Liquid ETFs have emerged as one of the most efficient ways to park surplus funds while earning stable returns with high liquidity and low risk. These ETFs invest in short-term money market instruments and are widely used by both retail and institutional investors.
In this article, we analyze the Top 3 Liquid ETFs in India based on three critical factors:
- Assets Under Management (AUM)
- 1-Year Returns
- Expense Ratio
This comparison will help investors choose the best Liquid ETF based on their investment priorities.
Table of Contents
Top 3 Liquid ETFs Based on AUM (Assets Under Management)
AUM indicates the total money invested in a fund. A higher AUM reflects investor confidence, better liquidity, and lower tracking issues.
Best Liquid ETFs by AUM:
| Name | Based on | 1 Yr. Return | Exp. Ratio | AUM |
|---|---|---|---|---|
| Nippon Nifty Liquid ETF (LIQUIDBEES) | Nifty Liquid Rate | 4.87% | 0.69% | 11568 Cr. |
| Zerodha Nifty 1D Rate Liquid ETF | Nifty Liquid Rate | 5.49% | 0.27% | 7830 Cr. |
| DSP BSE Liquid ETF | BSE Liquid Rate | 5.46% | 0.30% | 1920 Cr. |
Why AUM Matters:
- Higher trading volumes
- Lower bid-ask spreads
- Smooth entry and exit for investors
Top 3 Liquid ETFs Based on 1-Year Returns
While Liquid ETFs are not return-focused instruments, comparing recent performance helps investors evaluate fund efficiency.
Best Liquid ETFs by 1-Year Returns:
| Name | Based on | 1 Yr. Return | Exp. Ratio | AUM |
|---|---|---|---|---|
| Mirae Asset Nifty Liquid ETF | Nifty Liquid Rate | 6.48% | 0.26% | 502 Cr. |
| Aditya Birla Crisil Liquid Overnight Fund ETF | Crisil | 5.70% | 0.43% | 31 Cr. |
| Kotak Nifty Liquid ETF | Nifty Liquid Rate | 5.58% | 0.19% | 1603 Cr. |
📌 Note: Past performance does not guarantee future returns, but it provides useful insights.
Also Read: Top 5 Gold ETFs, Top 5 Silver ETFs
Top 3 Liquid ETFs Based on Expense Ratio
Expense ratio plays a crucial role in long-term wealth creation. A lower expense ratio means higher net returns for investors.
Lowest Expense Ratio Liquid ETFs:
| Name | Based on | 1 Yr. Return | Exp. Ratio | AUM |
|---|---|---|---|---|
| Mirae Asset Nifty 1D Rate Liquid ETF | Nifty Liquid Rate | 5.56% | 0.15% | 404 Cr. |
| Kotak Nifty Liquid ETF | Nifty Liquid Rate | 5.58% | 0.19% | 1603 Cr. |
| Bajaj Finserv Nifty Liquid ETF | Nifty Liquid Rate | 5.41% | 0.19% | 678 Cr. |
Why Expense Ratio Is Important:
Even a difference of 0.10% can impact returns significantly over time, especially for large investments.
Top Liquid ETFs with Low LTP (Low Price ETFs)
Many retail investors prefer low LTP Liquid ETFs as they allow investment with a small amount of capital, making them ideal for beginners and short-term cash management.
Best Low LTP Liquid ETFs in India:
| Name | Based on | 1 Yr. Return | Exp. Ratio | AUM |
|---|---|---|---|---|
| Groww Nifty 1D Rate Liquid ETF | Nifty Liquid Rate | 5.33% | 0.29% | 116 Cr. |
| Zerodha Nifty 1D Rate Liquid ETF | Nifty Liquid Rate | 5.49% | 0.27% | 7830 Cr. |
Why Choose Low LTP Liquid ETFs?
- Easy entry for new investors
- No requirement for large capital
- Flexible cash management
- Suitable for lump-sum or SIP-like investments
- High liquidity / Low trading price (LTP)
- Ideal for parking idle funds from 1 day to a few weeks
🤔 How to Choose the Best Liquid ETF?
Choose a Liquid ETF based on your goal:
- Short-term parking(Cost-conscious investors): Low expense ratio & high liquidity
- Large investment amount: High AUM ETFs
- Performance comparison: Consistent 1-year returns
- Small retail investors: Low LTP ETFs
✅ Final Conclusion
Liquid ETFs are an excellent option for investors looking for safety, high liquidity, and cost efficiency. Evaluating Liquid ETFs based on AUM, returns, expense ratio, and price (LTP) helps investors make a well-informed and balanced investment decision.
These ETFs are particularly useful for short-term fund management, allowing investors to park idle cash efficiently. Depending on individual priorities—whether it is liquidity, performance, lower costs, or a small investment amount—investors can choose the most suitable option from different categories.
Low LTP Liquid ETFs such as Groww 1D ETF and Zerodha Liquid ETFs are especially beneficial for beginners and retail investors, as they offer easy entry with limited capital while maintaining flexibility and liquidity.
📢 Disclaimer
Disclaimer: This blog is for educational purposes only and not investment advice. I am not a SEBI registered advisor. Please consult your financial advisor before making any investment decisions.