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What are Money Market Funds?

Updated on April 8, 2026 , 18804 views

A money market fund (MMF) is a type of fixed income mutual fund that invests in debt securities. But, before we start with money market funds, it's important to understand what is a fixed income instrument? Well, as the name denotes, a fixed income instrument is something that generates a specified amount of income over a certain period. The investor is given a fixed claim on the assets held by the issuer, fixed income instruments are considered low-risk and low-yield investments. Essentially, fixed income instruments are nothing, but a way of borrowing funds (where the borrowing is done by the issuer).

Fixed-Income-Instruments

Fixed Income Vs Stocks

For starters, fixed income gives economic rights to the holder, which includes the right to receive interest payments and the return of all or part of capital invested at a given date. In contrast, the shareholder (stock owner) receives dividends from the issuer, but the company is not bound by any law to pay dividends. Also, another important difference is that the fixed income holder is a creditor of the company that issues the security, while a shareholder is a partner, owning a part of the capital stock. Here it’s important to understand that if the company goes bust, the creditors (bondholders) have priority over shareholders (equity holders).

Types of Fixed Income Instruments

There are different fixed income instruments that fall under money market instruments, to name some of them:

Certificates of Deposits (CDs)

Time deposits like term deposits are commonly offered to consumers by banks (scheduled commercial banks) & all India financial institutions. The difference between this and a term deposit in a Bank is that CDs can’t be withdrawn.

Commercial Paper (CPs)

Commercial papers are usually known as promissory notes which are unsecured and are generally issued by companies and financial institutions, at a discounted rate from their face value. The fixed maturity for commercial papers is 1 to 270 days. The purposes for which they are issued are - for inventory financing, accounts receivables, and settling short-term liabilities or loans.

Treasury Bills (T-Bills)

Treasury bills were first issued by the Indian government in 1917. Treasury bills are short-term financial instruments that are issued by the Central Bank of the country. It is one of the safest money market instruments as it is void of market risks (since the risk is sovereign or in this case the Government of India), though the return on investments is not that huge. Treasury bills are circulated by the primary as well as the secondary markets. The maturity periods for treasury bills are respectively 3-month, 6-month, and 1-year.

There are lots of other fixed income instruments such as repurchase agreements (repos), asset-backed securities etc., that also exist in the Indian fixed income market, but the above are the more common ones.

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Why to Invest in Money Market Mutual Funds?

  • Securities in the money market are relatively low risk.
  • Money market funds are considered to be the safe and secure of all Mutual Fund investments.
  • Considering money market funds, it’s easy to invest in a money market account. Investing through Mutual Funds investors can open an account, make deposits and withdrawals virtually at their convenience.
  • Money market funds are considered to be one of the least volatile types of all mutual fund investments.
  • The performance of money market funds is closely tied to the interest rates set by the Reserve Bank of India, the Central Bank of India. So, when RBI raises rates in the market, yields increase, and money market funds are able to give good returns.

Money Market Instruments & Bonds: The Difference

Bonds have a maturity period of more than one year which differentiates it from other debt securities like commercial papers, treasury bills and other money market instruments which typically have a maturity period of less than one year.

What is Money Market?

Money market generally refers to a section of the financial market where financial instruments with smaller maturities (less than a year) and high liquidity are traded. India has a very active money market, where a host of instruments are traded. Here you have Mutual Fund companies, government banks and various other large domestic institutions participating. The money market has become a component of the financial market for buying and selling of securities of short-term duration, such as commercial papers and treasury bills.

Money Market Rates

The money market rates are the interest rates offered by short-term money market instruments. These instruments have a maturity ranging from 1 day to one year. The money market rates vary over many complex instruments such as treasury bills, call money, commercial paper (CP), certificates of deposits (CDs), repos, etc. The Reserve Bank of India (RBI) is largely the governing authority over the money markets.

An example of the money market rates of various instruments as given on the RBI site as of 28th Feb 2017 is below for reference.

