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Fund categories
Equity
Debt
Fund categories
Equity
Debt
Money Market Funds
Fund categories
Union Money Market Fund - Direct (G)
Equity | Money Market Fund
1Y returns
6.23%Min. Invest
₹5,000
AUM
₹1,135.78 Cr
LIC MF Money Market Fund - Direct (G)
Equity | Money Market Fund
1Y returns
6.21%Min. Invest
₹5,000
AUM
₹4,897.66 Cr
Tata Money Market Fund - Direct (G)
Equity | Money Market Fund
1Y returns
6.20%Min. Invest
₹5,000
AUM
₹33,029.98 Cr
Bandhan Money Market Fund - Direct (G)
Equity | Money Market Fund
1Y returns
6.17%Min. Invest
₹100
AUM
₹14,977.42 Cr
Bank of India Money Market Fund - Direct (G)
Equity | Money Market Fund
1Y returns
6.17%Min. Invest
₹5,000
AUM
₹461.38 Cr
AXIS Money Market Fund - Direct (G)
Equity | Money Market Fund
1Y returns
6.13%Min. Invest
₹100
AUM
₹18,185.08 Cr
Baroda BNP Paribas Money Market Fund - Direct (G)
Equity | Money Market Fund
1Y returns
6.11%Min. Invest
₹5,000
AUM
₹4,265.77 Cr
DSP Savings Fund - Direct (G)
Equity | Money Market Fund
1Y returns
6.11%Min. Invest
₹100
AUM
₹9,460.59 Cr
Kotak Money Market Fund - Direct (G)
Equity | Money Market Fund
1Y returns
6.08%Min. Invest
₹100
AUM
₹31,606.37 Cr
Bajaj Finserv Money Market Fund - Direct (G)
Equity | Money Market Fund
1Y returns
6.07%Min. Invest
₹1,000
AUM
₹4,547.20 Cr
HDFC Money Market Fund - Direct (G)
Equity | Money Market Fund
1Y returns
6.07%Min. Invest
₹100
AUM
₹28,704.74 Cr
Franklin India Money Market Fund - Direct (G)
Equity | Money Market Fund
1Y returns
6.07%Min. Invest
₹10,000
AUM
₹4,442.84 Cr
Edelweiss Money Market Fund - Direct (G)
Equity | Money Market Fund
1Y returns
6.06%Min. Invest
₹100
AUM
₹2,050.45 Cr
Nippon India Money Market Fund - Direct (G)
Equity | Money Market Fund
1Y returns
6.06%Min. Invest
₹500
AUM
₹21,262.69 Cr
Aditya Birla SL Money Manager Fund - Dir (G)
Equity | Money Market Fund
1Y returns
6.05%Min. Invest
₹1,000
AUM
₹27,550.17 Cr
UTI-Money Market Fund - Direct (G)
Equity | Money Market Fund
1Y returns
6.05%Min. Invest
₹500
AUM
₹18,610.69 Cr
ICICI Pru Money Market Fund - Direct (G)
Equity | Money Market Fund
1Y returns
6.03%Min. Invest
₹500
AUM
₹30,335 Cr
HSBC Money Market Fund - Direct (G)
Equity | Money Market Fund
1Y returns
6.00%Min. Invest
₹5,000
AUM
₹5,803.77 Cr
TRUSTMF Money Market Fund - Direct (G)
Equity | Money Market Fund
1Y returns
6.00%Min. Invest
₹1,000
AUM
₹140.10 Cr
Sundaram Money Market Fund - Direct (G)
Equity | Money Market Fund
1Y returns
6.00%Min. Invest
₹1,000
AUM
₹1,734.41 Cr
Mirae Asset Money Market Fund - Direct (G)
Equity | Money Market Fund
1Y returns
6.00%Min. Invest
₹5,000
AUM
₹4,397.56 Cr
Invesco India Money Market Fund - Direct (G)
Equity | Money Market Fund
1Y returns
5.98%Min. Invest
₹1,000
AUM
₹5,764.45 Cr
SBI Savings Fund - Direct (G)
Equity | Money Market Fund
1Y returns
5.94%Min. Invest
₹500
AUM
₹34,348.86 Cr
PGIM India Money Market Fund - Direct (G)
Equity | Money Market Fund
1Y returns
5.93%Min. Invest
₹5,000
AUM
₹142.21 Cr
Shriram Money Market Fund - Direct (G)
Equity | Money Market Fund
1Y returns
%Min. Invest
₹1,000
AUM
₹182.83 Cr
Groww Money Market Fund - Direct (G)
Equity | Money Market Fund
1Y returns
%Min. Invest
₹500
AUM
₹43.19 Cr
JioBlackRock Money Market Fund - Direct (G)
Equity | Money Market Fund
1Y returns
%Min. Invest
₹500
AUM
₹2,523.01 Cr
What Are Money Market Mutual Funds?
