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What are Money Market Funds?

Updated on September 15, 2025 , 18313 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 The difference between this and a term deposit in a Bank is that CDs can’t be withdrawn.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 fund 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.

Best Money Market Funds to Invest in FY 25 - 26

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 ₹3,130.98
↑ 0.81
₹20,5541.54.17.97.6 6.16%6M 20D6M 20D
Nippon India Money Market Fund Growth ₹4,214.36
↑ 1.14
₹22,4611.54.17.87.5 6.22%6M 10D6M 22D
Franklin India Savings Fund Growth ₹50.9256
↑ 0.01
₹4,0801.54.17.87.4 6.08%5M 26D6M 7D
ICICI Prudential Money Market Fund Growth ₹385.272
↑ 0.10
₹36,9421.54.17.87.5 6.1%5M 24D6M 6D
Tata Money Market Fund Growth ₹4,793.93
↑ 1.31
₹41,2351.54.17.87.5 6.16%6M 7D6M 7D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 17 Sep 25

Research Highlights & Commentary of 5 Funds showcased

CommentaryUTI Money Market FundNippon India Money Market FundFranklin India Savings FundICICI Prudential Money Market FundTata Money Market Fund
Point 1Bottom quartile AUM (₹20,554 Cr).Lower mid AUM (₹22,461 Cr).Bottom quartile AUM (₹4,080 Cr).Upper mid AUM (₹36,942 Cr).Highest AUM (₹41,235 Cr).
Point 2Established history (16+ yrs).Established history (20+ yrs).Oldest track record among peers (23 yrs).Established history (19+ yrs).Established history (22+ yrs).
Point 3Top rated.Rating: 3★ (lower mid).Rating: 3★ (bottom quartile).Rating: 4★ (upper mid).Rating: 3★ (bottom quartile).
Point 4Risk profile: Low.Risk profile: Low.Risk profile: Moderately Low.Risk profile: Low.Risk profile: Low.
Point 51Y return: 7.86% (top quartile).1Y return: 7.83% (upper mid).1Y return: 7.83% (lower mid).1Y return: 7.82% (bottom quartile).1Y return: 7.80% (bottom quartile).
Point 61M return: 0.51% (top quartile).1M return: 0.51% (lower mid).1M return: 0.49% (bottom quartile).1M return: 0.50% (bottom quartile).1M return: 0.51% (upper mid).
Point 7Sharpe: 3.26 (top quartile).Sharpe: 3.11 (upper mid).Sharpe: 3.04 (bottom quartile).Sharpe: 3.08 (bottom quartile).Sharpe: 3.10 (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): 6.16% (upper mid).Yield to maturity (debt): 6.22% (top quartile).Yield to maturity (debt): 6.08% (bottom quartile).Yield to maturity (debt): 6.10% (bottom quartile).Yield to maturity (debt): 6.16% (lower mid).
Point 10Modified duration: 0.56 yrs (bottom quartile).Modified duration: 0.53 yrs (bottom quartile).Modified duration: 0.49 yrs (upper mid).Modified duration: 0.48 yrs (top quartile).Modified duration: 0.52 yrs (lower mid).

UTI Money Market Fund

  • Bottom quartile AUM (₹20,554 Cr).
  • Established history (16+ yrs).
  • Top rated.
  • Risk profile: Low.
  • 1Y return: 7.86% (top quartile).
  • 1M return: 0.51% (top quartile).
  • Sharpe: 3.26 (top quartile).
  • Information ratio: 0.00 (top quartile).
  • Yield to maturity (debt): 6.16% (upper mid).
  • Modified duration: 0.56 yrs (bottom quartile).

Nippon India Money Market Fund

  • Lower mid AUM (₹22,461 Cr).
  • Established history (20+ yrs).
  • Rating: 3★ (lower mid).
  • Risk profile: Low.
  • 1Y return: 7.83% (upper mid).
  • 1M return: 0.51% (lower mid).
  • Sharpe: 3.11 (upper mid).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 6.22% (top quartile).
  • Modified duration: 0.53 yrs (bottom quartile).

Franklin India Savings Fund

  • Bottom quartile AUM (₹4,080 Cr).
  • Oldest track record among peers (23 yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Moderately Low.
  • 1Y return: 7.83% (lower mid).
  • 1M return: 0.49% (bottom quartile).
  • Sharpe: 3.04 (bottom quartile).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 6.08% (bottom quartile).
  • Modified duration: 0.49 yrs (upper mid).

