Money Market Funds
Last Updated on 12 May 2026
3 Year Average Returns
7.00%
Funds on Anand Rathi
103
Money Market Funds to Invest in 2026
| Fund Name | |||
|---|---|---|---|
| Sundaram Money Market Fund - Regular (IDCW-M) (RI) | 55.68% | 21.66% | 14.57% |
| UTI-Money Market Fund (IDCW-M) | 9.56% | 8.38% | 7.02% |
| ICICI Pru Money Market Fund - Regular (IDCW-W) | 6.35% | 7.56% | 6.83% |
| Aditya Birla SL Money Manager Fund-Retail(IDCW-D) | 6.69% | 7.61% | 6.57% |
| DSP Savings Fund (IDCW-D) | 6.15% | 7.98% | 6.53% |
| Aditya Birla SL Money Manager Fund-Retail(IDCW-W) | 6.49% | 7.66% | 6.42% |
| UTI-Money Market Fund - Regular (IDCW-H) | 6.39% | 7.32% | 6.39% |
| UTI-Money Market Fund (IDCW-A) | 6.39% | 7.32% | 6.39% |
| UTI-Money Market Fund - Regular (G) | 6.39% | 7.32% | 6.39% |
| Nippon India Money Market Fund (G) | 6.34% | 7.28% | 6.38% |
| Nippon India Money Market Fund (IDCW-M) | 6.32% | 7.27% | 6.38% |
| Aditya Birla SL Money Manager Fund-Retail(G) | 6.35% | 7.29% | 6.37% |
| Aditya Birla SL Money Manager Fund (G) | 6.35% | 7.29% | 6.37% |
| Aditya Birla SL Money Manager Fund (IDCW-D) | 6.28% | 7.27% | 6.36% |
| Tata Money Market Fund - Regular (IDCW-D) | 6.34% | 7.34% | 6.36% |
Calculate Your Mutual Fund Returns
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The value of your investment after 5 Years will be
₹4,12,432
Invested Amount
₹3,00,000
Est. Returns
₹1,12,432
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What is Money Market Fund?
Money Market Fund is a form of debt mutual fund that invests solely in short-term instruments with a maturity of up to 1 year. It includes investments in short-term debt securities, liquid instruments, cash, and cash equivalents.
The money market fund shall invest primarily in money market securities of such kind, and the rest can be in other liquid securities. However, their maturity shall remain within 12 months, which eventually makes them highly liquid.
How Does Money Market Fund Work?
A money market fund invests primarily in short-term debt instruments like treasury bills, commercial papers, certificates of deposit, and call money. Think of a money market fund as a place where your money is parked for a short time.
The fund uses the pooled money to invest in very short-term instruments. These instruments have maturities of up to 1 year, which helps keep risk and volatility low. The fund manager regularly rolls over these instruments to maintain liquidity and stability. Returns are generated through interest income, not price appreciation.
Benefits Of Money Market Fund
Unlike other debt funds, money market mutual funds have their own set of advantages to offer, like;
Low Risk
Money market debt funds invest in short-term, high-quality debt instruments, making them relatively stable.
High Liquidity
You can withdraw your money easily, usually within a few days, which makes it highly liquid to access.
Better Returns Than Savings Accounts
They may offer slightly higher returns compared to a regular savings account, though returns are not guaranteed.
Short Investment Horizon
Due to the time horizon, these funds are suitable for those who wish to park surplus funds for a short period.
Lower Interest Rate Sensitivity
Since investments are short-term, the impact of interest rate changes is limited, unlike other debt funds.
Who Should Invest In Money Market Funds?
Money market funds may suit those:
- Investors looking to park surplus money for the short term.
- Conservative investors seeking capital stability.
- Businesses or individuals needing quick access to funds.
How To Invest In Money Market Fund With Anand Rathi?
Planning to invest in a money market mutual fund online? With Anand Rathi, you can invest through a secure, online, and easy-to-use platform. Here's how to get started:
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Visit the Anand Rathi website or download the AR Invest app – sign up and log in securely.
Explore Money Market Funds
Compare money market funds based on portfolio quality, maturity profile, ratings, and risk level.
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Points To Consider Before Investing In Money Market Fund
Before investing in a Money market mutual fund, keep these points in mind:
Investment Horizon
While money market funds park money for less than 12 months, they are well-suited for those investors with short-term goals (a few days to 1 year). Check whether they match your investment horizon or not.
Credit Quality
With investment in debt securities, checking the quality of underlying instruments is crucial to understand the credit risk of the folio.
Expense Ratio
Money market funds are actively managed funds, and hence, expense ratios can highly influence the net return.
Liquidity & Exit Load
Although these funds offer high liquidity, it is wise to check for any exit load (if applicable in any fund).
Returns Expectation
Here, the returns are market-linked and not fixed like FD or savings interest. Check before investing or expecting from this fund.
Taxation Rules On Money Market Fund
Like other debt funds, Money market mutual funds are taxed based on their date of purchase. For instance:
Bought Before April 1, 2023, but sold after July 23, 2024: LTCG (12.5% - without indexation), STCG (slab rate).
Bought On or after April 1, 2023: Irrespective of holding period - Taxed at the individual's slab rate.
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The information provided on this page is for informational purposes only and should not be construed as investment advice, recommendation, or solicitation to buy or sell any securities or financial pr...
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