What is the current RBI repo rate?

The RBI repo rate is 5.25% as of the June 2026 MPC meeting. Repo rate is the rate at which RBI lends short-term to commercial banks, and is the key benchmark for loan and deposit interest rates across India.

What is a liquid fund and is it better than a savings account?

A liquid fund invests in debt securities maturing within 91 days. It typically earns 1-2% more than a savings account, with redemption usually credited within 1 business day (instant redemption up to ₹50,000/day at most AMCs), making it a common place to park idle cash.

What is the difference between liquid, overnight and money market funds?

Overnight funds hold securities maturing in 1 day (lowest risk/return). Liquid funds hold securities maturing within 91 days. Money market funds can hold instruments maturing up to 1 year, typically earning slightly more than liquid funds for slightly more risk.

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Money Market

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 2026

Repo 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.

Overnight Funds (232) Liquid Funds (417) Money Market Funds (177) Ultra Short Duration (221) Low Duration Funds (53)

Portfolio duration of 3-6 months. A step up in return (and risk) from liquid/money market funds.

Top Ultra Short Duration — by 1Y Return

Fund	Rating	1Y Return	3Y Return	Expense Ratio
🏆 HDFC Hybrid Debt Fund - IDCW Monthly	★★	7.26%	-1.12%	0.09%
HDFC CRISIL-IBX Financial Services 3-6 Mon...	★★★★★	7.15%	—	0.09%
HDFC CRISIL-IBX Financial Services 3-6 Mon...	★★★★★	7.15%	—	0.09%
TATA Ultra Short Term Fund-Regular Plan - ...	★★★★★	7.09%	7.53%	0.33%
TATA Ultra Short Term Fund-Regular Plan - ...	★★★★★	7.09%	7.53%	0.33%
Tata Ultra Short Term Fund-Regular Plan-Gr...	★★★★★	7.09%	7.53%	0.33%
ICICI Prudential CRISIL-IBX Financial Serv...	★★★★★	7.08%	—	0.11%
NIPPON INDIA ULTRA SHORT DURATION FUND - W...	★★	7.06%	7.6%	0.34%
Nippon India Ultra Short Duration Fund- Di...	★★	7.06%	7.6%	0.34%
NIPPON INDIA ULTRA SHORT DURATION FUND - Q...	★★	7.06%	7.6%	0.34%

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.

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Fund data updates daily via AMFI NAV feed. RBI rates updated manually after each MPC meeting. Not investment advice — please do your own research.