This Money Market Fund Has Given 6.51% Absolute Returns On 3-Years SIP, Rated by CRISIL

Investors in debt mutual funds place a premium on the security of their investments. Perhaps this is why most regular investors overlook some debt mutual fund categories. Most mutual fund managers and consultants advise conservative debt investors to adhere to safer short-term debt funds. Investment in a debt fund is safe compared to an equity fund. One such category of a debt fund is a Money market fund. Here, we have picked one Mutual Fund scheme from the category. This money market fund outperformed the benchmark and gave over 32.26 absolute returns on lumpsum investments.

IDFC Money Manager Fund - Direct Plan-Growth

This Money Market Fund is a debt fund from the house of IDFC Mutual Fund. This is a medium-sized open-ended fund of its category launched on 18 February 2003. The size of the Asset Under Management (AUM) of the fund is Rs 3,348.69 crore. The Net Asset Value (NAV) declared on 1st June 2022 is Rs 35.0411. The fund's expense ratio and the category average expense ratio are the same which is 0.21%.

The fund invests in money market instruments. Also, this is a scheme with relatively low-interest rate risk and relatively low credit risk. The scheme aims to generate stable returns with a low-risk strategy by creating a portfolio that is substantially invested in money market instruments. It is a low to moderate risky fund. The fund was also rated 3 star by the CRISIL and 2 star by the value research.

The fund's benchmark is NIFTY Money Market Index A-I. To Start Investment in this fund, the minimum amount required is Rs 100, for a lump-sum payment. Rs 100 for additional investment and Rs 100 to start SIP. There is no lock-in period in this fund. Also, there is no exit charge. The Fund is suitable as a 'Core' debt allocation and is recommended for a minimum investment horizon of 6 months.

 

Absolute & Annualised Returns

Lump-Sum Investment Returns

Since its launch, it has delivered 7.21% average annual returns.

Tenure	Absolute Returns	Annualised Returns
1 Year	3.50%	3.50%
2 Year	7.69%	3.77%
3 Year	15.62%	4.95%
5 Year	32.26%	5.75%
Since Inception	92.63%	7.21%

SIP Returns

Tenure	Absolute Returns	Annualised Returns
1 Year	1.80%	3.36%
2 Year	3.70%	3.54%
3 Year	6.51%	4.14%
5 Year	13.72%	5.09%

Portfolio

The fund has 96.05% investment in Debt of which 19.64% in Government securities, and 76.41% 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. The fund's top holdings are in the Government of India, Axis Bank Ltd., Reliance Retail Ventures Ltd., Reliance Jio Infocomm Ltd., and Indian Bank.

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.