DSP Savings Fund Leads Money-Market Race Delivering 1.9% Gain in Three Months Amidst Rising Rates
In a crucial ranking of money-market mutual funds, DSP Savings Fund has emerged as a top performer based on its three-month returns. The fund recorded a gain of 1.9 percent over the specified period, positioning it among the leaders in this short-term investment category. This performance underscores the role of these instruments in maintaining stability within the fixed income space.Three-Month Performance Highlights Top Money-Market Funds
The ACE MF data reveals a tight race among leading funds during the three-month window. DSP Savings Fund delivered 1.9 percent, closely followed by Aditya Birla SL Money Manager Fund and UTI Money Market Fund, all achieving comparable gains of 1.9 percent. This competitive landscape highlights the efficiency required to excel in short-term debt management.The screening process used for this ranking strictly limits consideration to schemes that maintain assets under management (AUM) exceeding ₹1,500 crore. Among the five funds meeting this substantial corpus criterion, Tata Money Market Fund stands out with the largest AUM at ₹33,030.0 crore. This massive corpus suggests significant investor trust in the fund's stability and management.
Long-Term Returns Show Divergence Across Time Windows
While short-term returns are highly competitive, the broader investment picture varies significantly when looking beyond three months. The one-year ranking reveals Axis Money Market Fund as the frontrunner, achieving a strong return of 6.2 percent. Similarly, UTI Money Market Fund secured the top position for the three-year ranking with a cumulative gain of 7.3 percent.A deeper dive into DSP Savings Fund’s performance shows it performed ahead of its benchmark by 1.9 percentage points over one year. On the three-year scale, the fund delivered a lead of 0.5 percentage points compared to its benchmark, which recorded a return of 6.4%. This dual perspective—short-term strength balanced against long-term comparisons—provides investors a fuller view of their fund choices.
Snapshot of Top Money-Market Funds Across Metrics
The competitive field is robust, with various funds demonstrating strengths across different timeframes. The table below provides a comprehensive look at the performance metrics for the top five money-market funds based on ACE MF data from June 24.| Fund name | 3-month return (%) | AUM (₹ crore) | 1-month return (%) | 6-month return (%) | 1-year return (%) | 3-year return (%) |
|---|---|---|---|---|---|---|
| DSP Savings Fund | 1.9 | 9,460.6 | 1.0 | 3.0 | 6.1 | 7.0 |
| Aditya Birla SL Money Manager Fund | 1.9 | 27,550.2 | 1.0 | 3.0 | 6.1 | 7.2 |
| UTI Money Market Fund | 1.9 | 18,610.7 | 1.0 | 3.0 | 6.2 | 7.3 |
| Axis Money Market Fund | 1.9 | 18,185.1 | 1.0 | 3.1 | 6.2 | 7.3 |
| Tata Money Market Fund | 1.9 | 33,030.0 | 1.0 | 3.1 | 6.1 | 7.2 |
Understanding Money-Market Funds for Investors
For those new to the space, a money-market fund invests in short-term money-market instruments. These investments are designed to provide stability and capital preservation while yielding returns related to prevailing interest rates. The performance of these funds is thus closely tied to the overall liquidity conditions and short-term interest rate movements in the market.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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