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What are Money Market Funds?

Updated on August 6, 2026 , 19164 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 The difference between this and a term deposit in a Bank is that CDs can’t be withdrawn.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 ₹3,309.15
↑ 0.74
₹17,5571.83.46.37.37.57.58%6M 20D6M 20D
Tata Money Market Fund Growth ₹5,064.93
↑ 1.08
₹32,1501.83.46.37.37.47.79%7M 1D7M 1D
Aditya Birla Sun Life Money Manager Fund Growth ₹396.886
↑ 0.08
₹27,3831.83.46.37.37.46.95%6M 25D6M 29D
Kotak Money Market Scheme Growth ₹4,816.45
↑ 1.14
₹28,7621.83.46.37.37.47.71%7M 6D7M 6D
Bandhan Money Manager Fund Growth ₹43.2225
↑ 0.01
₹14,4661.83.36.377.37.75%7M 21D7M 21D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 7 Aug 26

Research Highlights & Commentary of 5 Funds showcased

CommentaryUTI Money Market FundTata Money Market FundAditya Birla Sun Life Money Manager FundKotak Money Market SchemeBandhan Money Manager Fund
Point 1Bottom quartile AUM (₹17,557 Cr).Highest AUM (₹32,150 Cr).Lower mid AUM (₹27,383 Cr).Upper mid AUM (₹28,762 Cr).Bottom quartile AUM (₹14,466 Cr).
Point 2Established history (17+ yrs).Oldest track record among peers (23 yrs).Established history (20+ yrs).Established history (23+ yrs).Established history (23+ 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: 6.32% (top quartile).1Y return: 6.28% (upper mid).1Y return: 6.28% (lower mid).1Y return: 6.28% (bottom quartile).1Y return: 6.27% (bottom quartile).
Point 61M return: 0.57% (top quartile).1M return: 0.56% (bottom quartile).1M return: 0.57% (lower mid).1M return: 0.56% (bottom quartile).1M return: 0.57% (upper mid).
Point 7Sharpe: 0.81 (lower mid).Sharpe: 0.82 (top quartile).Sharpe: 0.69 (bottom quartile).Sharpe: 0.75 (bottom quartile).Sharpe: 0.81 (upper 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% (top quartile).Yield to maturity (debt): 6.95% (bottom quartile).Yield to maturity (debt): 7.71% (lower mid).Yield to maturity (debt): 7.75% (upper mid).
Point 10Modified duration: 0.56 yrs (top quartile).Modified duration: 0.59 yrs (lower mid).Modified duration: 0.57 yrs (upper mid).Modified duration: 0.60 yrs (bottom quartile).Modified duration: 0.64 yrs (bottom quartile).

UTI Money Market Fund

  • Bottom quartile AUM (₹17,557 Cr).
  • Established history (17+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Low.
  • 1Y return: 6.32% (top quartile).
  • 1M return: 0.57% (top quartile).
  • Sharpe: 0.81 (lower mid).
  • Information ratio: 0.00 (top quartile).
  • Yield to maturity (debt): 7.58% (bottom quartile).
  • Modified duration: 0.56 yrs (top quartile).

Tata Money Market Fund

  • Highest AUM (₹32,150 Cr).
  • Oldest track record among peers (23 yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 6.28% (upper mid).
  • 1M return: 0.56% (bottom quartile).
  • Sharpe: 0.82 (top quartile).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 7.79% (top quartile).
  • Modified duration: 0.59 yrs (lower mid).

Aditya Birla Sun Life Money Manager Fund

  • Lower mid AUM (₹27,383 Cr).
  • Established history (20+ yrs).
  • Top rated.
  • Risk profile: Low.
  • 1Y return: 6.28% (lower mid).
  • 1M return: 0.57% (lower mid).
  • Sharpe: 0.69 (bottom quartile).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 6.95% (bottom quartile).
  • Modified duration: 0.57 yrs (upper mid).

