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What are Money Market Funds?

Updated on July 16, 2026 , 19103 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 The difference between this and a term deposit in a Bank is that CDs can’t be withdrawn.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 (%)2024 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
UTI Money Market Fund Growth ₹3,293.79
↑ 1.77
₹18,6111.53.36.27.37.57.58%6M 20D6M 20D
Tata Money Market Fund Growth ₹5,042.11
↑ 2.65
₹33,0301.53.36.17.37.47.79%7M 1D7M 1D
Aditya Birla Sun Life Money Manager Fund Growth ₹395.043
↑ 0.21
₹27,5501.53.36.17.37.47.94%7M 28D8M 1D
Kotak Money Market Scheme Growth ₹4,794.56
↑ 2.58
₹31,6061.53.36.17.27.47.71%7M 6D7M 6D
Franklin India Savings Fund Growth ₹53.5552
↑ 0.03
₹4,4431.53.26.17.27.47.76%4M 28D6M 25D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 17 Jul 26

Research Highlights & Commentary of 5 Funds showcased

CommentaryUTI Money Market FundTata Money Market FundAditya Birla Sun Life Money Manager FundKotak Money Market SchemeFranklin India Savings Fund
Point 1Bottom quartile AUM (₹18,611 Cr).Highest AUM (₹33,030 Cr).Lower mid AUM (₹27,550 Cr).Upper mid AUM (₹31,606 Cr).Bottom quartile AUM (₹4,443 Cr).
Point 2Established history (17+ yrs).Established history (23+ yrs).Established history (20+ yrs).Established history (23+ yrs).Oldest track record among peers (24 yrs).
Point 3Rating: 4★ (upper mid).Rating: 3★ (bottom quartile).Top rated.Rating: 4★ (lower mid).Rating: 3★ (bottom quartile).
Point 4Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Moderately Low.
Point 51Y return: 6.16% (top quartile).1Y return: 6.13% (upper mid).1Y return: 6.12% (lower mid).1Y return: 6.12% (bottom quartile).1Y return: 6.10% (bottom quartile).
Point 61M return: 0.65% (lower mid).1M return: 0.64% (bottom quartile).1M return: 0.67% (top quartile).1M return: 0.65% (bottom quartile).1M return: 0.65% (upper mid).
Point 7Sharpe: 0.35 (upper mid).Sharpe: 0.48 (top quartile).Sharpe: 0.19 (bottom quartile).Sharpe: 0.24 (bottom quartile).Sharpe: 0.24 (lower mid).
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): 7.58% (bottom quartile).Yield to maturity (debt): 7.79% (upper mid).Yield to maturity (debt): 7.94% (top quartile).Yield to maturity (debt): 7.71% (bottom quartile).Yield to maturity (debt): 7.76% (lower mid).
Point 10Modified duration: 0.56 yrs (upper mid).Modified duration: 0.59 yrs (lower mid).Modified duration: 0.66 yrs (bottom quartile).Modified duration: 0.60 yrs (bottom quartile).Modified duration: 0.41 yrs (top quartile).

UTI Money Market Fund

  • Bottom quartile AUM (₹18,611 Cr).
  • Established history (17+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Low.
  • 1Y return: 6.16% (top quartile).
  • 1M return: 0.65% (lower mid).
  • Sharpe: 0.35 (upper mid).
  • Information ratio: 0.00 (top quartile).
  • Yield to maturity (debt): 7.58% (bottom quartile).
  • Modified duration: 0.56 yrs (upper mid).

Tata Money Market Fund

  • Highest AUM (₹33,030 Cr).
  • Established history (23+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 6.13% (upper mid).
  • 1M return: 0.64% (bottom quartile).
  • Sharpe: 0.48 (top quartile).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 7.79% (upper mid).
  • Modified duration: 0.59 yrs (lower mid).

Aditya Birla Sun Life Money Manager Fund

  • Lower mid AUM (₹27,550 Cr).
  • Established history (20+ yrs).
  • Top rated.
  • Risk profile: Low.
  • 1Y return: 6.12% (lower mid).
  • 1M return: 0.67% (top quartile).
  • Sharpe: 0.19 (bottom quartile).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 7.94% (top quartile).
  • Modified duration: 0.66 yrs (bottom quartile).

Kotak Money Market Scheme

  • Upper mid AUM (₹31,606 Cr).
  • Established history (23+ yrs).
  • Rating: 4★ (lower mid).
  • Risk profile: Low.
  • 1Y return: 6.12% (bottom quartile).
  • 1M return: 0.65% (bottom quartile).
  • Sharpe: 0.24 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 7.71% (bottom quartile).
  • Modified duration: 0.60 yrs (bottom quartile).

