Money market mutual funds are the most secure mutual fund units that you could buy as bulk of the money is placed in secure instruments, particularly treasury bills.

The performance of these funds is directly related to interest rate movement in India. Take a look at the some of the top ranked money market mutual funds in the country.

UTI Money Market Mutual Fund

UTI Money Market has given a return of 9 per cent in the last one year. This is not bad considering that it is in line with what even banks have to offer.

However, mutual funds tend to give you tax benefits that banks deposits might not. Bulk of the assets under management of the fund are placed in Treasury Bills which are very safe. The fund also has exposure to the commercial paper of Vedanta and India Infoline, which could be the slightly risky part of the portfolio.

Axis Liquid Fund - Direct plan

The Axis Liquid Fund Direct Plan is another money market fund that has given decent returns in the last few years. The fund was just launched a couple of years back. The last one year return has been just under 9 per cent. The fund has exposure to the Commercial Paper of India Bulls Housing, Export Import Bank, Reserve Bank of India and IDBI Bank.

Birla Sun Life Cash Plus - Direct Plan

The Birla Sun Life Cash Plus Plan has generated returns that are better than most of its peers. It has given a returns of more than 9 per cent since being launched on Jan 1, 2013. In fact, the return is a decent 9.25 per cent.

The fund has exposure to the fixed deposits of IndusInd Bank, Bank of Maharahstra Certificate of Deposits and Commercial Paper of Tata Capital.

Most of the instruments are secure and the fund's future performance would depend on interest rate movements in the economy.

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