Volume (One Leg) Weighted Average Rate Range
A. Overnight Segment (I+II+III+IV) 553,584.29 6.64 4.60-6.86
I. Call Money 16,300.98 6.67 4.60-6.85
II. Triparty Repo 376,743.10 6.64 6.56-6.80
III. Market Repo 160,540.21 6.65 6.00-6.86
IV. Repo in Corporate Bond 0.00 - -
B. Term Segment
I. Notice Money** 109.00 6.27 6.00-6.70
II. Term Money@@ 351.00 - 6.40-7.00
III. Triparty Repo 55.00 6.60 6.60-6.60
IV. Market Repo 1,075.00 6.76 6.75-6.85
V. Repo in Corporate Bond 0.00 - -

Source: Money Market Operations, RBI Date: 27 Feb 2023

Mutual Fund Companies Offering Money Market Funds

As we have learnt about various types of instruments above, it’s equally important to know how an investor could invest in money market funds. There are 44 AMCs (Asset Managment Companies) in India, most of them offering money market funds (mainly Liquid Funds and ultra-short funds for investors). Investors can also invest via distributors like banks and brokers. Investing in money market funds requires one to follow the respective procedure and the relevant applications. The terms & conditions of debt mutual funds may vary, therefore, it’s important to get an overall knowledge and then choose the one that meets your needs. Moreover, before investing into any money market mutual funds carefully consider its investment objectives, risks, returns, and expenses.

Factors to Consider for Investing in MMFs

Here are some important aspects that you must consider before investing in money market funds in India:

a. Risks and Returns

Money Market Funds are debt funds and hence carry all the risks applicable to debt funds like interest rate risk and credit risk. Additionally, the fund manager might invest in instruments with a slightly higher risk component to increase returns. Usually, money market funds tend to offer better returns than a regular Savings Account. The Net Asset Value or NAV of these funds changes with a change in the interest rate regime.

b. Expense Ratio

Since the returns are not very high, the expense ratio plays an important role in determining your earnings from a money market fund. Expense Ratio is a small percentage of the total assets of the fund charged by the fund house towards fund management services. Ideally, you should look for funds with a lower expense ratio to maximize your returns.

c. Invest according to your Investment Plan

Usually, money market funds are recommended to investors with an investment horizon of 90-365 days. These schemes can help you diversify your Portfolio and help invest surplus cash while maintaining liquidity. Ensure that you invest according to your Investment plan.

d. Taxation

In the case of Money Market Funds, the taxation rules are as follows:

  • Capital Gains Tax

If you hold the units of the scheme for a period of up to three years, then the Capital Gains earned by you are called short-term capital gains or STCG. STCG is added to your taxable income and taxed as per the applicable income tax slab. If you hold the units of the scheme for more than three years, then the capital gains earned by you are called long-term capital gains or LTCG. It is taxed at 20% with indexation benefits.

Fund Selection Methodology used to find 5 funds

  • Category: Debt
  • Sub-category: Money%20Market
  • AUM Range: 100 to 100000 Cr
  • Sorted On : 1-year return (high to low)
  • No Of Funds: 5

Best Money Market Funds to Invest in FY 26 - 27

Some of the best money market funds in India are as follows-

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2025 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
UTI Money Market Fund Growth ₹3,238.97
↑ 1.70
₹20,3201.636.67.47.56.03%7M 7M
ICICI Prudential Money Market Fund Growth ₹398.498
↑ 0.22
₹32,2361.636.67.47.46.77%7M 21D8M 9D
Tata Money Market Fund Growth ₹4,958.51
↑ 2.88
₹33,9991.636.67.47.46.64%6D6D
Nippon India Money Market Fund Growth ₹4,357.59
↑ 2.49
₹21,8761.636.67.47.46.89%7M 21D8M 8D
Aditya Birla Sun Life Money Manager Fund Growth ₹388.481
↑ 0.22
₹30,7781.636.67.47.47.02%7M 17D7M 20D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 10 Apr 26

