Money Market Mutual Fund

Mutual Fund

A money market mutual fund helps to manage short run cash needs. This is an open-ended scheme which invests your money on ultra safe and high quality liquid instruments like treasury bills, commercial papers, repurchase agreements, certificate of deposits with having less than one year of maturity period. This is a short time fund so you can keep your money in this fund for very short time like 1-3 months. That’s why this fund called emergency fund.

Types of Money Market Funds

  • Treasury Bills- A treasury bill is issued by govt. Safest instrument as this thing is guaranteed by govt. T-bills are issued for a term of one year or less. The rate of return is risk free but it is also low compared to all other instruments. 
  • Commercial Papers– Commercial Papers are the money market unsecured instrument issued in the form of promissory code which was introduced in India 1990.  To enabling highly rated corporate borrowers to diversify their sources of short-term borrowings and to provide an additional instrument to investors.
  • Repurchase Agreements – It is an agreement under which RBI lends money to the commercial banks. A repurchase agreement is a form of short term borrowing for dealer in government securities. Dealers sell those govt. securities on overnight basis.
  • Certificate of Deposits– CD is issued by the commercial banks and financial institutions  while commercial papers are issued by corporate, primary dealers (PDs) and the All-India Financial Institutions (FIs). The only difference between FD and CD is that you cannot withdraw the CD before the expiry of the term.

Key features of Money Market Mutual Fund

  • Major institutions are involved like RBI, Commercial Banks, LIC etc.
  • Short term market.
  • There is no fixed geographical location.
  • Common Instruments of money market are Call money, Treasury Bill, CP, CD, Commercial bill, etc.
  • It is a wholesale market, as the transaction volume is large.
  • Trading takes place over the telephone, after which written confirmation is done by way of e-mails.
  • There is an impersonal relationship between the participants in the money market, and so, pure competition exists.

Now we are giving a list of money market mutual funds

Mutual Fund Scheme

AUM
 
(Rs. cr.)
 
Sep 18

1mth

3mth

6mth

1yr

2yr

3yr

5yr

Reliance Money Market Fund (G)

604.04

0.7

1.9

3.9

7.4

7.0

7.3

7.9

UTI Money Market Fund -IP (G)

912.04

0.7

2.0

3.8

7.4

7.0

7.3

7.9

ABSL Money Manager Fund (G)

2,080.34

0.7

1.9

3.9

7.4

7.1

7.4

8.0

ABSL Money Manager Fund – RP (G)

11.69

0.7

2.0

3.9

7.4

7.1

7.4

8.0

Invesco India Money Market (G)

303.30

0.6

1.9

3.7

7.3

7.0

7.3

8.1

Kotak Money Market Scheme (G)

2,969.43

0.6

1.9

3.7

7.2

7.0

7.3

7.9

HDFC Money Market Fund – D (G)

1,227.27

0.7

1.9

3.7

7.2

7.0

7.3

7.9

ICICI Pru Money Market Fund (G)

1,297.75

0.7

1.9

3.7

7.2

7.0

7.3

7.9

HDFC Money Market Fund (G)

2,748.99

0.6

1.8

3.6

7.0

6.8

7.0

7.8

ICICI Pru Money Market Fund – RP (G)

0.15

0.6

1.8

3.5

6.9

6.6

6.9

7.3

L&T Money Market Fund (G)

667.92

0.6

1.7

3.4

6.9

7.3

7.9

8.2

UTI Money Market Fund (G)

17.79

0.6

1.8

3.6

6.8

6.4

6.7

7.3

Franklin India Savings Fund – RP (G)

219.42

0.7

1.8

3.6

6.8

7.1

7.4

8.0

DSP Savings Fund – Regular (G)

102.97

0.7

1.8

3.5

6.7

6.2

6.4

7.0

JM Money Market Fund (G)

24.66

0.6

1.8

3.4

6.6

6.6

7.0

7.7

Invesco India Money Market – RP (G)

10.80

0.6

1.7

3.4

6.5

6.2

6.6

7.2

SBI Savings Fund – Regular (G)

3,458.05

0.6

1.8

3.3

6.4

6.6

7.1

7.8

Tata Money Market Fund (G) 

681.61

0.7

0.2

2.1

5.6

6.1

6.7

7.5

IDFC Money Manager Fund (G) 

1,022.05

0.6

1.5

2.9

5.4

6.0

6.7

7.5

CATEGORY AVERAGE

 

0.6

1.7

3.5

6.8

6.7

7.1

7.7

Note : Returns have been calculated based on NAV’s as on Oct 22, 2018 & Index values as on Oct 22, 2018

 As per AMFI guidelines, effective from quarter ending December 31, 2010, fund houses have stopped publishing the Assets Under Management (AUM) on a monthly basis. This data is published every quarter.

*Mutual Funds are subject to market risk.

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1 comment
  1. Asgar Husain
    Asgar Husain
    March 5, 2020 at 9:08 AM

    Good post

    Reply