These mutual funds are a type of mutual fund that invests in high-quality and short term debt instruments. It also invests in cash and cash equivalents. These funds aim to provide high liquidity with a very low level of risk, making them suitable for investors who are looking for a safe place to park their money temporarily.Characteristics of Money Market Funds
These funds invest in high-quality debt securities, providing a low-risk investment option. Here are some key characteristics of money market funds:- High Liquidity: The prime money market funds offer easy access to your money, allowing you to withdraw funds quickly with minimal risk of loss.
- Low Risk: These funds invest in high-quality, short-term debt securities, which are less likely to default, ensuring the safety of your principal.
- Stable Returns: They provide returns that are generally higher than those of traditional savings accounts. As a result, they can offer a better yield on your short term investments.
- Short Term Investments: These funds invest in instruments with maturities of less than one year, helping them maintain liquidity and reduce interest rate risk.
- Diversification: Through spreading investments across various short-term instruments, these funds cut risk and provide more stable returns.
- Capital Preservation: These funds focus on preserving the capital invested, making them an ideal choice for conservative investors who want to avoid significant losses.
How does Money Market Funds Work?
The best money market funds work by pooling money from many investors to buy a diversified portfolio of short-term, high-quality debt instruments. The fund manager selects these instruments to ensure safety and liquidity while aiming to provide a stable net asset value (NAV). Returns are generated through interest income from these investments.Why Invest in Money Market Funds?
Money market mutual funds offer several benefits. These funds provide safety by investing in high-quality, short-term debt instruments, ensuring low risk. They offer high liquidity, making it easy to access funds for emergency needs or short-term goals. They typically provide higher returns than traditional savings accounts. They can also reduce risk by spreading investments across various instruments. This makes them ideal for conservative investors seeking capital preservation while still earning a modest return.Overall, a combination of safety, liquidity, and potential for higher returns makes these funds a versatile and attractive option for many investors.
Who Should Invest In Money Market Funds?
These funds are a great option for investors seeking a low-risk, highly liquid investment. Here are the types of investors who can invest in money market mutual funds:- Risk-Averse Investors: Those looking for a safe investment option.
- Short-Term Goals: Ideal for investors with short term financial goals.
- Emergency Funds: Suitable for parking emergency funds due to high liquidity.
- Temporary Parking: Investors looking to park their money temporarily before making long term investments.
Considerations To Note While Investing In Money Market Mutual Fund Schemes
Investing in these mutual funds requires careful consideration to ensure they align with your financial needs and risk tolerance. Here are some important factors to keep in mind:- Expense Ratio: The expense ratio represents the annual fee that all mutual funds charge their shareholders. It covers the fund’s operating expenses, including management fees, administrative costs, along with other operational expenses.
- Fund Manager’s Track Record: The performance of a money market mutual fund largely depends on the expertise and experience of its fund manager. A fund manager with a strong track record of managing money market instruments can make better investment decisions, leading to more stable and higher returns.
- Credit Quality: These funds invest in short term debt instruments issued by corporations, government agencies, and financial institutions. The credit quality of these instruments is crucial as it indicates the likelihood of the issuer defaulting on their payments.
- Liquidity Needs: One of the primary benefits of these funds is their high liquidity. However, it’s essential to assess your own liquidity needs before investing. If you need quick access to your funds, ensure that the money market fund you choose allows for easy and penalty-free withdrawals.
- Interest Rate Environment: The returns on these funds are influenced by the prevailing interest rate environment. When these rates rise, the yields on municipal money market funds increase, leading to higher investor returns.
- Regulatory Compliance: Ensure that the government money market funds follow the regulations set by the Securities and Exchange Board of India (SEBI). It should also comply with the relevant regulatory authority in the country.
Risk of Money Market Mutual Fund Schemes
These funds carry very low risk compared to other mutual funds. However, they are not entirely risk-free. The primary risks include interest rate risk, where changes in interest rates can affect the fund’s returns. Also, there is credit risk, where the issuers of the debt instruments may default.Money Market Mutual Funds Taxation Rules
Income from these funds is typically taxed as per the investor’s income tax slab. Short term capital gains are added to the investor’s income and taxed accordingly. Long term capital gains are gains over 3 years holding period. These are taxed at 20% with indexation benefits. These funds are subject to exemption from federal income tax.FAQ’s
How can I get the most out of the best money market mutual funds?
To maximize returns, choose funds with low expense ratios. Try to invest in money market mutual funds that are managed by experienced fund managers, and stay informed about the interest rate environment.
Where do these funds make their investments?
These funds invest in high-quality, short-term debt instruments such as treasury bills and certificates of deposit. It can also be commercial paper and repurchase agreements.
What kinds of profits are possible in the money market?
Returns from these funds are generally higher than those from savings accounts but lower than those from long term investments. They typically range between 2% to 4%, depending on market conditions.
What is the recommended duration for investing in these funds?
These funds are ideal for short term investments, typically ranging from a few months to a year. They are not suitable for long term investment goals.
Are money market funds and money market accounts the same thing?
No, a money market account is a type of savings account offered by banks. A money market fund is a type of mutual fund that invests in short-term debt instruments. Money market accounts are insured by the Federal Deposit Insurance Corporation, whereas these funds are not.
