Money Market — Rates & Short-Term Funds
RBI policy rates plus a live comparison of Liquid, Overnight, Money Market & Ultra Short Duration mutual funds
Quick Summary
- Money market funds (Liquid, Overnight, Ultra Short Duration) invest in short-term debt instruments — they're the closest mutual fund equivalent to a savings account, used mainly for parking cash you'll need soon.
- This page shows current RBI policy rates (repo rate, reverse repo) alongside a live comparison of these fund categories by returns and expense ratio.
- Liquid and Overnight funds typically offer same-day to T+1 redemption, making them useful for an emergency fund or short-term parking between investments.
- Returns here are generally lower than equity funds but with far less volatility — most of these categories rarely show a negative day.
RBI Policy Rates
Unchanged since 05 Jun 2026Repo Rate
5.25%
Reverse Repo Rate
3.35%
Bank Rate / MSF
5.5%
CRR
3.0%
SLR
18.0%
Source: RBI. Confirmed current as of today — rates only change at MPC meetings (~6x/year). Next scheduled MPC meeting: 07 Oct 2026.
Invest in debt securities maturing within 91 days. Instant redemption up to ₹50,000/day. The classic savings-account alternative.
Top Liquid Funds — by 1Y Return
| Fund | Rating | 1Y Return |
|---|---|---|
| 🏆 HSBC Liquid Fund - Direct Daily IDCW | ★★★★★ | 6.59% |
| Axis Liquid Fund - Retail Plan - Weekly IDCW | ★★★★★ | 6.59% |
| Abakkus Liquid Fund - Direct Plan - Monthl... | ★★★★★ | 6.59% |
| Aditya Birla Sun Life Government Securitie... | ★★★★★ | 6.59% |
| Axis Liquid Fund - Direct Plan - Monthly IDCW | ★★★★★ | 6.59% |
| Axis Liquid Fund - Regular Plan - Daily IDCW | ★★★★★ | 6.59% |
| HSBC Liquid Fund - Direct Weekly IDCW | ★★★★★ | 6.59% |
| Aditya Birla Sun Life Govenment Securities... | ★★★★★ | 6.59% |
| Aditya Birla Sun Life Income Fund - Regula... | ★★★★★ | 6.59% |
| Axis Liquid Fund - Retail Plan - Daily IDCW | ★★★★★ | 6.59% |
Better Than a Savings Account
Liquid funds typically earn 1-2% more than a savings account's ~3.5%, with next-business-day redemption. A common place to park emergency funds or idle cash.
RBI Rates Set the Floor
The repo rate anchors what banks charge each other and, indirectly, what money market funds and FDs can earn. When RBI cuts rates, expect these fund yields to gradually follow.
Not Risk-Free
Unlike a savings account, money market funds aren't insured (no DICGC cover) and NAV can fall on credit events, though this is rare for overnight/liquid funds.
Fund data updates daily via AMFI NAV feed. RBI rates updated manually after each MPC meeting. Not investment advice — please do your own research.