NIPPON INDIA LIQUID FUND - DIRECT Plan - MONTHLY IDCW OPTION

NIPPON INDIA LIQUID FUND - DIRECT Plan - MONTHLY IDCW OPTION holds up reasonably well within the Liquid category, backed by a 4-star rating. TopFund's composite Health Score, which weighs rating, 3-year CAGR, expense ratio and fund size, puts it at 77/100.

Cost: At 0.2%, the expense ratio runs 33% 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 -3.87 — 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 1.59% 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.