Research Highlights & Commentary of 5 Funds showcased

CommentaryUTI Money Market FundICICI Prudential Money Market FundTata Money Market FundNippon India Money Market FundAditya Birla Sun Life Money Manager Fund
Point 1Bottom quartile AUM (₹20,320 Cr).Upper mid AUM (₹32,236 Cr).Highest AUM (₹33,999 Cr).Bottom quartile AUM (₹21,876 Cr).Lower mid AUM (₹30,778 Cr).
Point 2Established history (16+ yrs).Established history (20+ yrs).Oldest track record among peers (22 yrs).Established history (20+ yrs).Established history (20+ yrs).
Point 3Rating: 4★ (upper mid).Rating: 4★ (lower mid).Rating: 3★ (bottom quartile).Rating: 3★ (bottom quartile).Top rated.
Point 4Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.
Point 51Y return: 6.64% (top quartile).1Y return: 6.60% (upper mid).1Y return: 6.60% (lower mid).1Y return: 6.59% (bottom quartile).1Y return: 6.59% (bottom quartile).
Point 61M return: 0.67% (bottom quartile).1M return: 0.66% (bottom quartile).1M return: 0.69% (upper mid).1M return: 0.68% (lower mid).1M return: 0.71% (top quartile).
Point 7Sharpe: 2.45 (upper mid).Sharpe: 2.51 (top quartile).Sharpe: 2.38 (lower mid).Sharpe: 2.28 (bottom quartile).Sharpe: 2.09 (bottom quartile).
Point 8Information ratio: 0.00 (top quartile).Information ratio: 0.00 (upper mid).Information ratio: 0.00 (lower mid).Information ratio: 0.00 (bottom quartile).Information ratio: 0.00 (bottom quartile).
Point 9Yield to maturity (debt): 6.03% (bottom quartile).Yield to maturity (debt): 6.77% (lower mid).Yield to maturity (debt): 6.64% (bottom quartile).Yield to maturity (debt): 6.89% (upper mid).Yield to maturity (debt): 7.02% (top quartile).
Point 10Modified duration: 0.58 yrs (upper mid).Modified duration: 0.64 yrs (bottom quartile).Modified duration: 0.02 yrs (top quartile).Modified duration: 0.64 yrs (bottom quartile).Modified duration: 0.63 yrs (lower mid).

UTI Money Market Fund

  • Bottom quartile AUM (₹20,320 Cr).
  • Established history (16+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Low.
  • 1Y return: 6.64% (top quartile).
  • 1M return: 0.67% (bottom quartile).
  • Sharpe: 2.45 (upper mid).
  • Information ratio: 0.00 (top quartile).
  • Yield to maturity (debt): 6.03% (bottom quartile).
  • Modified duration: 0.58 yrs (upper mid).

ICICI Prudential Money Market Fund

  • Upper mid AUM (₹32,236 Cr).
  • Established history (20+ yrs).
  • Rating: 4★ (lower mid).
  • Risk profile: Low.
  • 1Y return: 6.60% (upper mid).
  • 1M return: 0.66% (bottom quartile).
  • Sharpe: 2.51 (top quartile).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 6.77% (lower mid).
  • Modified duration: 0.64 yrs (bottom quartile).

Tata Money Market Fund

  • Highest AUM (₹33,999 Cr).
  • Oldest track record among peers (22 yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 6.60% (lower mid).
  • 1M return: 0.69% (upper mid).
  • Sharpe: 2.38 (lower mid).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 6.64% (bottom quartile).
  • Modified duration: 0.02 yrs (top quartile).

Nippon India Money Market Fund

  • Bottom quartile AUM (₹21,876 Cr).
  • Established history (20+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 6.59% (bottom quartile).
  • 1M return: 0.68% (lower mid).
  • Sharpe: 2.28 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.89% (upper mid).
  • Modified duration: 0.64 yrs (bottom quartile).