ICICI Prudential Money Market Fund

  • Upper mid AUM (₹36,942 Cr).
  • Established history (19+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Low.
  • 1Y return: 7.82% (bottom quartile).
  • 1M return: 0.50% (bottom quartile).
  • Sharpe: 3.08 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.10% (bottom quartile).
  • Modified duration: 0.48 yrs (top quartile).

Tata Money Market Fund

  • Highest AUM (₹41,235 Cr).
  • Established history (22+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 7.80% (bottom quartile).
  • 1M return: 0.51% (upper mid).
  • Sharpe: 3.10 (lower mid).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.16% (lower mid).
  • Modified duration: 0.52 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 (₹20,554 Cr).
  • Established history (16+ yrs).
  • Top rated.
  • Risk profile: Low.
  • 1Y return: 7.86% (top quartile).
  • 1M return: 0.51% (top quartile).
  • Sharpe: 3.26 (top quartile).
  • Information ratio: 0.00 (top quartile).
  • Yield to maturity (debt): 6.16% (upper mid).
  • Modified duration: 0.56 yrs (bottom quartile).
  • Average maturity: 0.56 yrs (bottom quartile).
  • Exit load: NIL.
  • Top sector: Real Estate.
  • Higher exposure to Corporate (bond sector) vs peer median.
  • Conservative stance with elevated cash (~85%).
  • High-quality debt (AAA/AA ~100%).
  • Largest holding 364 Days Tbill (Md 05/03/2026) (~2.3%).

Below is the key information for UTI Money Market Fund

UTI Money Market Fund
Growth
Launch Date 13 Jul 09
NAV (17 Sep 25) ₹3,130.98 ↑ 0.81   (0.03 %)
Net Assets (Cr) ₹20,554 on 31 Jul 25
Category Debt - Money Market
AMC UTI Asset Management Company Ltd
Rating
Risk Low
Expense Ratio 0.25
Sharpe Ratio 3.26
Information Ratio 0
Alpha Ratio 0
Min Investment 10,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 6.16%
Effective Maturity 6 Months 20 Days
Modified Duration 6 Months 20 Days

Growth of 10,000 investment over the years.

DateValue
31 Aug 20₹10,000
31 Aug 21₹10,395
31 Aug 22₹10,811
31 Aug 23₹11,584
31 Aug 24₹12,460
31 Aug 25₹13,450

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 Sep 25

DurationReturns
1 Month 0.5%
3 Month 1.5%
6 Month 4.1%
1 Year 7.9%
3 Year 7.6%
5 Year 6.1%
10 Year
15 Year
Since launch 7.3%
Historical performance (Yearly) on absolute basis
YearReturns
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
Fund Manager information for UTI Money Market Fund
NameSinceTenure
Anurag Mittal1 Dec 213.75 Yr.
Amit Sharma7 Jul 178.16 Yr.

Data below for UTI Money Market Fund as on 31 Jul 25

Asset Allocation
Asset ClassValue
Cash84.8%
Debt14.95%
Other0.25%
Debt Sector Allocation
SectorValue
Corporate52.23%
Cash Equivalent24.59%
Government22.93%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
364 Days Tbill (Md 05/03/2026)
Sovereign Bonds | -
2%₹485 Cr5,000,000,000
364 DTB 19mar2026
Sovereign Bonds | -
2%₹484 Cr5,000,000,000
182 Days Tbill Red 28-05-2026
Sovereign Bonds | -
2%₹466 Cr4,750,000,000
364 Days Tbill Red 12-03-2026
Sovereign Bonds | -
1%₹242 Cr2,500,000,000
Gs CG 12/12/2025 - (Strips) Tb
Sovereign Bonds | -
1%₹222 Cr2,255,700,000
364 DTB 12022026
Sovereign Bonds | -
1%₹195 Cr2,000,000,000
364 DTB 27022026
Sovereign Bonds | -
1%₹194 Cr2,000,000,000
07.00 RJ Sdl 2025
Sovereign Bonds | -
1%₹150 Cr1,500,000,000
HDFC Bank Ltd.
Debentures | -
1%₹145 Cr1,500,000,000
Equitas Small Finance Bank Ltd.
Debentures | -
1%₹144 Cr1,500,000,000