Franklin India Savings Fund

  • Bottom quartile AUM (₹4,443 Cr).
  • Oldest track record among peers (24 yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Moderately Low.
  • 1Y return: 6.10% (bottom quartile).
  • 1M return: 0.65% (upper mid).
  • Sharpe: 0.24 (lower mid).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 7.76% (lower mid).
  • Modified duration: 0.41 yrs (top quartile).

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 (₹18,611 Cr).
  • Established history (17+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Low.
  • 1Y return: 6.16% (top quartile).
  • 1M return: 0.65% (lower mid).
  • Sharpe: 0.35 (upper mid).
  • Information ratio: 0.00 (top quartile).
  • Yield to maturity (debt): 7.58% (bottom quartile).
  • Modified duration: 0.56 yrs (upper mid).
  • Average maturity: 0.56 yrs (top quartile).
  • Exit load: NIL.
  • Top sector: Real Estate.
  • Top bond sector: Corporate.
  • Conservative stance with elevated cash (~86%).
  • High-quality debt (AAA/AA ~100%).
  • Largest holding India (Republic of) (~3.5%).

Below is the key information for UTI Money Market Fund

UTI Money Market Fund
Growth
Launch Date 13 Jul 09
NAV (17 Jul 26) ₹3,293.79 ↑ 1.77   (0.05 %)
Net Assets (Cr) ₹18,611 on 31 May 26
Category Debt - Money Market
AMC UTI Asset Management Company Ltd
Rating
Risk Low
Expense Ratio 0.25
Sharpe Ratio 0.35
Information Ratio 0
Alpha Ratio 0
Min Investment 10,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 7.58%
Effective Maturity 6 Months 20 Days
Modified Duration 6 Months 20 Days

Growth of 10,000 investment over the years.

DateValue
30 Jun 21₹10,000
30 Jun 22₹10,381
30 Jun 23₹11,091
30 Jun 24₹11,922
30 Jun 25₹12,901
30 Jun 26₹13,717

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 17 Jul 26

DurationReturns
1 Month 0.7%
3 Month 1.5%
6 Month 3.3%
1 Year 6.2%
3 Year 7.3%
5 Year 6.5%
10 Year
15 Year
Since launch 7.3%
Historical performance (Yearly) on absolute basis
YearReturns
2024 7.5%
2023 7.7%
2022 7.4%
2021 4.9%
2020 3.7%
2019 6%
2018 8%
2017 7.8%
2016 6.7%
2015 7.7%
Fund Manager information for UTI Money Market Fund
NameSinceTenure
Anurag Mittal1 Dec 214.58 Yr.
Amit Sharma7 Jul 178.99 Yr.

Data below for UTI Money Market Fund as on 31 May 26

Asset Allocation
Asset ClassValue
Cash86.17%
Debt13.52%
Other0.31%
Debt Sector Allocation
SectorValue
Corporate46.48%
Cash Equivalent35.25%
Government17.97%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
India (Republic of)
- | -
4%₹654 Cr6,629,850,000
Indusind Bank Ltd.
Debentures | -
2%₹338 Cr3,500,000,000
↑ 3,500,000,000
Tbill
Sovereign Bonds | -
2%₹297 Cr3,000,000,000
Tbill
Sovereign Bonds | -
2%₹296 Cr3,000,000,000
5.74% Govt Stock 2026
Sovereign Bonds | -
2%₹280 Cr2,800,000,000
Tbill
Sovereign Bonds | -
1%₹248 Cr2,500,000,000
Tbill
Sovereign Bonds | -
1%₹198 Cr2,000,000,000
Indian Bank
Domestic Bonds | -
1%₹195 Cr2,000,000,000
Axis Bank Ltd.
Debentures | -
1%₹191 Cr2,000,000,000
↑ 2,000,000,000
Indian Overseas Bank
Debentures | -
1%₹190 Cr2,000,000,000

2. 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 (₹33,030 Cr).
  • Established history (23+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 6.13% (upper mid).
  • 1M return: 0.64% (bottom quartile).
  • Sharpe: 0.48 (top quartile).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 7.79% (upper mid).
  • Modified duration: 0.59 yrs (lower mid).
  • Average maturity: 0.59 yrs (lower mid).
  • Exit load: NIL.
  • Higher exposure to Financial Services vs peer median.
  • Top bond sector: Corporate.
  • Conservative stance with elevated cash (~88%).
  • High-quality debt (AAA/AA ~100%).
  • Largest holding India (Republic of) (~3.2%).

