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This Money Market Fund, Ranked 1 By CRISIL, Offered Steady Returns Over The Years

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Money Market debt funds invest in bonds with a maturity of up to one year. They aim to earn slightly better returns than what you can get from a bank account or a short-duration fixed deposit. The risk of incurring a loss in these funds over the said timeframe is low but they do not guarantee returns or safety of capital. Such funds are usually more suited to institutional investors. Here, we have given a detailed analysis of the Nippon India Money Market Fund that offered steady returns over the years:

 

Nippon India Money Market Fund 
 

Nippon India Money Market Fund 

NAVFund SizeExpense Ratio
Rs 3321.4125Rs 8215.11 Cr0.17%

Nippon India Money Market Fund Direct-Growth is a Nippon India Mutual Fund Money Market mutual fund plan. This fund has been around for nine years, having started on January 1, 2013. Nippon India Money Market Fund Direct-Growth has an AUM (Assets Under Management) of Rs 8,215 Cr as of December 31, 2021, making it a medium-sized fund in its category. The fund's cost ratio is 0.17%, which is comparable to the expense ratios charged by most other Money Market funds.

The 1-year returns for Nippon India Money Market Fund Direct-Growth are 4%. It has had an average yearly return of 7.46% since its inception. The ability of the Nippon India Money Market Fund Direct-Growth plan to provide consistent returns is comparable to that of other products in its category. By investing in money market instruments, the Scheme aims to achieve optimal returns while maintaining a reasonable degree of risk and liquidity. It has an above-average capacity to control losses in a sinking market. Exit Load is not attracted to the offered fund. 

The fund's credit record is excellent, suggesting that it has lent to high-quality customers. Because most funds in this category lend to stronger borrowers, the risk of default is higher in this fund than in others in the category. GOI, ICICI Securities Ltd., Axis Bank Ltd., Bank Of Baroda, and Cholamandalam Investment & Finance Co. Ltd. are among the fund's top holdings. 

Returns Over The Years

Returns Over The Years

Nippon India Money Market Fund - Direct Plan- Growth, offered following returns over the years and since its inception on the Rs 10,000 investment, NAV as on 20 January, 2022:

Period Invested forAbsolute ReturnsAnnualised ReturnsCategory Avg
1 Year4.00%4.00%3.85%
2 Year10.12%4.93%4.86%
3 Year19.00%5.95%6.06%
5 Year37.25%6.53%6.39%
Since Inception91.96%7.46%6.40%
SIP Performance

SIP Performance

The Rs 500, with an extra Rs 500 required as well is required to start SIP for the fund. The Fund has offered a steady growth over the years, these returns rates are as follows:

Period Invested forAbsolute ReturnsAnnualised Returns
1 Year2.11%3.92%
2 Year4.49%4.28%
3 Year7.86%4.96%
5 Year16.24%5.95%

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme-related documents, Terms and Conditions carefully before investing. The above-mentioned information is purely informational and carried forward from MoneyControl and CRISIL. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.

Story first published: Friday, January 21, 2022, 12:46 [IST]
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