Kotak Money Market Scheme

  • Upper mid AUM (₹28,762 Cr).
  • Established history (23+ yrs).
  • Rating: 4★ (lower mid).
  • Risk profile: Low.
  • 1Y return: 6.28% (bottom quartile).
  • 1M return: 0.56% (bottom quartile).
  • Sharpe: 0.75 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 7.71% (lower mid).
  • Modified duration: 0.60 yrs (bottom quartile).

Bandhan Money Manager Fund

  • Bottom quartile AUM (₹14,466 Cr).
  • Established history (23+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Moderately Low.
  • 1Y return: 6.27% (bottom quartile).
  • 1M return: 0.57% (upper mid).
  • Sharpe: 0.81 (upper mid).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 7.75% (upper mid).
  • Modified duration: 0.64 yrs (bottom 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 (₹17,557 Cr).
  • Established history (17+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Low.
  • 1Y return: 6.32% (top quartile).
  • 1M return: 0.57% (top quartile).
  • Sharpe: 0.81 (lower mid).
  • Information ratio: 0.00 (top quartile).
  • Yield to maturity (debt): 7.58% (bottom quartile).
  • Modified duration: 0.56 yrs (top quartile).
  • Average maturity: 0.56 yrs (top quartile).
  • Exit load: NIL.
  • Top sector: Real Estate.
  • Top bond sector: Corporate.
  • Conservative stance with elevated cash (~89%).
  • High-quality debt (AAA/AA ~100%).
  • Largest holding India (Republic of) (~3.6%).

Below is the key information for UTI Money Market Fund

UTI Money Market Fund
Growth
Launch Date 13 Jul 09
NAV (07 Aug 26) ₹3,309.15 ↑ 0.74   (0.02 %)
Net Assets (Cr) ₹17,557 on 30 Jun 26
Category Debt - Money Market
AMC UTI Asset Management Company Ltd
Rating
Risk Low
Expense Ratio 0.25
Sharpe Ratio 0.81
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
31 Jul 21₹10,000
31 Jul 22₹10,385
31 Jul 23₹11,121
31 Jul 24₹11,962
31 Jul 25₹12,929
31 Jul 26₹13,736

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 7 Aug 26

DurationReturns
1 Month 0.6%
3 Month 1.8%
6 Month 3.4%
1 Year 6.3%
3 Year 7.3%
5 Year 6.6%
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 214.67 Yr.
Amit Sharma7 Jul 179.07 Yr.

Data below for UTI Money Market Fund as on 30 Jun 26

Asset Allocation
Asset ClassValue
Cash89.45%
Debt10.24%
Other0.32%
Debt Sector Allocation
SectorValue
Corporate48.45%
Cash Equivalent33.24%
Government18%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
India (Republic of)
- | -
4%₹657 Cr6,629,850,000
Indusind Bank Ltd.
Debentures | -
2%₹340 Cr3,500,000,000
Tbill
Sovereign Bonds | -
2%₹298 Cr3,000,000,000
Tbill
Sovereign Bonds | -
2%₹298 Cr3,000,000,000
5.74% Govt Stock 2026
Sovereign Bonds | -
2%₹280 Cr2,800,000,000
UCO Bank
Domestic Bonds | -
1%₹234 Cr2,500,000,000
↑ 2,500,000,000
Tbill
Sovereign Bonds | -
1%₹199 Cr2,000,000,000
Axis Bank Ltd.
Debentures | -
1%₹192 Cr2,000,000,000
Indian Overseas Bank
Debentures | -
1%₹192 Cr2,000,000,000
Axis Bank Ltd.
Debentures | -
1%₹192 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 (₹32,150 Cr).
  • Oldest track record among peers (23 yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 6.28% (upper mid).
  • 1M return: 0.56% (bottom quartile).
  • Sharpe: 0.82 (top quartile).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 7.79% (top quartile).
  • 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 (~87%).
  • High-quality debt (AAA/AA ~100%).
  • Largest holding India (Republic of) (~4.2%).