Below is the key information for Tata Money Market Fund

Tata Money Market Fund
Growth
Launch Date 22 May 03
NAV (17 Jul 26) ₹5,042.11 ↑ 2.65   (0.05 %)
Net Assets (Cr) ₹33,030 on 31 May 26
Category Debt - Money Market
AMC Tata Asset Management Limited
Rating
Risk Low
Expense Ratio 0.44
Sharpe Ratio 0.48
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 7.79%
Effective Maturity 7 Months 1 Day
Modified Duration 7 Months 1 Day

Growth of 10,000 investment over the years.

DateValue
30 Jun 21₹10,000
30 Jun 22₹10,373
30 Jun 23₹11,077
30 Jun 24₹11,911
30 Jun 25₹12,877
30 Jun 26₹13,686

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 17 Jul 26

DurationReturns
1 Month 0.6%
3 Month 1.5%
6 Month 3.3%
1 Year 6.1%
3 Year 7.3%
5 Year 6.5%
10 Year
15 Year
Since launch 6.7%
Historical performance (Yearly) on absolute basis
YearReturns
2024 7.4%
2023 7.7%
2022 7.4%
2021 4.8%
2020 3.9%
2019 6.4%
2018 8.1%
2017 -0.1%
2016 6.7%
2015 7.6%
Fund Manager information for Tata Money Market Fund
NameSinceTenure
Amit Somani16 Oct 1312.71 Yr.
Harsh Dave1 Jun 260.08 Yr.

Data below for Tata Money Market Fund as on 31 May 26

Asset Allocation
Asset ClassValue
Cash87.56%
Debt12.11%
Other0.32%
Debt Sector Allocation
SectorValue
Corporate46.25%
Cash Equivalent37.93%
Government15.5%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
India (Republic of)
- | -
3%₹1,000 Cr100,000,000
↑ 100,000,000
Indian Bank
Domestic Bonds | -
3%₹958 Cr19,500
Indian Overseas Bank
Debentures | -
2%₹666 Cr14,000
Equitas Small Finance Bank Ltd.
Debentures | -
2%₹567 Cr12,000
India (Republic of)
- | -
2%₹527 Cr53,000,000
7.86% Karnataka Sdl 2027
Sovereign Bonds | -
2%₹491 Cr48,500,000
↑ 48,500,000
Karur Vysya Bank Ltd.
Debentures | -
2%₹491 Cr10,000
Tbill
Sovereign Bonds | -
1%₹445 Cr45,000,000
India (Republic of)
- | -
1%₹400 Cr40,500,000
India (Republic of)
- | -
1%₹302 Cr30,500,000
↓ -25,000,000

3. 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 (₹27,550 Cr).
  • Established history (20+ yrs).
  • Top rated.
  • Risk profile: Low.
  • 1Y return: 6.12% (lower mid).
  • 1M return: 0.67% (top quartile).
  • Sharpe: 0.19 (bottom quartile).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 7.94% (top quartile).
  • Modified duration: 0.66 yrs (bottom quartile).
  • Average maturity: 0.67 yrs (bottom quartile).
  • Exit load: NIL.
  • Top sector: Financial Services.
  • Top bond sector: Corporate.
  • Conservative stance with elevated cash (~69%).
  • High-quality debt (AAA/AA ~100%).
  • Largest holding Indusind Bank Ltd. (~4.9%).

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 (17 Jul 26) ₹395.043 ↑ 0.21   (0.05 %)
Net Assets (Cr) ₹27,550 on 31 May 26
Category Debt - Money Market
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Low
Expense Ratio 0.35
Sharpe Ratio 0.19
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.94%
Effective Maturity 8 Months 1 Day
Modified Duration 7 Months 28 Days

Growth of 10,000 investment over the years.

DateValue
30 Jun 21₹10,000
30 Jun 22₹10,373
30 Jun 23₹11,087
30 Jun 24₹11,925
30 Jun 25₹12,891
30 Jun 26₹13,700

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 17 Jul 26

DurationReturns
1 Month 0.7%
3 Month 1.5%
6 Month 3.3%
1 Year 6.1%
3 Year 7.3%
5 Year 6.5%
10 Year
15 Year
Since launch 6.8%
Historical performance (Yearly) on absolute basis
YearReturns
2024 7.4%
2023 7.8%
2022 7.4%
2021 4.8%
2020 3.8%
2019 6.6%
2018 8%
2017 7.9%
2016 6.8%
2015 7.7%
Fund Manager information for Aditya Birla Sun Life Money Manager Fund
NameSinceTenure
Kaustubh Gupta15 Jul 1114.97 Yr.
Anuj Jain22 Mar 215.28 Yr.
Mohit Sharma1 Apr 179.25 Yr.