Aditya Birla Sun Life Money Manager Fund

  • Lower mid AUM (₹30,778 Cr).
  • Established history (20+ yrs).
  • Top rated.
  • Risk profile: Low.
  • 1Y return: 6.59% (bottom quartile).
  • 1M return: 0.71% (top quartile).
  • Sharpe: 2.09 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 7.02% (top quartile).
  • Modified duration: 0.63 yrs (lower mid).

1. UTI Money Market Fund

To provide highest possible current income consistent with preservation of capital and providing liquidity from investing in a diversified portfolio of short term money market securities.

Research Highlights for UTI Money Market Fund

  • Bottom quartile AUM (₹20,320 Cr).
  • Established history (16+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Low.
  • 1Y return: 6.64% (top quartile).
  • 1M return: 0.67% (bottom quartile).
  • Sharpe: 2.45 (upper mid).
  • Information ratio: 0.00 (top quartile).
  • Yield to maturity (debt): 6.03% (bottom quartile).
  • Modified duration: 0.58 yrs (upper mid).
  • Average maturity: 0.58 yrs (upper mid).
  • Exit load: NIL.
  • Top sector: Real Estate.
  • Top bond sector: Corporate.
  • Conservative stance with elevated cash (~68%).
  • High-quality debt (AAA/AA ~100%).
  • Largest holding Canara Bank (~3.4%).

Below is the key information for UTI Money Market Fund

UTI Money Market Fund
Growth
Launch Date 13 Jul 09
NAV (10 Apr 26) ₹3,238.97 ↑ 1.70   (0.05 %)
Net Assets (Cr) ₹20,320 on 28 Feb 26
Category Debt - Money Market
AMC UTI Asset Management Company Ltd
Rating
Risk Low
Expense Ratio 0.25
Sharpe Ratio 2.45
Information Ratio 0
Alpha Ratio 0
Min Investment 10,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 6.03%
Effective Maturity 7 Months
Modified Duration 7 Months

Growth of 10,000 investment over the years.

DateValue
31 Mar 21₹10,000
31 Mar 22₹10,390
31 Mar 23₹10,983
31 Mar 24₹11,818
31 Mar 25₹12,737
31 Mar 26₹13,581

UTI Money Market Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for UTI Money Market Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 10 Apr 26

DurationReturns
1 Month 0.7%
3 Month 1.6%
6 Month 3%
1 Year 6.6%
3 Year 7.4%
5 Year 6.4%
10 Year
15 Year
Since launch 7.3%
Historical performance (Yearly) on absolute basis
YearReturns
2025 7.5%
2024 7.7%
2023 7.4%
2022 4.9%
2021 3.7%
2020 6%
2019 8%
2018 7.8%
2017 6.7%
2016 7.7%
Fund Manager information for UTI Money Market Fund
NameSinceTenure
Anurag Mittal1 Dec 214.25 Yr.
Amit Sharma7 Jul 178.65 Yr.

Data below for UTI Money Market Fund as on 28 Feb 26

Asset Allocation
Asset ClassValue
Cash67.87%
Debt31.85%
Other0.28%
Debt Sector Allocation
SectorValue
Corporate43.95%
Cash Equivalent40.59%
Government15.18%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Canara Bank
Domestic Bonds | -
3%₹688 Cr7,000,000,000
19/03/2026 Maturing 364 DTB
Sovereign Bonds | -
2%₹499 Cr5,000,000,000
Tbill
Sovereign Bonds | -
2%₹492 Cr5,000,000,000
HDFC Bank Ltd.
Debentures | -
2%₹421 Cr4,500,000,000
↑ 4,500,000,000
Union Bank of India
Domestic Bonds | -
2%₹394 Cr4,000,000,000
Indian Bank
Domestic Bonds | -
2%₹376 Cr4,000,000,000
Small Industries Development Bank of India
Debentures | -
2%₹374 Cr4,000,000,000
↑ 4,000,000,000
08/05/2026 Maturing 182 DTB
Sovereign Bonds | -
2%₹347 Cr3,500,000,000
21/05/2026 Maturing 182 DTB
Sovereign Bonds | -
2%₹346 Cr3,500,000,000
HDFC Bank Ltd.
Debentures | -
2%₹329 Cr3,500,000,000

2. ICICI Prudential Money Market Fund

The objective of the Plan will be to seek to provide reasonable returns, commensurate with low risk while providing a high level of liquidity, through investments made primarily in money market and debt securities.

