As investors, striking a balance between risk, returns, and liquidity is crucial. Although debt mutual funds often enable investors to reduce risk, they are usually less liquid than equity mutual funds. However, with money market mutual funds, investors can gain exposure to debt instruments while maintaining liquidity. Read on as we explore the best money market mutual funds, how they work, and the key advantages & risks of investing in them.
A money market mutual fund is a debt mutual fund that invests in short-term debt securities with maturities of up to one year. These funds also invest in cash and cash equivalents. The primary goal of a money market mutual fund is to reduce risk by investing in debt securities with high credit ratings and to provide investors with high liquidity by investing in securities with shorter maturities.
Money market mutual funds play a significant role in the broader financial markets by investing in securities such as Treasury bills, Certificates of Deposit, commercial paper, and repurchase agreements. A money market mutual fund aims to offer stability by keeping risk to a minimum, leading to fewer fluctuations in its net asset value (NAV).
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| Fund Name | Category | Risk | NAV | Expense Ratio | 1Y Returns | 3Y Returns | 5Y Returns | Rating | Fund Size (in Cr) | Exit Load |
|---|---|---|---|---|---|---|---|---|---|---|
Tata Money Market Fund | Debt | Low to Moderate | 4,929.59 | 0.15 | 7.8% | 7.8% | 6.4% | 5 | ₹38,052 | - |
Axis Money Market Fund | Debt | Moderate | 1,479.61 | 0.17 | 7.8% | 7.7% | 6.3% | 5 | ₹22,806 | - |
Aditya Birla Sun Life Money Manager Fund | Debt | Moderate | 384.02 | 0.22 | 7.7% | 7.7% | 6.3% | 4 | ₹29,881 | - |
Nippon India Money Market Fund | Debt | Moderate | 4,307.71 | 0.22 | 7.8% | 7.7% | 6.3% | 4 | ₹23,260 | - |
Franklin India Money Market Fund | Debt | Low to Moderate | 53.09 | 0.14 | 7.8% | 7.7% | 6.1% | 4 | ₹4,440 | - |
Mirae Asset Money Market Fund | Debt | Low to Moderate | 1,308.92 | 0.08 | 7.8% | 7.6% | NA | 4 | ₹3,514 | - |
UTI Money Market Fund | Debt | Moderate | 3,197.40 | 0.13 | 7.7% | 7.7% | 6.3% | 3 | ₹20,351 | - |
HDFC Money Market Fund | Debt | Low to Moderate | 5,971.02 | 0.23 | 7.7% | 7.7% | 6.3% | 3 | ₹36,903 | - |
Bandhan Money Market Fund | Debt | Low to Moderate | 44.71 | 0.1 | 7.7% | 7.7% | 6.1% | 3 | ₹14,372 | - |
ICICI Prudential Money Market Fund | Debt | Low to Moderate | 393.43 | 0.21 | 7.7% | 7.7% | 6.2% | 3 | ₹34,019 | - |
Kotak Money Market Fund | Debt | Moderate | 4,642.24 | 0.21 | 7.7% | 7.7% | 6.2% | 3 | ₹32,820 | - |
SBI Savings Fund | Debt | Moderate | 45.54 | 0.25 | 7.7% | 7.6% | 6.2% | 3 | ₹37,973 | - |
HSBC Money Market Fund | Debt | Low to Moderate | 28.35 | 0.15 | 7.7% | 7.5% | 6.0% | 3 | ₹5,525 | - |
Edelweiss Money Market Fund | Debt | Low to Moderate | 32.09 | 0.06 | 7.6% | 7.5% | 6.0% | 3 | ₹1,663 | - |
Sundaram Money Market Fund | Debt | Moderate | 15.46 | 0.17 | 7.7% | 7.4% | 6.0% | 3 | ₹1,987 | - |
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Now let us jump and check about these top 15 mutual fund schemes.
Fund Performance: The Tata Money Market Fund has given 7.83% annualized returns in the past three years and 6.41% in the last 5 years. The Tata Money Market Fund comes under the Debt category of Tata Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Tata Money Market Fund via lump sum is ₹5,000 and via SIP is ₹500.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹38,052Cr |
| 1Y Returns | 7.8% |
Fund Performance: The Axis Money Market Fund has given 7.74% annualized returns in the past three years and 6.29% in the last 5 years. The Axis Money Market Fund comes under the Debt category of Axis Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Axis Money Market Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹22,806Cr |
| 1Y Returns | 7.8% |
Fund Performance: The Aditya Birla Sun Life Money Manager Fund has given 7.73% annualized returns in the past three years and 6.3% in the last 5 years. The Aditya Birla Sun Life Money Manager Fund comes under the Debt category of Aditya Birla Sun Life Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Aditya Birla Sun Life Money Manager Fund via lump sum is ₹1,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹1,000 |
|---|---|
| AUM | ₹29,881Cr |
| 1Y Returns | 7.7% |
Fund Performance: The Nippon India Money Market Fund has given 7.72% annualized returns in the past three years and 6.31% in the last 5 years. The Nippon India Money Market Fund comes under the Debt category of Nippon India Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Nippon India Money Market Fund via lump sum is ₹500 and via SIP is ₹100.