Data below for Aditya Birla Sun Life Money Manager Fund as on 31 May 26

Asset Allocation
Asset ClassValue
Cash69.19%
Debt30.52%
Other0.29%
Debt Sector Allocation
SectorValue
Corporate51.26%
Cash Equivalent33.61%
Government14.84%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Indusind Bank Ltd.
Debentures | -
5%₹1,383 Cr29,000
Axis Bank Ltd.
Debentures | -
3%₹917 Cr19,000
Federal Bank Ltd.
Debentures | -
3%₹905 Cr19,000
Gujarat State Development Loans
Sovereign Bonds | -
3%₹797 Cr79,327,600
Karur Vysya Bank Ltd.
Debentures | -
2%₹475 Cr10,000
Tbill
Sovereign Bonds | -
1%₹394 Cr40,000,000
7.49% Gujarat Sgs 2026
Sovereign Bonds | -
1%₹327 Cr32,500,000
7.43% Gujarat Sgs 2027
Sovereign Bonds | -
1%₹247 Cr24,500,000
Tbill
Sovereign Bonds | -
1%₹245 Cr25,000,000
Karur Vysya Bank Ltd.
Debentures | -
1%₹242 Cr5,000

4. Kotak Money Market Scheme

(Erstwhile Kotak Floater Short Term Fund)

To reduce the interest rate risk associated with investments in fixed rate instruments by investing predominantly in floating rate securities, money market instruments and using appropriate derivatives.

Research Highlights for Kotak Money Market Scheme

  • Upper mid AUM (₹31,606 Cr).
  • Established history (23+ yrs).
  • Rating: 4★ (lower mid).
  • Risk profile: Low.
  • 1Y return: 6.12% (bottom quartile).
  • 1M return: 0.65% (bottom quartile).
  • Sharpe: 0.24 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 7.71% (bottom quartile).
  • Modified duration: 0.60 yrs (bottom quartile).
  • Average maturity: 0.60 yrs (bottom quartile).
  • Exit load: NIL.
  • Top sector: Financial Services.
  • Top bond sector: Corporate.
  • Conservative stance with elevated cash (~88%).
  • High-quality debt (AAA/AA ~100%).
  • Largest holding India (Republic of) (~4.4%).

Below is the key information for Kotak Money Market Scheme

Kotak Money Market Scheme
Growth
Launch Date 14 Jul 03
NAV (17 Jul 26) ₹4,794.56 ↑ 2.58   (0.05 %)
Net Assets (Cr) ₹31,606 on 31 May 26
Category Debt - Money Market
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Low
Expense Ratio 0.36
Sharpe Ratio 0.24
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.71%
Effective Maturity 7 Months 6 Days
Modified Duration 7 Months 6 Days

Growth of 10,000 investment over the years.

DateValue
30 Jun 21₹10,000
30 Jun 22₹10,382
30 Jun 23₹11,079
30 Jun 24₹11,905
30 Jun 25₹12,872
30 Jun 26₹13,680

Kotak Money Market Scheme 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 Kotak Money Market Scheme

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Jul 26

DurationReturns
1 Month 0.7%
3 Month 1.5%
6 Month 3.3%
1 Year 6.1%
3 Year 7.2%
5 Year 6.5%
10 Year
15 Year
Since launch 7%
Historical performance (Yearly) on absolute basis
YearReturns
2024 7.4%
2023 7.7%
2022 7.3%
2021 4.9%
2020 3.7%
2019 5.7%
2018 8%
2017 7.7%
2016 6.7%
2015 7.7%
Fund Manager information for Kotak Money Market Scheme
NameSinceTenure
Deepak Agrawal1 Nov 0619.67 Yr.
Manu Sharma1 Nov 223.66 Yr.