Research Highlights for ICICI Prudential Money Market Fund

  • Upper mid AUM (₹32,236 Cr).
  • Established history (20+ yrs).
  • Rating: 4★ (lower mid).
  • Risk profile: Low.
  • 1Y return: 6.60% (upper mid).
  • 1M return: 0.66% (bottom quartile).
  • Sharpe: 2.51 (top quartile).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 6.77% (lower mid).
  • Modified duration: 0.64 yrs (bottom quartile).
  • Average maturity: 0.69 yrs (bottom quartile).
  • Exit load: NIL.
  • Top sector: Financial Services.
  • Top bond sector: Corporate.
  • Conservative stance with elevated cash (~82%).
  • High-quality debt (AAA/AA ~100%).
  • Largest holding 19/03/2026 Maturing 182 DTB (~6.5%).

Below is the key information for ICICI Prudential Money Market Fund

ICICI Prudential Money Market Fund
Growth
Launch Date 9 Mar 06
NAV (10 Apr 26) ₹398.498 ↑ 0.22   (0.06 %)
Net Assets (Cr) ₹32,236 on 15 Mar 26
Category Debt - Money Market
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Low
Expense Ratio 0.32
Sharpe Ratio 2.51
Information Ratio 0
Alpha Ratio 0
Min Investment 500
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 6.77%
Effective Maturity 8 Months 9 Days
Modified Duration 7 Months 21 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 21₹10,000
31 Mar 22₹10,381
31 Mar 23₹10,958
31 Mar 24₹11,789
31 Mar 25₹12,702
31 Mar 26₹13,540

ICICI Prudential Money Market Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for ICICI Prudential Money Market Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 10 Apr 26

DurationReturns
1 Month 0.7%
3 Month 1.6%
6 Month 3%
1 Year 6.6%
3 Year 7.4%
5 Year 6.3%
10 Year
15 Year
Since launch 7.1%
Historical performance (Yearly) on absolute basis
YearReturns
2025 7.4%
2024 7.7%
2023 7.4%
2022 4.7%
2021 3.7%
2020 6.2%
2019 7.9%
2018 7.7%
2017 6.7%
2016 7.7%
Fund Manager information for ICICI Prudential Money Market Fund
NameSinceTenure
Manish Banthia12 Jun 232.72 Yr.
Nikhil Kabra3 Aug 169.58 Yr.

Data below for ICICI Prudential Money Market Fund as on 15 Mar 26

Asset Allocation
Asset ClassValue
Cash82.34%
Debt17.41%
Other0.26%
Debt Sector Allocation
SectorValue
Corporate48.41%
Cash Equivalent42.98%
Government8.36%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
19/03/2026 Maturing 182 DTB
Sovereign Bonds | -
6%₹2,280 Cr228,500,000
↓ -5,000,000
12/03/2026 Maturing 364 DTB
Sovereign Bonds | -
3%₹1,163 Cr116,500,000
Bank of India Ltd.
Debentures | -
1%₹469 Cr10,000
↑ 10,000
National Bank for Agriculture and Rural Development
Domestic Bonds | -
1%₹468 Cr10,000
↑ 10,000
Small Industries Development Bank of India
Debentures | -
1%₹468 Cr10,000
↑ 10,000
HDFC Bank Ltd.
Debentures | -
1%₹421 Cr9,000
↑ 9,000
Indian Bank
Domestic Bonds | -
1%₹376 Cr8,000
05/03/2026 Maturing 364 DTB
Sovereign Bonds | -
1%₹350 Cr35,000,000
National Bank for Agriculture and Rural Development
Domestic Bonds | -
1%₹329 Cr7,000
Canara Bank
Domestic Bonds | -
1%₹295 Cr6,000

3. Tata Money Market Fund

(Erstwhile Tata Liquid Fund)

To create a highly liquid portfolio of good quality debt as well as money market instruments so as to provide reasonable returns and high liquidity to the unitholders.

