What are the top performing Money Market funds?

Based on 1-year returns, the top performing Money Market funds are Union Money Market Fund - Direct Plan with 6.19% return, LIC MF Money Market Fund - Direct Plan with 6.13% return, and Tata Money Market Fund - Direct Plan with 6.12% return. The category average 1-year return is 6.00%.

Which Money Market funds have given the best returns over 3 years?

Over a 3-year period, the best performing Money Market funds are Union Money Market Fund - Direct Plan with a 7.40% CAGR, LIC MF Money Market Fund - Direct Plan with 7.31% CAGR, and Tata Money Market Fund - Direct Plan with 7.28% CAGR. The category average 3-year return stands at 7.16% CAGR.

What are the largest Money Market mutual funds by assets?

The largest Money Market funds by Assets Under Management (AUM) are Tata Money Market Fund - Direct Plan with ₹ 37,476.50 crore, SBI Savings Fund - Direct Plan with ₹ 36,291.40 crore, and Kotak Money Market Fund - Direct Plan with ₹ 33,699.90 crore. Together, there are 27 Money Market funds available in India.

What is the minimum amount to invest in Money Market funds?

You can start investing in Money Market funds with a minimum SIP of ₹99 per month or a minimum lumpsum of ₹100. The minimum investment varies across fund houses — some funds allow even lower entry points.

How are Money Market fund returns taxed?

All gains from Money Market funds — regardless of holding period — are added to your income and taxed at your applicable income tax slab rate.

Which Money Market funds have the lowest expense ratio?

Among Money Market funds, Mirae Asset Money Market Fund - Direct Plan has the lowest expense ratio at 0.09% (Direct Plan), followed by Bandhan Money Market Fund - Direct Plan at 0.10%. Lower expense ratios directly improve your net returns over the long term.

How many Money Market mutual funds are available in India?

There are currently 27 Money Market mutual funds available in India across different fund houses. You can compare all 27 funds on Sharpely based on returns, risk, AUM, and expense ratio to find the one that suits your investment goals.

mutual funds category

Money Market

Money Market Funds

Money market debt funds invest in Money Market instruments with a maturity of up to 1 year.

Total Schemes

No. of schemes

Total AUM

₹ 3.30Lakh Cr

As on latest

Category Return (5Y)

6.36 %

CAGR

Benchmark Data

This category currently has no benchmark assigned.

Category Returns (%)

Period	1M	6M	1Y	3Y CAGR	5Y CAGR	10Y CAGR	YTD
Money Market	0.28 %	2.67 %	6.00 %	7.16 %	6.36 %	6.65 %	2.18 %
Benchmark Not Available No benchmark assigned	-	-	-	-	-	-	-

Top Money Market Funds (by AUM)

Fund Name	AUM (₹ Cr)	1Y Return	3Y CAGR	5Y CAGR	Expense Ratio
Tata Money Market Fund - Direct PlanNAV: ₹5,085.43	37,476.50 Cr	6.12%	7.40%	6.58%	0.18%
SBI Savings Fund - Direct PlanNAV: ₹46.90	36,291.40 Cr	5.88%	7.18%	6.38%	0.26%
Kotak Money Market Fund - Direct PlanNAV: ₹4,786.74	33,699.90 Cr	5.99%	7.24%	6.43%	0.16%
ICICI Prudential Money Market Fund - Direct PlanNAV: ₹405.46	32,702.10 Cr	5.94%	7.23%	6.41%	0.21%
Aditya Birla Sun Life Money Manager Fund - Direct PlanNAV: ₹395.63	30,074.10 Cr	5.96%	7.26%	6.47%	0.22%
HDFC Money Market Fund - Direct PlanNAV: ₹6,156.75	29,823.90 Cr	6.00%	7.26%	6.44%	0.22%
Nippon India Money Market Fund - Direct PlanNAV: ₹4,439.49	21,421.00 Cr	5.98%	7.28%	6.49%	0.22%
Axis Money Market Fund - Direct PlanNAV: ₹1,525.95	20,120.60 Cr	6.08%	7.31%	6.49%	0.17%
UTI Money Market Fund Institutional - Direct PlanNAV: ₹3,295.28	19,328.10 Cr	5.97%	7.26%	6.45%	0.15%
Bandhan Money Market Fund - Direct PlanNAV: ₹46.13	15,908.00 Cr	6.10%	7.27%	6.38%	0.10%
DSP Savings Fund - Direct PlanNAV: ₹57.25	9,809.90 Cr	5.99%	7.07%	6.18%	0.19%
HSBC Money Market Fund - Direct PlanNAV: ₹29.21	6,638.52 Cr	5.91%	7.15%	6.24%	0.14%
Invesco India Money Market Fund - Direct PlanNAV: ₹3,324.45	5,938.38 Cr	5.89%	7.09%	6.19%	0.16%
LIC MF Money Market Fund - Direct PlanNAV: ₹1,272.13	5,439.20 Cr	6.13%	6.62%	-	0.17%
Franklin India Money Market Fund - Direct PlanNAV: ₹54.75	4,309.45 Cr	5.99%	7.26%	6.36%	0.16%