Below is the key information for Tata Money Market Fund

Tata Money Market Fund
Growth
Launch Date 22 May 03
NAV (07 Aug 26) ₹5,064.93 ↑ 1.08   (0.02 %)
Net Assets (Cr) ₹32,150 on 30 Jun 26
Category Debt - Money Market
AMC Tata Asset Management Limited
Rating
Risk Low
Expense Ratio 0.44
Sharpe Ratio 0.82
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
31 Jul 21₹10,000
31 Jul 22₹10,375
31 Jul 23₹11,103
31 Jul 24₹11,944
31 Jul 25₹12,900
31 Jul 26₹13,701

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 7 Aug 26

DurationReturns
1 Month 0.6%
3 Month 1.8%
6 Month 3.4%
1 Year 6.3%
3 Year 7.3%
5 Year 6.5%
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 1312.8 Yr.
Harsh Dave1 Jun 260.17 Yr.

Data below for Tata Money Market Fund as on 30 Jun 26

Asset Allocation
Asset ClassValue
Cash86.52%
Debt13.18%
Other0.3%
Debt Sector Allocation
SectorValue
Corporate47.46%
Cash Equivalent33.43%
Government18.8%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
India (Republic of)
- | -
4%₹1,411 Cr142,500,000
India (Republic of)
- | -
3%₹912 Cr93,500,000
↑ 93,500,000
Indian Bank
Domestic Bonds | -
2%₹766 Cr15,500
↓ -4,000
Axis Bank Ltd.
Debentures | -
2%₹718 Cr15,000
Indian Overseas Bank
Debentures | -
2%₹670 Cr14,000
Equitas Small Finance Bank Ltd.
Debentures | -
2%₹571 Cr12,000
India (Republic of)
- | -
2%₹535 Cr55,000,000
↑ 55,000,000
7.86% Karnataka Sdl 2027
Sovereign Bonds | -
1%₹491 Cr48,500,000
Tbill
Sovereign Bonds | -
1%₹446 Cr45,000,000
India (Republic of)
- | -
1%₹401 Cr40,500,000

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 (₹27,383 Cr).
  • Established history (20+ yrs).
  • Top rated.
  • Risk profile: Low.
  • 1Y return: 6.28% (lower mid).
  • 1M return: 0.57% (lower mid).
  • Sharpe: 0.69 (bottom quartile).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 6.95% (bottom quartile).
  • Modified duration: 0.57 yrs (upper mid).
  • Average maturity: 0.58 yrs (upper mid).
  • Exit load: NIL.
  • Higher exposure to Financial Services vs peer median.
  • Higher exposure to Corporate (bond sector) vs peer median.
  • Conservative stance with elevated cash (~66%).
  • High-quality debt (AAA/AA ~100%).
  • Largest holding Indusind Bank Ltd. (~4.8%).

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 (07 Aug 26) ₹396.886 ↑ 0.08   (0.02 %)
Net Assets (Cr) ₹27,383 on 30 Jun 26
Category Debt - Money Market
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Low
Expense Ratio 0.35
Sharpe Ratio 0.69
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 6.95%
Effective Maturity 6 Months 29 Days
Modified Duration 6 Months 25 Days

Growth of 10,000 investment over the years.

DateValue
31 Jul 21₹10,000
31 Jul 22₹10,381
31 Jul 23₹11,117
31 Jul 24₹11,961
31 Jul 25₹12,918
31 Jul 26₹13,720

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 7 Aug 26

DurationReturns
1 Month 0.6%
3 Month 1.8%
6 Month 3.4%
1 Year 6.3%
3 Year 7.3%
5 Year 6.6%
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 1115.06 Yr.
Anuj Jain22 Mar 215.36 Yr.
Mohit Sharma1 Apr 179.34 Yr.

