Two Money Market Fund Outperformed Their Benchmark, Given Over 15% SIP Returns In 5 Years

In a world where nothing is certain, an investing strategy that guarantees a consistent and stable income while conserving your wealth is a wise choice. Even without the current epidemic, war, global supply chain disruptions, or global instability, there are compelling reasons to invest in fixed income investment products. Mutual funds such as the Money market fund is a debt fund that doesn't guarantee returns, however, it is less risky compared to equity mutual funds. Here, we have given insights into two money market mutual funds that have not only outperformed their benchmark but are also top-rated by the CRISIL, a mutual fund rating agency.

Nippon India Money Market - Direct Plan-Growth

This Money Market Fund was launched on 16 June 2055 by the Nippon India Mutual Fund. It is an open-ended medium-sized and moderate risky fund of its category.

The Asset Under Management (AUM) of this fund is Rs 8112.47 crore. The Net Asset value Or NAV of the fund as of May 06 2022 is Rs 3355.9651. This fund has an expense ratio of 0.04%, which is less when compared its category average expense ratio. 

This funds benchmark is CRISIL Money Market Fund BI Index. The fund has outperformed its benchmark. The fund is a top-rated fund. It has been rated 5-Star by the CRISIL. It has also given promising return performance among its peer funds. Since its launch, it has delivered 7.34% average annual returns.

For investment in this fund, the minimum investment amount required is Rs 500 for the Lump-Sum payment, as well as for additional investment. Whereas, for SIP the amount is Rs 100. There is no lock-in period in this fund.

Portfolio

The fund has 99.26% investment in Debt of which 24.34% in Government securities and 74.92% in funds invested in very low-risk securities The fund's credit profile is very high indicating it has lent to borrowers whose quality is excellent. Most funds in this category lend to better borrowers and hence the risk of default in this fund is higher than in the category.

SIP Returns

 

Tenure	Absolute Returns	Annualised Returns
1 Year	2.00%	3.73%
2 Year	4.10%	3.92%
3 Year	7.14%	4.53%
5 Year	15.25%	5.62%

Edelweiss Money Market Fund - Direct Plan-Growth

This Money market Mutual fund scheme was launched by the Edelweiss Mutual fund on June 27, 2008. It is a low to moderate risk fund. It is an open-ended medium-sized fund of its category.

The fund has worth Rs 311.86 crore of Asset under Management (AUM). Whereas, the fund's Net Asset Value (NAV) declared on 06th May 2022 is Rs 25.26. The fund has an expense ratio of 0.16%, which is less than its category average expense ratio when compared. 

Its benchmark is NIFTY Money Market Index B-I. As mentioned, this fund has outperformed its benchmark. The fund has been rated 5-star by the CRISIL. The fund has given promising returns among its peer funds. Since its launch, it has delivered 7.62% average annual returns.
To start investment in this fund, the minimum investment amount required is Rs 5,000 for the Lump-Sum payment and Rs 500 for additional investment. Whereas, for SIP the amount is Rs 500. There is no lock-in period in this fund.

Portfolio

The fund has 86.86% investment in Debt of which, 86.86% in funds invested in very low-risk securities. The fund's credit profile is very high indicating it has lent to borrowers whose quality is excellent. Most funds in this category lend to similar borrowers and hence the risk of default in this fund is the same as in the category.

SIP Returns

Tenure	Absolute Returns	Annualised Returns
1 Year	1.64%	3.05%
2 Year	3.54%	3.39%
3 Year	6.96%	4.42%
5 Year	17.43%	6.36%

Disclaimer

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