Research Highlights for Tata Money Market Fund

  • Highest AUM (₹33,999 Cr).
  • Oldest track record among peers (22 yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 6.60% (lower mid).
  • 1M return: 0.69% (upper mid).
  • Sharpe: 2.38 (lower mid).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 6.64% (bottom quartile).
  • Modified duration: 0.02 yrs (top quartile).
  • Average maturity: 0.02 yrs (top quartile).
  • Exit load: NIL.
  • Higher exposure to Financial Services vs peer median.
  • Higher exposure to Cash Equivalent (bond sector) vs peer median.
  • Conservative stance with elevated cash (~79%).
  • High-quality debt (AAA/AA ~100%).
  • Largest holding 02/04/2026 Maturing 364 DTB (~5.4%).

Below is the key information for Tata Money Market Fund

Tata Money Market Fund
Growth
Launch Date 22 May 03
NAV (10 Apr 26) ₹4,958.51 ↑ 2.88   (0.06 %)
Net Assets (Cr) ₹33,999 on 15 Mar 26
Category Debt - Money Market
AMC Tata Asset Management Limited
Rating
Risk Low
Expense Ratio 0.44
Sharpe Ratio 2.38
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 6.64%
Effective Maturity 6 Days
Modified Duration 6 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 21₹10,000
31 Mar 22₹10,401
31 Mar 23₹10,979
31 Mar 24₹11,815
31 Mar 25₹12,727
31 Mar 26₹13,564

Tata Money Market Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for Tata Money Market Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 10 Apr 26

DurationReturns
1 Month 0.7%
3 Month 1.6%
6 Month 3%
1 Year 6.6%
3 Year 7.4%
5 Year 6.4%
10 Year
15 Year
Since launch 6.8%
Historical performance (Yearly) on absolute basis
YearReturns
2025 7.4%
2024 7.7%
2023 7.4%
2022 4.8%
2021 3.9%
2020 6.4%
2019 8.1%
2018 -0.1%
2017 6.7%
2016 7.6%
Fund Manager information for Tata Money Market Fund
NameSinceTenure
Amit Somani16 Oct 1312.38 Yr.

Data below for Tata Money Market Fund as on 15 Mar 26

Asset Allocation
Asset ClassValue
Cash79.02%
Debt20.71%
Other0.27%
Debt Sector Allocation
SectorValue
Cash Equivalent47.77%
Corporate42.87%
Government9.09%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
02/04/2026 Maturing 364 DTB
Sovereign Bonds | -
5%₹1,991 Cr200,000,000
Indian Bank
Domestic Bonds | -
3%₹963 Cr20,000
Indian Overseas Bank
Debentures | -
3%₹935 Cr20,000
↑ 20,000
Small Industries Development Bank of India
Debentures | -
2%₹654 Cr14,000
↑ 14,000
Indian Overseas Bank
Debentures | -
2%₹654 Cr14,000
↑ 14,000
Tbill
Sovereign Bonds | -
2%₹630 Cr63,500,000
Canara Bank
Domestic Bonds | -
2%₹616 Cr13,000
↑ 13,000
Axis Bank Ltd.
Debentures | -
2%₹616 Cr13,000
↑ 13,000
Tbill
Sovereign Bonds | -
2%₹586 Cr59,000,000
Equitas Small Finance Bank Ltd.
Debentures | -
2%₹557 Cr12,000
↑ 12,000

4. Nippon India Money Market Fund

(Erstwhile Reliance Liquidity Fund)

The investment objective of the Scheme is to generate optimal returns consistent with moderate levels of risk and high liquidity. Accordingly, investments shall predominantly be made in Debt and Money Market Instruments.