About Money Market Funds

What is it?

Money market debt funds invest in Money Market instruments with a maturity of up to 1 year.

Objective

A money market fund's primary objective is to generate income while maintaining sufficient liquidity and low-interest rate risk.

Suitability and opinion

These funds are a good option for risk-averse investors looking for a decent return in the short term. These funds aim to generate slightly better returns compared to bank FDs of similar tenure. The risk is very low in this category. But we believe that investors can avoid investing in this fund and invest in liquid funds if they want to park their money for up to 1 year. We feel this because debt funds have different categories even in the shorter time duration and this differentiation does not add any value to retail investors. These funds can help in short-term capital preservation but can't be used for long-term wealth creation.

Money Market vs Other Categories

5Y CAGR Return Comparison

6.56%

6.51%

6.36%

6.35%

6.21%

Short Duration

Low Duration

Money Market

Ultra Short Duration

Fixed Maturity

Key Insights

Money Market delivered 6.36% CAGR over the last 5 years.

It ranks #6 out of 18 categories based on 5Y performance.

Above the category average return of 6.35%.

5 categories outperform it, while 12 categories have lower returns.

Top performer: Credit Risk (9.97%).

Lowest performer: Long Duration (5.32%).

Let's have a closer look

Now let us jump and check about these top 15 mutual fund schemes.

Tata Money Market Fund - Direct Plan

Fund Performance: Tata Money Market Fund - Direct Plan has given 7.40% annualized returns in the past three years and 6.58% in the last 5 years. The Tata Money Market Fund - Direct Plan comes under the Debt category of Tata Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Tata Money Market Fund - Direct Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 37,476.50Cr

1Y Returns

6.12%

Expense Ratio

0.18%

SBI Savings Fund - Direct Plan

Fund Performance: SBI Savings Fund - Direct Plan has given 7.18% annualized returns in the past three years and 6.38% in the last 5 years. The SBI Savings Fund - Direct Plan comes under the Debt category of SBI Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in SBI Savings Fund - Direct Plan via lump sum is ₹ 500.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 500.00

AUM

₹ 36,291.40Cr

1Y Returns

5.88%

Expense Ratio

0.26%

Kotak Money Market Fund - Direct Plan

Fund Performance: Kotak Money Market Fund - Direct Plan has given 7.24% annualized returns in the past three years and 6.43% in the last 5 years. The Kotak Money Market Fund - Direct Plan comes under the Debt category of Kotak Mahindra Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Kotak Money Market Fund - Direct Plan via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 33,699.90Cr

1Y Returns

5.99%

Expense Ratio

0.16%

ICICI Prudential Money Market Fund - Direct Plan

Fund Performance: ICICI Prudential Money Market Fund - Direct Plan has given 7.23% annualized returns in the past three years and 6.41% in the last 5 years. The ICICI Prudential Money Market Fund - Direct Plan comes under the Debt category of ICICI Prudential Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Money Market Fund - Direct Plan via lump sum is ₹ 500.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 500.00

AUM

₹ 32,702.10Cr

1Y Returns

5.94%

Expense Ratio

0.21%

Aditya Birla Sun Life Money Manager Fund - Direct Plan

Fund Performance: Aditya Birla Sun Life Money Manager Fund - Direct Plan has given 7.26% annualized returns in the past three years and 6.47% in the last 5 years. The Aditya Birla Sun Life Money Manager Fund - Direct Plan comes under the Debt category of Aditya Birla Sun Life Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Aditya Birla Sun Life Money Manager Fund - Direct Plan via lump sum is ₹ 1,000.00 and via SIP is ₹ 1,000.00.

