Best Liquid ETFs in India in September 2025 – 1yr Returns Basis

Liquid Exchange Traded Funds (ETFs) are short-term investment instruments that primarily invest in money market securities, government securities, and other debt instruments with a maturity of up to 91 days. Since they are listed and traded on stock exchanges like equities, investors can buy and sell liquid ETFs during market hours.

List of Best Liquid ETFs – 1yr Returns Basis

Note: These Liquid ETFs are picked on September 3, 2025. The funds are sorted based on their 1yr retuns.

1-Month Return Performance

While liquid ETFs are primarily considered for their stability and alignment with overnight rates, their short-term returns can still provide useful insights. Over the past month, Angel One Nifty 1D Rate Liquid ETF posted a 0.41% return, in line with peers like Kotak Nifty Liquid ETF and Mirae Asset Nifty 1D Rate ETF. This consistency highlights the ETF’s ability to closely mirror the prevailing interest rate environment while offering low-risk, short-term exposure.

Along with several mutual funds, Angel One has Angel One Nifty 1D Rate Liquid ETF. It is an open-ended Exchange Traded Fund replicating/tracking the Nifty 1D Rate Index. The units of the scheme are listed on the National Stock Exchange (NSE). You can visit the Angel One MF page for more details on the Liquid ETF and other funds as well.

Also Read: Best Defence Sector Mutual Funds In September 2025 Based on AUM!

Conclusion

Liquid ETFs such as the Nifty 1D Rate variants are designed to provide investors with a convenient and low-risk avenue for parking short-term funds. Their returns are generally steady, reflecting overnight money market rates, though small variations may arise due to fund costs and execution efficiency.

While short-term performance metrics like 1-month returns can offer insights, the true value of these ETFs lies in their stability, transparency, and cost-effectiveness. Investors should consider their liquidity requirements and overall portfolio goals before making an allocation to liquid ETFs.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.