Data below for Kotak Money Market Scheme as on 31 May 26

Asset Allocation
Asset ClassValue
Cash87.94%
Debt11.75%
Other0.31%
Debt Sector Allocation
SectorValue
Corporate46.99%
Cash Equivalent33.44%
Government19.26%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
India (Republic of)
- | -
4%₹1,332 Cr135,000,000
Tbill
Sovereign Bonds | -
3%₹988 Cr100,000,000
Tbill
Sovereign Bonds | -
2%₹742 Cr75,000,000
Indusind Bank Ltd.
Debentures | -
2%₹715 Cr75,000
Punjab National Bank
Debentures | -
2%₹478 Cr50,000
06/08/2026 Maturing 182 DTB
Sovereign Bonds | -
1%₹397 Cr40,000,000
↓ -25,000,000
Tbill
Sovereign Bonds | -
1%₹371 Cr37,500,000
Federal Bank Ltd.
Debentures | -
1%₹359 Cr37,500
India (Republic of)
- | -
1%₹248 Cr25,000,000
↓ -15,000,000
Karur Vysya Bank Ltd.
Debentures | -
1%₹238 Cr25,000

5. Franklin India Savings Fund

(Erstwhile Franklin India Savings Plus Fund Retail Option)

Aims to provide income consistent with the prudent risk from a portfolio comprising substantially of floating rate debt instruments, fixed rate debt instruments swapped for floating rate returns, and also fixed rate instruments and money market instruments.

Research Highlights for Franklin India Savings Fund

  • Bottom quartile AUM (₹4,443 Cr).
  • Oldest track record among peers (24 yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Moderately Low.
  • 1Y return: 6.10% (bottom quartile).
  • 1M return: 0.65% (upper mid).
  • Sharpe: 0.24 (lower mid).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 7.76% (lower mid).
  • Modified duration: 0.41 yrs (top quartile).
  • Average maturity: 0.57 yrs (upper mid).
  • Exit load: NIL.
  • Top sector: Financial Services.
  • Higher exposure to Cash Equivalent (bond sector) vs peer median.
  • Conservative stance with elevated cash (~97%).
  • High-quality debt (AAA/AA ~100%).
  • Largest holding Call, Cash & Other Assets (~12.9%).

Below is the key information for Franklin India Savings Fund

Franklin India Savings Fund
Growth
Launch Date 11 Feb 02
NAV (17 Jul 26) ₹53.5552 ↑ 0.03   (0.05 %)
Net Assets (Cr) ₹4,443 on 31 May 26
Category Debt - Money Market
AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd
Rating
Risk Moderately Low
Expense Ratio 0.3
Sharpe Ratio 0.24
Information Ratio 0
Alpha Ratio 0
Min Investment 10,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 7.76%
Effective Maturity 6 Months 25 Days
Modified Duration 4 Months 28 Days

Growth of 10,000 investment over the years.

DateValue
30 Jun 21₹10,000
30 Jun 22₹10,345
30 Jun 23₹11,025
30 Jun 24₹11,836
30 Jun 25₹12,805
30 Jun 26₹13,606

Franklin India Savings 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 Franklin India Savings Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Jul 26

DurationReturns
1 Month 0.7%
3 Month 1.5%
6 Month 3.2%
1 Year 6.1%
3 Year 7.2%
5 Year 6.4%
10 Year
15 Year
Since launch 7.1%
Historical performance (Yearly) on absolute basis
YearReturns
2024 7.4%
2023 7.7%
2022 7.3%
2021 4.4%
2020 3.6%
2019 6%
2018 8.5%
2017 7.5%
2016 7.2%
2015 8.1%
Fund Manager information for Franklin India Savings Fund
NameSinceTenure
Rahul Goswami6 Oct 232.73 Yr.
Rohan Maru10 Oct 241.72 Yr.
Chandni Gupta30 Apr 242.17 Yr.

Data below for Franklin India Savings Fund as on 31 May 26

Asset Allocation
Asset ClassValue
Cash97.16%
Debt2.57%
Other0.27%
Debt Sector Allocation
SectorValue
Cash Equivalent45.27%
Corporate37.49%
Government16.97%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Axis Bank Ltd.
Debentures | -
2%₹96 Cr2,000
India (Republic of)
- | -
1%₹50 Cr5,000,000
Corporate Debt Market Development Fund Class A2
- | -
0%₹11 Cr8,992
6.88% Westbengal Sdl 2026
Sovereign Bonds | -
0%₹5 Cr500,000
Call, Cash & Other Assets
CBLO | -
13%₹510 Cr
Bajaj Housing Finance Ltd.
Commercial Paper | -
7%₹285 Cr6,000
Piramal Finance Limited
Commercial Paper | -
7%₹257 Cr5,300
HDFC Bank Ltd
Certificate of Deposit | -
6%₹238 Cr5,000
National Bank For Agriculture And Rural Development
Certificate of Deposit | -
6%₹220 Cr4,600
Canara Bank
Certificate of Deposit | -
5%₹190 Cr4,000

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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