| Min Investment Amt | ₹500 |
|---|---|
| AUM | ₹23,260Cr |
| 1Y Returns | 7.8% |
Fund Performance: The Franklin India Money Market Fund has given 7.67% annualized returns in the past three years and 6.14% in the last 5 years. The Franklin India Money Market Fund comes under the Debt category of Franklin Templeton Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Franklin India Money Market Fund via lump sum is ₹10,000 and via SIP is ₹500.
| Min Investment Amt | ₹10,000 |
|---|---|
| AUM | ₹4,440Cr |
| 1Y Returns | 7.8% |
Fund Performance: The Mirae Asset Money Market Fund comes under the Debt category of Mirae Asset Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Mirae Asset Money Market Fund via lump sum is ₹5,000 and via SIP is ₹99.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹3,514Cr |
| 1Y Returns | 7.8% |
Fund Performance: The UTI Money Market Fund has given 7.69% annualized returns in the past three years and 6.26% in the last 5 years. The UTI Money Market Fund comes under the Debt category of UTI Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in UTI Money Market Fund via lump sum is ₹500 and via SIP is ₹500.
| Min Investment Amt | ₹500 |
|---|---|
| AUM | ₹20,351Cr |
| 1Y Returns | 7.7% |
Fund Performance: The HDFC Money Market Fund has given 7.68% annualized returns in the past three years and 6.25% in the last 5 years. The HDFC Money Market Fund comes under the Debt category of HDFC Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in HDFC Money Market Fund via lump sum is ₹100 and via SIP is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹36,903Cr |
| 1Y Returns | 7.7% |
Fund Performance: The Bandhan Money Market Fund has given 7.66% annualized returns in the past three years and 6.14% in the last 5 years. The Bandhan Money Market Fund comes under the Debt category of IDFC Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Bandhan Money Market Fund via lump sum is ₹100 and via SIP is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹14,372Cr |
| 1Y Returns | 7.7% |
Fund Performance: The ICICI Prudential Money Market Fund has given 7.66% annualized returns in the past three years and 6.21% in the last 5 years. The ICICI Prudential Money Market Fund comes under the Debt category of ICICI Prudential Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Money Market Fund via lump sum is ₹500 and via SIP is ₹100.
| Min Investment Amt | ₹500 |
|---|---|
| AUM | ₹34,019Cr |
| 1Y Returns | 7.7% |
Fund Performance: The Kotak Money Market Fund has given 7.65% annualized returns in the past three years and 6.21% in the last 5 years. The Kotak Money Market Fund comes under the Debt category of Kotak Mahindra Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Kotak Money Market Fund via lump sum is ₹100 and via SIP is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹32,820Cr |
| 1Y Returns | 7.7% |
Fund Performance: The SBI Savings Fund has given 7.64% annualized returns in the past three years and 6.21% in the last 5 years. The SBI Savings Fund comes under the Debt category of SBI Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in SBI Savings Fund via lump sum is ₹500 and via SIP is ₹500.
| Min Investment Amt | ₹500 |
|---|---|
| AUM | ₹37,973Cr |
| 1Y Returns | 7.7% |
Fund Performance: The HSBC Money Market Fund has given 7.55% annualized returns in the past three years and 5.99% in the last 5 years. The HSBC Money Market Fund comes under the Debt category of HSBC Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in HSBC Money Market Fund via lump sum is ₹5,000 and via SIP is ₹1,000.
| Min Investment Amt | ₹5,000 |
|---|---|
| AUM | ₹5,525Cr |
| 1Y Returns | 7.7% |
Fund Performance: The Edelweiss Money Market Fund has given 7.51% annualized returns in the past three years and 5.96% in the last 5 years. The Edelweiss Money Market Fund comes under the Debt category of Edelweiss Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Edelweiss Money Market Fund via lump sum is ₹100 and via SIP is ₹100.
| Min Investment Amt | ₹100 |
|---|---|
| AUM | ₹1,663Cr |
| 1Y Returns | 7.6% |
Fund Performance: The Sundaram Money Market Fund has given 7.44% annualized returns in the past three years and 5.99% in the last 5 years. The Sundaram Money Market Fund comes under the Debt category of Sundaram Mutual Funds.
Minimum Investment Amount: The minimum amount required to invest in Sundaram Money Market Fund via lump sum is ₹1,000 and via SIP is ₹250.
| Min Investment Amt | ₹1,000 |
|---|---|
| AUM | ₹1,987Cr |
| 1Y Returns | 7.7% |
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