Particular	Details
NAV	₹6,948.5189 as of 03 Sep 2026
AUM	₹41,345 Cr
Expense Ratio	0.2%
Launch Date	01 Jan 2013
Min SIP	₹100
Risk Category	Medium 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	Vikash Agarwal

The fund is managed by Vikash Agarwal.

Source data date: as of 03 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	0.57%	-3.01%
3M	1.76%	1.95%
1Y	6.57%	-4.4%
3Y	7.01%	5.74%
5Y	6.36%	6.27%

The recent picture is mixed but still constructive. Over 1 month and 1 year, the fund stayed positive while the benchmark was negative, which points to more stable short-term behaviour than the comparison index. Over 3 months, both were positive and close together, so the gap was small rather than decisive.

The longer horizon matters more for a liquid fund, and here the pattern is steady. The 3-year return of 7.01% is ahead of the benchmark’s 5.74%, while the 5-year return of 6.36% is slightly above the benchmark’s 6.27%. That tells us the fund has broadly kept pace with or modestly ahead of the reference index over time, rather than relying on a single strong year.

What stands out is the smoother path. The time pattern shows recovery after weaker stretches and then a gradual climb rather than sharp jumps. That kind of shape fits a liquid fund, where consistency and capital preservation matter more than aggressive upside. In that context, the fund’s return record looks disciplined and aligned with its category.

Because the benchmark turns negative over the 1-year period while the fund remains positive, the recent comparison is favourable. At the same time, the 5-year edge is small, so our view is that the fund’s longer-run case rests on stability and reliability rather than a large performance gap.

Source data date: as of 03 Sep 2026

Should you BUY or HOLD Nippon 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.

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Peer comparison

Fund	1Y return	3Y return	5Y return
Nippon India Liquid Fund Direct Growth Plan	6.57%	7.01%	6.36%
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’s 1-year return is close to the better peer readings, but it does not separate itself meaningfully from the group. The 3-year and 5-year returns are also tightly clustered with the better available peer numbers, which suggests the fund has been broadly competitive without a wide gap in either direction.

Short-term and long-term comparisons tell slightly different stories. In the near term, the fund is comfortably positive, but a few peers show a marginally higher 1-year figure. Over 3 years and 5 years, the fund remains close to the strongest available figures, so the longer picture is one of consistency rather than standout outperformance.

Source data date: as of 03 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
91 Days Tbill	Treasury Bills	12.34%
Small Industries Dev Bank of India**	Commercial Paper	6.48%
National Bank for Agriculture and Rural Development**	Commercial Paper	5.64%
HDFC Bank Limited**	Certificate of Deposit	3.71%
Union Bank of India**	Certificate of Deposit	3.22%
Reliance Retail Ventures Limited**	Commercial Paper	3%
Reverse Repo	Cash & Cash Equivalents and Net Assets	2.93%
Central Bank of India**	Certificate of Deposit	2.76%
Indusind Bank Limited**	Certificate of Deposit	2.53%
Bank of Baroda**	Certificate of Deposit	2.41%

The largest holding, 91 Days Tbill, carries a weight of 12.34%, so no single line dominates the portfolio on its own. The drop from the first holding to the tenth is still noticeable, but the spread is not extreme: the tenth holding stands at 2.41%, which shows that weight is shared across several short-duration instruments rather than concentrated in one position.

The top 10 holdings together account for approximately 45.02% of the portfolio, and the scheme discloses 49 holdings in total. That combination suggests a meaningful core in the biggest positions, but also a long tail of smaller holdings that may help diversify issuer and instrument exposure within a liquid-fund framework.

Because the exposed holdings are mainly treasury bills, commercial paper, certificates of deposit and reverse repo, the portfolio is likely to remain focused on liquidity and short maturity. We would read the weight pattern as a sign of controlled concentration in the core positions rather than a highly skewed structure.

To see all holdings, visit the Nippon 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 medium-risk liquid-fund profile and want short-term parking for money that may be needed relatively soon. The return pattern is steady rather than exciting, and the benchmark comparison shows that the fund has generally protected the downside better than the reference index over shorter stretches.

The main trade-off is straightforward: you gain liquidity and a more restrained return path, but you should not expect equity-like upside. Our view is that a horizon of days to a few months is the natural use case, with a somewhat longer holding period acceptable if you want to smooth out short-term rate movement.

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 on or after 7D. No exit load after the holding period.

Source data date: as of 03 Sep 2026

Frequently asked questions

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

The current NAV is ₹6948.5189 as of 03 Sep 2026.

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

The fund’s returns are 6.57% for 1 year, 7.01% for 3 years and 6.36% for 5 years.

How does the fund compare with its benchmark?

It has been slightly ahead of the benchmark over 3 years and 5 years, and it has also held up better over 1 year and 1 month. Over 3 months, the gap is small.

How does it compare with peer liquid funds on return data?

Its return profile is close to the better peer figures, with 1-year, 3-year and 5-year numbers that sit near the stronger available readings rather than far away from them.

Is there a minimum SIP amount?

Yes. The minimum SIP amount is ₹100.

What risk profile and portfolio style does this fund have?

The fund is tagged as Medium Risk and its portfolio is built mainly around treasury bills, commercial paper, certificates of deposit and reverse repo. That structure supports a liquid-fund style focused on short-duration exposure.

Bottom line

Nippon India Liquid Fund Direct Growth Plan shows a steadier longer-term pattern than the benchmark and has also stayed positive in the recent 1-year and 1-month windows. Its peer comparison is close rather than dramatic, which points to dependable liquid-fund behaviour instead of a standout gap. The Medium Risk tag, the short-duration holding mix and the meaningful but not overwhelming core position in treasury bills make it suitable for investors seeking liquidity, stability and a short to medium parking horizon.

Published on 4 September 2026 at 9:57 AM 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.