NFO Alert: Shriram Mutual Fund announces launch of Shriram Money Market Fund

Shriram Mutual Fund has announced the expansion of its fixed income offering with the launch of the Shriram Money Market Fund, an open-ended debt scheme. The fund will invest in high-quality money market instruments with maturity of up to one year, aiming to provide regular income while maintaining high liquidity and a controlled risk profile, in line with regulatory norms.

The new fund offer or NFO of the fund will open for subscription on January 19 and will close on January 21.

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Money market funds have increasingly emerged as a preferred option for investors looking to park short term surplus funds, offering the potential for better returns than traditional savings instruments, along with daily liquidity and relatively low volatility, according to a press release by the fund house.

Reflecting this shift, money market fund AUM has grown more than threefold—from Rs 1.11 lakh crore in the Oct–Dec 2022 quarter to Rs 3.57 lakh crore as of November 2025 (as per AMFI)—as investors moved surplus funds into liquid, higher-yielding avenues amid higher interest rates and market volatility. Against this backdrop of rising demand for efficient cash management solutions, Shriram Asset Management Company Limited has launched the Shriram Money Market Fund, marking a strategic step in the expansion of its fixed income franchise, the release further added.

As liquidity management becomes a core requirement for institutional treasuries, corporates and individual investors, the fund strengthens Shriram AMC’s offering beyond its existing debt products such as the Shriram Overnight Fund and Shriram Liquid Fund, while reinforcing the AMC’s intent to build a comprehensive and scalable fixed income bouquet aligned with evolving cash management needs.

Shriram Money Market Fund will invest in a diversified portfolio of money market instruments, as defined by SEBI and RBI from time to time, with residual maturity of up to one year. These instruments include Commercial Papers, Certificates of Deposit, Treasury Bills, Triparty Repo, Repo/ Reverse repo in government securities, Government securities with an unexpired maturity up to one year and any other short-term instruments allowed under current regulations.

The scheme’s performance will be benchmarked against the NIFTY Money Market Index A-I (Total Return Index).

The launch also reflects Shriram AMC’s focused capability-building in fixed income. In October’25, the AMC strengthened its investment team with the appointment of Amit Modani as Senior Fund Manager and Lead Fixed Income, bringing extensive experience across money market and short-duration strategies.

The Shriram Money Market Fund is the first new fund launch since his joining, underscoring the AMC’s ability to swiftly translate enhanced capabilities into product execution, the release said.

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Building on this momentum, Shriram AMC is actively expanding its fixed income product pipeline, with plans to introduce additional solutions aimed at meeting the evolving liquidity, duration, and risk management needs of institutional treasuries, corporates, HNIs, and retirees

“As liquidity management becomes a core component of portfolio construction across investor segments, we are strengthening our fixed income offerings to address evolving cash management needs. The launch of the Shriram Money Market Fund reflects this strategic focus, supported by the continued strengthening of our fund management capabilities, including the recent addition of Amit Modani to our fixed income team. With a clear emphasis on risk discipline and execution, we will continue to expand our fixed income product suite to offer relevant solutions across liquidity, duration and risk profiles,” said Kartik L Jain, MD and CEO, Shriram Asset Management Company.

“Our approach to managing the Money Market Fund is centred on high-quality instrument selection, prudent credit evaluation, and active liquidity management. By maintaining a well-diversified portfolio and closely monitoring market conditions, we aim to deliver risk-appropriate returns consistent with the fund’s objective. The scheme remains aligned with the core principles of money market investing — capital preservation, liquidity, and transparency,” said Amit Modani, Senior Fund Manager, Shriram AMC.

The minimum application amount is Rs 1,000, and subsequent investments can be made in multiples of Re 1 thereafter. There is no exit load with redemption proceeds expected to be dispatched within three business days, in line with regulatory norms.