Top Performing Money Market Funds in 10 Years

The below table shows a list Of the Top Performing Money Market Funds in 10 Years Based on AUM, NAV and minimum SIP.

Introduction to Top Performing Money Market Funds in 10 Years

SBI Savings Fund

SBI Savings Fund Direct-Growth is a Money Market mutual fund scheme from SBI Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

SBI Savings Fund falls under the Money Market Fund category with an AUM of ₹29,357.76 crores, a 5-year CAGR of 6.02%, an exit load of 0% and an expense ratio of 0.25%. The SEBI risk category is Moderate. Its asset allocation includes 60.54% in Certificate of Deposit, 25.47% in Commercial Paper, 11.20% in Government Securities, 4.35% in Treasury Bills, 0.25% in Cash & Equivalents and -1.81% in Others.

Aditya Birla Sun Life Money Manager Fund

Aditya Birla Sun Life Money Manager Fund Direct-Growth is a Money Market mutual fund scheme from Aditya Birla Sun Life Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

Aditya Birla SL Money Manager Fund falls under the Money Market Fund category with an AUM of ₹26,499.23 crores, a 5-year CAGR of 6.16%, an exit load of 0% and an expense ratio of 0.22%. The SEBI risk category is Moderate. Its asset allocation includes 56.33% in Certificate of Deposit, 27.22% in Commercial Paper, 5.78% in Treasury Bills, 5.35% in Government Securities, 5.08% in Cash & Equivalents and 0.23% in Others.

HDFC Money Market Fund

HDFC Money Market Fund Direct Plan-Growth is a Money Market mutual fund scheme from HDFC Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

HDFC Money Market Fund falls under the Money Market Fund category with an AUM of ₹23,661.02 crores, a 5-year CAGR of 6.11%, an exit load of 0% and an expense ratio of 0.23%. The SEBI risk category is Moderately Low. Its asset allocation includes 54.75% in Certificate of Deposit, 31.03% in Commercial Paper, 9.22% in Treasury Bills, 4.87% in Government Securities, 0.21% in Cash & Equivalents and -0.09% in Others.

Tata Money Market Fund

The Tata Money Market Fund Direct Growth has been operational since January 1, 2013, providing an average annual return of 7.87% since its inception.

Tata Money Market Fund falls under the Money Market Fund category with an AUM of ₹21,693.41 crores, a 5-year CAGR of 6.19%, an exit load of 0% and an expense ratio of 0.15%. The SEBI risk category is Moderately Low. Its asset allocation includes 53.55% in Certificate of Deposit, 30.86% in Commercial Paper, 12.57% in Treasury Bills, 1.95% in Government Securities, 0.87% in Cash & Equivalents and 0.20% in Others.

ICICI Prudential Money Market Fund

ICICI Prudential Money Market Direct-Growth is a Money Market mutual fund scheme from ICICI Prudential Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

ICICI Pru Money Market Fund falls under the Money Market Fund category with an AUM of ₹21,652.61 crores, a 5-year CAGR of 6.00%, an exit load of 0% and an expense ratio of 0.21%. The SEBI risk category is Moderate. Its asset allocation includes 51.00% in Certificate of Deposit, 31.13% in Commercial Paper, 11.36% in Treasury Bills, 3.27% in Cash & Equivalents, 3.06% in Government Securities and 0.19% in Others.

Nippon India Money Market Fund

The Nippon India Money Market Fund Direct Growth has been operational since December 31, 2012, providing an average annual return of 7.74% since its inception.

Nippon India Money Market Fund falls under the Money Market Fund category with an AUM of ₹16,109.66 crores, a 5-year CAGR of 6.04%, an exit load of 0% and an expense ratio of 0.25%. The SEBI risk category is Moderately Low. Its asset allocation includes 58.53% in Certificate of Deposit, 28.54% in Commercial Paper, 7.30% in Treasury Bills, 6.19% in Government Securities, 0.24% in Cash & Equivalents and -0.80% in Others.

UTI Money Market Fund

UTI Money Market Fund Direct-Growth is a Money Market mutual fund scheme from UTI Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

UTI Money Market Fund falls under the Money Market Fund category with an AUM of ₹14,308.33 crores, a 5-year CAGR of 5.99%, an exit load of 0% and an expense ratio of 0.19%. The SEBI risk category is Moderate. Its asset allocation includes 56.06% in Certificate of Deposit, 29.63% in Commercial Paper, 4.96% in Treasury Bills, 4.88% in Cash & Equivalents, 4.22% in Government Securities and 0.24% in Others.

Axis Money Market Fund

The Axis Money Market Fund Direct Growth has been operational since August 6, 2019, providing an average annual return of 7.75% since its inception.

Axis Money Market Fund falls under the Money Market Fund category with an AUM of ₹12,947.57 crores, a 5-year CAGR of 6.11%, an exit load of 0% and an expense ratio of 0.13%. The SEBI risk category is Moderately Low. Its asset allocation includes 57.72% in Certificate of Deposit, 25.43% in Commercial Paper, 7.56% in Treasury Bills, 5.99% in Government Securities, 3.13% in Cash & Equivalents and 0.17% in Others.

HSBC Money Market Fund

The HSBC Money Market Fund Direct Growth has been operational since January 1, 2013, providing an average annual return of 7.58% since its inception.

HSBC Money Market Fund falls under the Money Market Fund category with an AUM of ₹1,857.06 crores, a 5-year CAGR of 6.10%, an exit load of 0% and an expense ratio of 0.20%. The SEBI risk category is Moderately Low. Its asset allocation includes 51.66% in Certificate of Deposit, 25.79% in Commercial Paper, 10.01% in Treasury Bills, 7.84% in Cash & Equivalents, 4.49% in Government Securities and 0.21% in Others.