Data below for Aditya Birla Sun Life Money Manager Fund as on 30 Jun 26

Asset Allocation
Asset ClassValue
Cash65.54%
Debt34.46%
Debt Sector Allocation
SectorValue
Corporate55.48%
Cash Equivalent32.51%
Government12.01%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Indusind Bank Ltd.
Debentures | -
5%₹1,393 Cr29,000
Indusind Bank Ltd.
Debentures | -
4%₹1,112 Cr22,900
Axis Bank Ltd.
Debentures | -
3%₹922 Cr19,000
Federal Bank Ltd.
Debentures | -
3%₹911 Cr19,000
Gujarat State Development Loans
Sovereign Bonds | -
3%₹797 Cr79,327,600
Karur Vysya Bank Ltd.
Debentures | -
2%₹479 Cr10,000
Tbill
Sovereign Bonds | -
1%₹396 Cr40,000,000
Indian Bank
Domestic Bonds | -
1%₹392 Cr8,000
↑ 8,000
7.49% Gujarat Sgs 2026
Sovereign Bonds | -
1%₹326 Cr32,500,000
7.43% Gujarat Sgs 2027
Sovereign Bonds | -
1%₹247 Cr24,500,000

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 (₹28,762 Cr).
  • Established history (23+ yrs).
  • Rating: 4★ (lower mid).
  • Risk profile: Low.
  • 1Y return: 6.28% (bottom quartile).
  • 1M return: 0.56% (bottom quartile).
  • Sharpe: 0.75 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 7.71% (lower mid).
  • 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 (~92%).
  • High-quality debt (AAA/AA ~100%).
  • Largest holding India (Republic of) (~4.5%).

Below is the key information for Kotak Money Market Scheme

Kotak Money Market Scheme
Growth
Launch Date 14 Jul 03
NAV (07 Aug 26) ₹4,816.45 ↑ 1.14   (0.02 %)
Net Assets (Cr) ₹28,762 on 30 Jun 26
Category Debt - Money Market
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Low
Expense Ratio 0.36
Sharpe Ratio 0.75
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
31 Jul 21₹10,000
31 Jul 22₹10,386
31 Jul 23₹11,108
31 Jul 24₹11,943
31 Jul 25₹12,897
31 Jul 26₹13,697

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 7 Aug 26

DurationReturns
1 Month 0.6%
3 Month 1.8%
6 Month 3.4%
1 Year 6.3%
3 Year 7.3%
5 Year 6.5%
10 Year
15 Year
Since launch 7.1%
Historical performance (Yearly) on absolute basis
YearReturns
2025 7.4%
2024 7.7%
2023 7.3%
2022 4.9%
2021 3.7%
2020 5.7%
2019 8%
2018 7.7%
2017 6.7%
2016 7.7%
Fund Manager information for Kotak Money Market Scheme
NameSinceTenure
Deepak Agrawal1 Nov 0619.76 Yr.
Manu Sharma1 Nov 223.75 Yr.

Data below for Kotak Money Market Scheme as on 30 Jun 26

Asset Allocation
Asset ClassValue
Cash92.2%
Debt7.48%
Other0.32%
Debt Sector Allocation
SectorValue
Corporate45.8%
Cash Equivalent34.83%
Government19.05%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
India (Republic of)
- | -
5%₹1,338 Cr135,000,000
Tbill
Sovereign Bonds | -
3%₹992 Cr100,000,000
Tbill
Sovereign Bonds | -
3%₹745 Cr75,000,000
Indusind Bank Ltd.
Debentures | -
2%₹721 Cr75,000
Punjab National Bank
Debentures | -
2%₹482 Cr50,000
06/08/2026 Maturing 182 DTB
Sovereign Bonds | -
1%₹399 Cr40,000,000
Tbill
Sovereign Bonds | -
1%₹372 Cr37,500,000
Federal Bank Ltd.
Debentures | -
1%₹361 Cr37,500
India (Republic of)
- | -
1%₹249 Cr25,000,000
Karur Vysya Bank Ltd.
Debentures | -
1%₹240 Cr25,000

5. Bandhan Money Manager Fund

(Erstwhile IDFC Money Manager Fund - Treasury Plan)

Seek to generate stable returns with a low risk strategy by creating a portfolio that is substantially invested in good quality floating rate debt or money market instruments, fixed rate debt or money market instruments swapped for floating returns and fixed rate debt and money market instruments. However, there can be no assurance that the investment objectives of the scheme will be realized.