2. 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

  • Lower mid AUM (₹22,461 Cr).
  • Established history (20+ yrs).
  • Rating: 3★ (lower mid).
  • Risk profile: Low.
  • 1Y return: 7.83% (upper mid).
  • 1M return: 0.51% (lower mid).
  • Sharpe: 3.11 (upper mid).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 6.22% (top quartile).
  • Modified duration: 0.53 yrs (bottom quartile).
  • Average maturity: 0.56 yrs (bottom quartile).
  • Exit load: NIL.
  • Top sector: Financial Services.
  • Top bond sector: Corporate.
  • Conservative stance with elevated cash (~84%).
  • High-quality debt (AAA/AA ~100%).
  • Largest holding 364 DTB 27022026 (~1.1%).

Below is the key information for Nippon India Money Market Fund

Nippon India Money Market Fund
Growth
Launch Date 16 Jun 05
NAV (17 Sep 25) ₹4,214.36 ↑ 1.14   (0.03 %)
Net Assets (Cr) ₹22,461 on 31 Jul 25
Category Debt - Money Market
AMC Nippon Life Asset Management Ltd.
Rating
Risk Low
Expense Ratio 0.39
Sharpe Ratio 3.11
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 6.22%
Effective Maturity 6 Months 22 Days
Modified Duration 6 Months 10 Days

Growth of 10,000 investment over the years.

DateValue
31 Aug 20₹10,000
31 Aug 21₹10,400
31 Aug 22₹10,827
31 Aug 23₹11,593
31 Aug 24₹12,471
31 Aug 25₹13,458

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 17 Sep 25

DurationReturns
1 Month 0.5%
3 Month 1.5%
6 Month 4.1%
1 Year 7.8%
3 Year 7.5%
5 Year 6.1%
10 Year
15 Year
Since launch 7.4%
Historical performance (Yearly) on absolute basis
YearReturns
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
Fund Manager information for Nippon India Money Market Fund
NameSinceTenure
Kinjal Desai16 Jul 187.13 Yr.
Vikash Agarwal14 Sep 240.96 Yr.

Data below for Nippon India Money Market Fund as on 31 Jul 25

Asset Allocation
Asset ClassValue
Cash84.06%
Debt15.69%
Other0.25%
Debt Sector Allocation
SectorValue
Corporate45.88%
Cash Equivalent33.88%
Government19.99%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
364 DTB 27022026
Sovereign Bonds | -
1%₹243 Cr25,000,000
364 Days Tbill (Md 05/03/2026)
Sovereign Bonds | -
1%₹243 Cr25,000,000
07.36 UK Gs 2033
Sovereign Bonds | -
1%₹230 Cr22,783,400
Indian Bank
Domestic Bonds | -
1%₹217 Cr4,500
Axis Bank Ltd.
Debentures | -
1%₹188 Cr4,000
↑ 4,000
364 Days Tbill Red 12-03-2026
Sovereign Bonds | -
1%₹170 Cr17,500,000
0% Goi - 16dec25 Strips
Sovereign Bonds | -
1%₹159 Cr16,169,400
AU Small Finance Bank Ltd.
Debentures | -
1%₹143 Cr3,000
08.36 MH Sdl 2026
Sovereign Bonds | -
1%₹137 Cr13,500,000
08.69 Tn SDL 2026
Sovereign Bonds | -
1%₹127 Cr12,500,000

3. 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 (₹4,080 Cr).
  • Oldest track record among peers (23 yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Moderately Low.
  • 1Y return: 7.83% (lower mid).
  • 1M return: 0.49% (bottom quartile).
  • Sharpe: 3.04 (bottom quartile).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 6.08% (bottom quartile).
  • Modified duration: 0.49 yrs (upper mid).
  • Average maturity: 0.52 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 Export-Import Bank Of India (~6.6%).

Below is the key information for Franklin India Savings Fund

Franklin India Savings Fund
Growth
Launch Date 11 Feb 02
NAV (17 Sep 25) ₹50.9256 ↑ 0.01   (0.03 %)
Net Assets (Cr) ₹4,080 on 31 Jul 25
Category Debt - Money Market
AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd
Rating
Risk Moderately Low
Expense Ratio 0.3
Sharpe Ratio 3.04
Information Ratio 0
Alpha Ratio 0
Min Investment 10,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 6.08%
Effective Maturity 6 Months 7 Days
Modified Duration 5 Months 26 Days

Growth of 10,000 investment over the years.