Franklin India Money Market Fund

Franklin India Money Market Fund Direct-Growth is a Money Market mutual fund scheme from Franklin Templeton Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

Franklin India Money Market Fund falls under the Money Market Fund category with an AUM of ₹1,467.42 crores, a 5-year CAGR of 5.91%, an exit load of 0% and an expense ratio of 0.14%. The SEBI risk category is Moderately Low. Its asset allocation includes 51.80% in Certificate of Deposit, 33.16% in Commercial Paper, 14.90% in Treasury Bills, 0.20% in Cash & Equivalents and -0.07% in Others.

What Are Money Market Funds?

Money Market Funds are a type of mutual fund that invests in highly liquid, short-term debt securities with maturities typically less than 13 months. These funds aim to provide investors with high liquidity, capital preservation and returns that are slightly higher than traditional savings accounts.

Money Market Funds primarily invest in instruments such as treasury bills, commercial paper, certificates of deposit and other short-term debt securities. They are designed to maintain a stable Net Asset Value (NAV), usually at ₹1 per unit.

These funds are suitable for investors looking to park their surplus cash for very short periods, typically ranging from a few days to a few months. They offer a good alternative to savings accounts for managing short-term liquidity needs with potentially higher returns.

Features Of Top Performing Money Market Funds in 10 Years

The main features of top-performing Money Market Funds in 10 years include high liquidity, low risk, stable returns and professional management. These funds offer a safe haven for short-term cash parking while aiming to provide returns slightly higher than savings accounts.

• High liquidity: Money Market Funds invest in securities with very short maturities, allowing investors to easily redeem their investments on short notice without any significant exit load.

• Low risk: Due to their investment in high-quality, short-term debt instruments, these funds carry minimal interest rate and credit risk, making them one of the safest investment options.

• Stable returns: While returns are generally modest, they tend to be stable and slightly higher than savings account interest rates, providing a predictable income stream.

• Professional management: Experienced fund managers handle the daily reinvestment of maturing securities, ensuring optimal returns within the fund’s investment mandate.

Best Performing Money Market Funds in 10 Years

The table below shows the Best Performing Money Market Funds in 10 Years Based on the lowest to highest expense ratio.

Top Performing Money Market Funds in 10 Years In India

The table below shows the top-performing money Market Funds in 10 Years In India Based on the Highest 3Y CAGR.

Top Performing Money Market Funds in 10 Years List

The table below shows the Top Performing Money Market Funds in the 10 Years List based on exit load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.

Factors To Consider When Investing In Top Performing Money Market Funds in 10 Years

The main factors to consider when investing in top-performing Money Market Funds in 10 years include fund size, expense ratio, portfolio quality, consistency of returns and your investment horizon. These factors can impact the fund’s performance and suitability for your financial goals.

• Fund size: Larger funds may have better negotiating power for short-term rates, potentially leading to slightly higher returns. However, very large funds might face challenges in deploying all assets efficiently.

• Expense ratio: Compare expense ratios across different money market funds. Lower expenses can contribute to better overall returns, especially given the typically low returns of this category.

• Portfolio quality: Examine the fund’s portfolio composition, focusing on the credit quality of its holdings to ensure the fund maintains a low-risk profile.

• Consistency of returns: Look for funds that have consistently provided returns slightly above the prevailing short-term rates over the past ten years.

• Investment horizon: Ensure that your investment timeframe aligns with the short-term nature of money market funds. These are best suited for very short-term cash parking needs.

How To Invest In Top-Performing Money Market Funds in 10 Years?

To invest in top-performing Money Market Funds in 10 years, start by researching and comparing different funds based on their performance, expense ratios and portfolio quality. Once you’ve selected a fund that aligns with your short-term liquidity needs, you can invest through Alice Blue.

Alice Blue is a user-friendly online investment platform that provides tools and resources to help you make informed investment decisions. You can choose to invest a lump sum amount or opt for a Systematic Investment Plan (SIP), although lump sum investments are more common for money market funds.

Remember that Money Market Funds are designed for very short-term investments, typically ranging from a few days to a few months. They are best used for parking surplus cash or managing short-term liquidity needs rather than as long-term investment vehicles.

Advantages Of Investing In Top Performing Money Market Funds in 10 Years

The main advantages of investing in top-performing Money Market Funds in 10 years include high liquidity, low risk, potential for better returns than savings accounts and efficient cash management. These funds offer a safe and flexible option for short-term cash parking.

• High liquidity: Money Market Funds allow investors to redeem their investments on very short notice, usually within one business day, without any significant exit load.

• Low risk: These funds carry minimal interest rate and credit risk due to their investment in high-quality, short-term debt instruments, making them one of the safest investment options.

• Better returns than savings accounts: While returns are modest, they are generally slightly higher than savings account interest rates, providing a more efficient way to manage short-term cash.

• Efficient cash management: Money Market Funds offer a professional way to manage surplus cash, potentially optimizing returns on idle money for very short periods.

Risks Of Investing In Top Performing Money Market Funds in 10 Years

The main risks of investing in top-performing Money Market Funds in 10 years include interest rate risk, credit risk, reinvestment risk, and the impact of expenses on returns. While generally very low-risk, these funds are not entirely risk-free.

• Interest rate risk: Although minimal due to short maturities, sudden changes in interest rates can still affect returns to some extent.

• Credit risk: While money market funds invest in high-quality instruments, there’s still a minimal risk of default or credit rating downgrades.

• Reinvestment risk: As securities mature frequently, there’s a risk that proceeds may be reinvested at lower rates if short-term rates decline.

• Impact of expenses: Given the low returns of Money Market Funds, even small differences in expense ratios can significantly impact net returns to investors.

Top Performing Money Market Funds in 10 Years FAQs  

Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.