Looking for a low-risk investment with liquidity and stable returns? A Money Market Fund (MMF) could be your perfect choice. These mutual funds invest in short-term, high-quality debt instruments like treasury bills, commercial papers, and certificates of deposit. Designed for parking surplus funds safely, MMFs offer flexibility without compromising on returns.

1. Low Risk:Invests in highly secure, short-term instruments.
2. High Liquidity:Easy redemption for quick access to funds.
3. Stable Returns:Less volatile than equities, linked to short-term interest rates.
4. Professional Management:Expert fund managers optimize investments.
5. Short-Term Horizon:Ideal for 1 day to 1 year investments.

1. Lower sensitivity to interest rate changes
2. Better returns than savings accounts
3. Quick access to funds
4. Safer than long-duration debt investments

1. Secure investment for short-term needs
2. Higher returns than traditional savings accounts
3. Flexible liquidity for emergencies
4. Diversified portfolio across multiple instruments

• Modest returns compared to equity or long-term debt funds
• Not entirely risk-free; small interest rate fluctuations possible
• No guaranteed principal protection
• Tax on gains may reduce net returns

Short-term capital gains (≤36 months):Taxed as per your income slab

Long-term capital gains (>36 months):20% tax with indexation benefits

Dividends:Taxed as per current slab rates

A Money Market Fund is perfect for investors seeking safety, liquidity, and moderate returns for short-term goals. Paired with a Low Duration Fund, it offers a balanced approach to low-risk investing, making it an attractive option over traditional savings accounts.