MMFs suitable for current environment, to gain on hardening interest rates

Mirae Asset Mutual Fund’s recently completed new fund offer of a money market fund (MMF) has brought this category on investors’ radar. Currently, there are 18 funds with cumulative assets under management of Rs 1,22,632.3 crore. MMFs are well suited for the current environment where interest rates could harden.

Low-risk category

These schemes invest in money market instruments such as treasury bills, commercial papers and certificates of deposit, which have a maturity of up to one year. Most schemes in this category avoid taking any credit risk. According to the June 2021 portfolio, almost all funds have 100 per cent