Will money market funds' party end soon?
Feb 07, 07:02

In three months ended February 3, 2023, among very short term debt schemes, money market funds topped performance chart with 1.65 percent gains. These invest in bonds and money market instruments maturing in less than one year.

There is an expectation of a hike in repo rate by the RBI on February 8. Financial markets are also factoring in a rate cut towards the end of CY2023, and investors in overnight and liquid funds foresee the returns going down by year-end. In such circumstances, investors with around one year timeframe may want to consider money market funds.

Investors must check the track record and current portfolios of money market funds before investing.
Yields VS Returns