Research Highlights for Nippon India Money Market Fund

  • Bottom quartile AUM (₹21,876 Cr).
  • Established history (20+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 6.59% (bottom quartile).
  • 1M return: 0.68% (lower mid).
  • Sharpe: 2.28 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.89% (upper mid).
  • Modified duration: 0.64 yrs (bottom quartile).
  • Average maturity: 0.69 yrs (bottom quartile).
  • Exit load: NIL.
  • Top sector: Financial Services.
  • Top bond sector: Corporate.
  • Conservative stance with elevated cash (~66%).
  • High-quality debt (AAA/AA ~100%).
  • Largest holding HDFC Bank Ltd. (~2.4%).

Below is the key information for Nippon India Money Market Fund

Nippon India Money Market Fund
Growth
Launch Date 16 Jun 05
NAV (10 Apr 26) ₹4,357.59 ↑ 2.49   (0.06 %)
Net Assets (Cr) ₹21,876 on 28 Feb 26
Category Debt - Money Market
AMC Nippon Life Asset Management Ltd.
Rating
Risk Low
Expense Ratio 0.39
Sharpe Ratio 2.28
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 6.89%
Effective Maturity 8 Months 8 Days
Modified Duration 7 Months 21 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 21₹10,000
31 Mar 22₹10,392
31 Mar 23₹10,990
31 Mar 24₹11,824
31 Mar 25₹12,737
31 Mar 26₹13,575

Nippon India Money Market Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for Nippon India Money Market Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 10 Apr 26

DurationReturns
1 Month 0.7%
3 Month 1.6%
6 Month 3%
1 Year 6.6%
3 Year 7.4%
5 Year 6.4%
10 Year
15 Year
Since launch 7.3%
Historical performance (Yearly) on absolute basis
YearReturns
2025 7.4%
2024 7.8%
2023 7.4%
2022 5%
2021 3.8%
2020 6%
2019 8.1%
2018 7.9%
2017 6.6%
2016 7.6%
Fund Manager information for Nippon India Money Market Fund
NameSinceTenure
Kinjal Desai16 Jul 187.63 Yr.
Vikash Agarwal14 Sep 241.46 Yr.
Lokesh Maru5 Sep 250.48 Yr.
Divya Sharma5 Sep 250.48 Yr.

Data below for Nippon India Money Market Fund as on 28 Feb 26

Asset Allocation
Asset ClassValue
Cash66.39%
Debt33.34%
Other0.27%
Debt Sector Allocation
SectorValue
Corporate50.97%
Cash Equivalent35.05%
Government13.71%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
HDFC Bank Ltd.
Debentures | -
2%₹521 Cr11,000
↑ 11,000
India (Republic of)
- | -
2%₹487 Cr50,000,000
↑ 50,000,000
India (Republic of)
- | -
2%₹487 Cr50,000,000
↑ 50,000,000
Canara Bank
Domestic Bonds | -
2%₹470 Cr10,000
Punjab National Bank
Domestic Bonds | -
2%₹470 Cr10,000
UCO Bank
Domestic Bonds | -
2%₹468 Cr10,000
↑ 10,000
21/05/2026 Maturing 182 DTB
Sovereign Bonds | -
2%₹445 Cr45,000,000
Small Industries Development Bank of India
Debentures | -
2%₹421 Cr9,000
↑ 9,000
11/06/2026 Maturing 364 DTB
Sovereign Bonds | -
2%₹384 Cr39,000,000
↑ 39,000,000
IDFC First Bank Ltd.
Debentures | -
2%₹375 Cr8,000

5. Aditya Birla Sun Life Money Manager Fund

(Erstwhile Aditya Birla Sun Life Floating Rate Fund - Short Term)

The primary objective of the schemes is to generate regular income through investment in a portfolio comprising substantially of floating rate debt / money market instruments. The schemes may invest a portion of its net assets in fixed rate debt securities and money market instruments.