Min Investment Amt

₹ 1,000.00

AUM

₹ 30,074.10Cr

1Y Returns

5.96%

Expense Ratio

0.22%

HDFC Money Market Fund - Direct Plan

Fund Performance: HDFC Money Market Fund - Direct Plan has given 7.26% annualized returns in the past three years and 6.44% in the last 5 years. The HDFC Money Market Fund - Direct Plan comes under the Debt category of HDFC Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in HDFC Money Market Fund - Direct Plan via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 29,823.90Cr

1Y Returns

6.00%

Expense Ratio

0.22%

Nippon India Money Market Fund - Direct Plan

Fund Performance: Nippon India Money Market Fund - Direct Plan has given 7.28% annualized returns in the past three years and 6.49% in the last 5 years. The Nippon India Money Market Fund - Direct Plan comes under the Debt category of Nippon India Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Nippon India Money Market Fund - Direct Plan via lump sum is ₹ 500.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 500.00

AUM

₹ 21,421.00Cr

1Y Returns

5.98%

Expense Ratio

0.22%

Axis Money Market Fund - Direct Plan

Fund Performance: Axis Money Market Fund - Direct Plan has given 7.31% annualized returns in the past three years and 6.49% in the last 5 years. The Axis Money Market Fund - Direct Plan comes under the Debt category of Axis Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Axis Money Market Fund - Direct Plan via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 20,120.60Cr

1Y Returns

6.08%

Expense Ratio

0.17%

UTI Money Market Fund Institutional - Direct Plan

Fund Performance: UTI Money Market Fund Institutional - Direct Plan has given 7.26% annualized returns in the past three years and 6.45% in the last 5 years. The UTI Money Market Fund Institutional - Direct Plan comes under the Debt category of UTI Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in UTI Money Market Fund Institutional - Direct Plan via lump sum is ₹ 500.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 500.00

AUM

₹ 19,328.10Cr

1Y Returns

5.97%

Expense Ratio

0.15%

Bandhan Money Market Fund - Direct Plan

Fund Performance: Bandhan Money Market Fund - Direct Plan has given 7.27% annualized returns in the past three years and 6.38% in the last 5 years. The Bandhan Money Market Fund - Direct Plan comes under the Debt category of Bandhan Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Bandhan Money Market Fund - Direct Plan via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 15,908.00Cr

1Y Returns

6.10%

Expense Ratio

0.10%

DSP Savings Fund - Direct Plan

Fund Performance: DSP Savings Fund - Direct Plan has given 7.07% annualized returns in the past three years and 6.18% in the last 5 years. The DSP Savings Fund - Direct Plan comes under the Debt category of DSP Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in DSP Savings Fund - Direct Plan via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 9,809.90Cr

1Y Returns

5.99%

Expense Ratio

0.19%

HSBC Money Market Fund - Direct Plan

Fund Performance: HSBC Money Market Fund - Direct Plan has given 7.15% annualized returns in the past three years and 6.24% in the last 5 years. The HSBC Money Market Fund - Direct Plan comes under the Debt category of HSBC Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in HSBC Money Market Fund - Direct Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 1,000.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 6,638.52Cr

1Y Returns

5.91%

Expense Ratio

0.14%

Invesco India Money Market Fund - Direct Plan

Fund Performance: Invesco India Money Market Fund - Direct Plan has given 7.09% annualized returns in the past three years and 6.19% in the last 5 years. The Invesco India Money Market Fund - Direct Plan comes under the Debt category of Invesco Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Invesco India Money Market Fund - Direct Plan via lump sum is ₹ 1,000.00 and via SIP is ₹ 1,000.00.

Min Investment Amt

₹ 1,000.00

AUM

₹ 5,938.38Cr

1Y Returns

5.89%

Expense Ratio

0.16%

LIC MF Money Market Fund - Direct Plan

Fund Performance: LIC MF Money Market Fund - Direct Plan has given 6.62% annualized returns in the past three years. The LIC MF Money Market Fund - Direct Plan comes under the Debt category of LIC Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in LIC MF Money Market Fund - Direct Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 200.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 5,439.20Cr

1Y Returns

6.13%

Expense Ratio

0.17%

Franklin India Money Market Fund - Direct Plan

Fund Performance: Franklin India Money Market Fund - Direct Plan has given 7.26% annualized returns in the past three years and 6.36% in the last 5 years. The Franklin India Money Market Fund - Direct Plan comes under the Debt category of Franklin Templeton Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Franklin India Money Market Fund - Direct Plan via lump sum is ₹ 10,000.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 10,000.00

AUM

₹ 4,309.45Cr

1Y Returns

5.99%

Expense Ratio

0.16%