Research Highlights for Bandhan Money Manager Fund

  • Bottom quartile AUM (₹14,466 Cr).
  • Established history (23+ yrs).
  • Rating: 3★ (bottom quartile).
  • Risk profile: Moderately Low.
  • 1Y return: 6.27% (bottom quartile).
  • 1M return: 0.57% (upper mid).
  • Sharpe: 0.81 (upper mid).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 7.75% (upper mid).
  • Modified duration: 0.64 yrs (bottom quartile).
  • Average maturity: 0.64 yrs (bottom quartile).
  • Exit load: NIL.
  • Top sector: Financial Services.
  • Top bond sector: Corporate.
  • Conservative stance with elevated cash (~83%).
  • High-quality debt (AAA/AA ~100%).
  • Largest holding 5.74% Govt Stock 2026 (~3.4%).

Below is the key information for Bandhan Money Manager Fund

Bandhan Money Manager Fund
Growth
Launch Date 18 Feb 03
NAV (07 Aug 26) ₹43.2225 ↑ 0.01   (0.02 %)
Net Assets (Cr) ₹14,466 on 30 Jun 26
Category Debt - Money Market
AMC IDFC Asset Management Company Limited
Rating
Risk Moderately Low
Expense Ratio 0.58
Sharpe Ratio 0.81
Information Ratio 0
Alpha Ratio 0
Min Investment 100
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.75%
Effective Maturity 7 Months 21 Days
Modified Duration 7 Months 21 Days

Growth of 10,000 investment over the years.

DateValue
31 Jul 21₹10,000
31 Jul 22₹10,304
31 Jul 23₹10,949
31 Jul 24₹11,691
31 Jul 25₹12,612
31 Jul 26₹13,391

Bandhan 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 Bandhan 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 7 Aug 26

DurationReturns
1 Month 0.6%
3 Month 1.8%
6 Month 3.3%
1 Year 6.3%
3 Year 7%
5 Year 6%
10 Year
15 Year
Since launch 6.4%
Historical performance (Yearly) on absolute basis
YearReturns
2025 7.3%
2024 7.2%
2023 6.7%
2022 4%
2021 2.9%
2020 5%
2019 6.7%
2018 6.2%
2017 6%
2016 8.1%
Fund Manager information for Bandhan Money Manager Fund
NameSinceTenure
Gautam Kaul1 Dec 214.67 Yr.
Brijesh Shah12 Jul 215.05 Yr.

Data below for Bandhan Money Manager Fund as on 30 Jun 26

Asset Allocation
Asset ClassValue
Cash82.81%
Debt16.9%
Other0.29%
Debt Sector Allocation
SectorValue
Corporate47.65%
Cash Equivalent31.08%
Government20.98%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
5.74% Govt Stock 2026
Sovereign Bonds | -
3%₹469 Cr46,901,500
↓ -6,500,000
National Bank for Agriculture and Rural Development
Domestic Bonds | -
2%₹334 Cr35,000,000
Tbill
Sovereign Bonds | -
2%₹323 Cr32,500,000
↓ -55,000,000
Canara Bank
Domestic Bonds | -
2%₹304 Cr32,500,000
↑ 32,500,000
8.15% Govt Stock 2026
Sovereign Bonds | -
2%₹217 Cr21,500,000
ICICI Bank Ltd.
Debentures | -
1%₹191 Cr20,000,000
Axis Bank Ltd.
Debentures | -
1%₹144 Cr15,000,000
↑ 10,000,000
7.08% Karnataka Sdl 2026
Sovereign Bonds | -
1%₹106 Cr10,500,000
Tbill
Sovereign Bonds | -
1%₹99 Cr10,000,000
HDFC Bank Ltd.
Debentures | -
1%₹96 Cr10,000,000

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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