Research Highlights for Aditya Birla Sun Life Money Manager Fund

  • Lower mid AUM (₹30,778 Cr).
  • Established history (20+ yrs).
  • Top rated.
  • Risk profile: Low.
  • 1Y return: 6.59% (bottom quartile).
  • 1M return: 0.71% (top quartile).
  • Sharpe: 2.09 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 7.02% (top quartile).
  • Modified duration: 0.63 yrs (lower mid).
  • Average maturity: 0.64 yrs (lower mid).
  • Exit load: NIL.
  • Top sector: Financial Services.
  • Top bond sector: Corporate.
  • Conservative stance with elevated cash (~58%).
  • High-quality debt (AAA/AA ~100%).
  • Largest holding Indusind Bank Ltd. (~4.6%).

Below is the key information for Aditya Birla Sun Life Money Manager Fund

Aditya Birla Sun Life Money Manager Fund
Growth
Launch Date 13 Oct 05
NAV (10 Apr 26) ₹388.481 ↑ 0.22   (0.06 %)
Net Assets (Cr) ₹30,778 on 28 Feb 26
Category Debt - Money Market
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Low
Expense Ratio 0.35
Sharpe Ratio 2.09
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.02%
Effective Maturity 7 Months 20 Days
Modified Duration 7 Months 17 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 21₹10,000
31 Mar 22₹10,397
31 Mar 23₹10,985
31 Mar 24₹11,825
31 Mar 25₹12,741
31 Mar 26₹13,571

Aditya Birla Sun Life Money Manager Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for Aditya Birla Sun Life Money Manager Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 10 Apr 26

DurationReturns
1 Month 0.7%
3 Month 1.6%
6 Month 3%
1 Year 6.6%
3 Year 7.4%
5 Year 6.4%
10 Year
15 Year
Since launch 6.8%
Historical performance (Yearly) on absolute basis
YearReturns
2025 7.4%
2024 7.8%
2023 7.4%
2022 4.8%
2021 3.8%
2020 6.6%
2019 8%
2018 7.9%
2017 6.8%
2016 7.7%
Fund Manager information for Aditya Birla Sun Life Money Manager Fund
NameSinceTenure
Kaustubh Gupta15 Jul 1114.64 Yr.
Anuj Jain22 Mar 214.94 Yr.
Mohit Sharma1 Apr 178.92 Yr.

Data below for Aditya Birla Sun Life Money Manager Fund as on 28 Feb 26

Asset Allocation
Asset ClassValue
Cash58.14%
Debt41.6%
Other0.26%
Debt Sector Allocation
SectorValue
Corporate50.61%
Cash Equivalent36.34%
Government12.79%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Indusind Bank Ltd.
Debentures | -
5%₹1,405 Cr30,000
Axis Bank Ltd.
Debentures | -
3%₹947 Cr20,000
↑ 10,000
Federal Bank Ltd.
Debentures | -
3%₹937 Cr20,000
↑ 20,000
National Bank for Agriculture and Rural Development
Domestic Bonds | -
2%₹562 Cr12,000
↑ 12,000
5.63% Gs 2026
Sovereign Bonds | -
2%₹470 Cr47,000,000
Federal Bank Ltd.
Debentures | -
2%₹470 Cr10,000
↑ 10,000
Punjab National Bank
Domestic Bonds | -
2%₹469 Cr10,000
HDFC Bank Ltd.
Debentures | -
2%₹468 Cr10,000
↑ 10,000
Karur Vysya Bank Ltd.
Debentures | -
2%₹467 Cr10,000
↑ 10,000
02/10/2026 Maturing 364 DTB
Sovereign Bonds | -
1%₹388 Cr40,000,000

Conclusion

While we have learnt about money market instruments it's also important to know about debt mutual funds, their types, and classifications. Well, debt mutual funds are classified into general broad categories such as Liquid Funds, Ultra short term funds, Short Term Funds, Long Term Income Funds and Gilt Funds.

However, to invest in money market funds, it’s very important to understand the situation of the economy, the direction of interest rates, and the expected direction of movement of yields in corporate debt as well as government debt when investing.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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