Aditya Birla Sun Life Liquid Fund - Growth - Direct Plan

Aditya Birla Sun Life Liquid Fund - Growth - Direct Plan ranks among the stronger performers in the Liquid category, backed by a 5-star rating. TopFund's composite Health Score, which weighs rating, 3-year CAGR, expense ratio and fund size, puts it at 84/100.

Cost: At 0.21%, the expense ratio runs 40% above the Liquid category average of 0.15%. That gap is worth weighing against the fund's actual performance versus cheaper peers before committing to a long SIP.

Risk-adjusted performance: Over the trailing 1-year period, the fund shows a negative Sharpe ratio of -8.84 — over the past year, returns haven't kept pace with the volatility involved, even before accounting for the risk-free rate. Separately, annualised volatility of 0.18% is on the lower side, suggesting a comparatively smoother ride.

Who should invest: This fund is best suited to conservative investors prioritising capital stability and predictable income over high growth.