DateValue
31 Aug 20₹10,000
31 Aug 21₹10,370
31 Aug 22₹10,744
31 Aug 23₹11,483
31 Aug 24₹12,338
31 Aug 25₹13,315

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 ₹197,169.
Net Profit of ₹17,169
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 Sep 25

DurationReturns
1 Month 0.5%
3 Month 1.5%
6 Month 4.1%
1 Year 7.8%
3 Year 7.4%
5 Year 5.9%
10 Year
15 Year
Since launch 7.1%
Historical performance (Yearly) on absolute basis
YearReturns
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
Fund Manager information for Franklin India Savings Fund
NameSinceTenure
Rahul Goswami6 Oct 231.91 Yr.
Rohan Maru10 Oct 240.89 Yr.
Chandni Gupta30 Apr 241.34 Yr.

Data below for Franklin India Savings Fund as on 31 Jul 25

Asset Allocation
Asset ClassValue
Cash88.09%
Debt11.67%
Other0.23%
Debt Sector Allocation
SectorValue
Corporate41.85%
Cash Equivalent32.94%
Government24.97%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
364 Days Tbill (Md 05/03/2026)
Sovereign Bonds | -
5%₹218 Cr22,500,000
Kotak Mahindra Bank Ltd.
Debentures | -
2%₹72 Cr1,500
91 Days Tbill (Md 28/08/2025)
Sovereign Bonds | -
2%₹70 Cr7,000,000
↑ 7,000,000
364 Days Tbill Red 12-03-2026
Sovereign Bonds | -
1%₹48 Cr5,000,000
Indian Bank
Domestic Bonds | -
1%₹48 Cr1,000
HDFC Bank Ltd.
Debentures | -
1%₹48 Cr1,000
08.39 RJ UDAY 2026
Domestic Bonds | -
1%₹30 Cr2,860,000
Corporate Debt Market Development Fund Class A2
Investment Fund | -
0%₹9 Cr8,236
364 DTB 22012026
Sovereign Bonds | -
0%₹3 Cr316,500
Export-Import Bank Of India
Certificate of Deposit | -
7%₹266 Cr5,500

4. 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 (₹36,942 Cr).
  • Established history (19+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Low.
  • 1Y return: 7.82% (bottom quartile).
  • 1M return: 0.50% (bottom quartile).
  • Sharpe: 3.08 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.10% (bottom quartile).
  • Modified duration: 0.48 yrs (top quartile).
  • Average maturity: 0.52 yrs (top quartile).
  • Exit load: NIL.
  • Top sector: Financial Services.
  • Top bond sector: Corporate.
  • Conservative stance with elevated cash (~90%).
  • High-quality debt (AAA/AA ~100%).
  • Largest holding 364 Days Tbill Red 12-03-2026 (~4.3%).

Below is the key information for ICICI Prudential Money Market Fund

ICICI Prudential Money Market Fund
Growth
Launch Date 9 Mar 06
NAV (17 Sep 25) ₹385.272 ↑ 0.10   (0.03 %)
Net Assets (Cr) ₹36,942 on 31 Jul 25
Category Debt - Money Market
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Low
Expense Ratio 0.32
Sharpe Ratio 3.08
Information Ratio 0
Alpha Ratio 0
Min Investment 500
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 6.1%
Effective Maturity 6 Months 6 Days
Modified Duration 5 Months 24 Days

Growth of 10,000 investment over the years.

DateValue
31 Aug 20₹10,000
31 Aug 21₹10,389
31 Aug 22₹10,787
31 Aug 23₹11,551
31 Aug 24₹12,422
31 Aug 25₹13,404

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 17 Sep 25

DurationReturns
1 Month 0.5%
3 Month 1.5%
6 Month 4.1%
1 Year 7.8%
3 Year 7.5%
5 Year 6.1%
10 Year
15 Year
Since launch 7.2%
Historical performance (Yearly) on absolute basis
YearReturns
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
Fund Manager information for ICICI Prudential Money Market Fund
NameSinceTenure
Manish Banthia12 Jun 232.22 Yr.
Nikhil Kabra3 Aug 169.08 Yr.

Data below for ICICI Prudential Money Market Fund as on 31 Jul 25

Asset Allocation
Asset ClassValue
Cash89.86%
Debt9.93%
Other0.22%
Debt Sector Allocation
SectorValue
Corporate41.37%
Cash Equivalent37.62%
Government20.79%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
364 Days Tbill Red 12-03-2026
Sovereign Bonds | -
4%₹1,614 Cr166,500,000
↓ -26,000,000
India (Republic of)
- | -
1%₹494 Cr50,000,000
↑ 50,000,000
91 Days Tbill Red 30-10-2025
Sovereign Bonds | -
1%₹490 Cr49,500,000
↓ -500,000
364 Days Tbill (Md 05/03/2026)
Sovereign Bonds | -
1%₹388 Cr40,000,000
↓ -2,500,000
Indian Bank
Domestic Bonds | -
1%₹241 Cr5,000
HDFC Bank Ltd.
Debentures | -
1%₹193 Cr4,000
08.22 Tn SDL 2025dec
Sovereign Bonds | -
0%₹146 Cr14,500,000
National Bank for Agriculture and Rural Development
Domestic Bonds | -
0%₹145 Cr3,000
08.20 GJ Sdl 2025dec
Sovereign Bonds | -
0%₹141 Cr14,000,000
08.59 KA Sdl 2025
Sovereign Bonds | -
0%₹141 Cr14,000,000

5. 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 (₹41,235 Cr).
  • Established history (22+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 7.80% (bottom quartile).
  • 1M return: 0.51% (upper mid).
  • Sharpe: 3.10 (lower mid).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.16% (lower mid).
  • Modified duration: 0.52 yrs (lower mid).
  • Average maturity: 0.52 yrs (upper mid).
  • Exit load: NIL.
  • Higher exposure to Financial Services vs peer median.
  • Top bond sector: Corporate.
  • Conservative stance with elevated cash (~81%).
  • High-quality debt (AAA/AA ~100%).
  • Largest holding 5.63% Govt Stock 2026 (~3.5%).

Below is the key information for Tata Money Market Fund

Tata Money Market Fund
Growth
Launch Date 22 May 03
NAV (17 Sep 25) ₹4,793.93 ↑ 1.31   (0.03 %)
Net Assets (Cr) ₹41,235 on 31 Jul 25
Category Debt - Money Market
AMC Tata Asset Management Limited
Rating
Risk Low
Expense Ratio 0.44
Sharpe Ratio 3.1
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 6.16%
Effective Maturity 6 Months 7 Days
Modified Duration 6 Months 7 Days

Growth of 10,000 investment over the years.

DateValue
31 Aug 20₹10,000
31 Aug 21₹10,420
31 Aug 22₹10,826
31 Aug 23₹11,591
31 Aug 24₹12,469
31 Aug 25₹13,450

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 Sep 25

DurationReturns
1 Month 0.5%
3 Month 1.5%
6 Month 4.1%
1 Year 7.8%
3 Year 7.5%
5 Year 6.1%
10 Year
15 Year
Since launch 6.8%
Historical performance (Yearly) on absolute basis
YearReturns
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
Fund Manager information for Tata Money Market Fund
NameSinceTenure
Amit Somani16 Oct 1311.88 Yr.

Data below for Tata Money Market Fund as on 31 Jul 25

Asset Allocation
Asset ClassValue
Cash80.58%
Debt19.2%
Other0.22%
Debt Sector Allocation
SectorValue
Corporate44.04%
Cash Equivalent32.21%
Government23.52%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
5.63% Govt Stock 2026
Sovereign Bonds | -
4%₹1,465 Cr146,500,000
↑ 2,000,000
182 Days Tbill Red 28-05-2026
Sovereign Bonds | -
2%₹956 Cr97,500,000
↓ -2,500,000
364 DTB 19mar2026
Sovereign Bonds | -
2%₹852 Cr88,000,000
↓ -2,500,000
91 Days Tbill Red 30-10-2025
Sovereign Bonds | -
2%₹672 Cr68,000,000
↓ -7,000,000
National Bank for Agriculture and Rural Development
Domestic Bonds | -
1%₹487 Cr10,000
364 DTB 27022026
Sovereign Bonds | -
1%₹461 Cr47,500,000
India (Republic of)
- | -
1%₹440 Cr45,000,000
↓ -25,000,000
08.30 RJ Sdl 2026
Sovereign Bonds | -
1%₹429 Cr42,500,000
India (Republic of)
- | -
1%₹393 Cr40,000,000
Bank of Baroda
Debentures | -
1%₹388 Cr8,000
↑ 8,000

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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