Sundaram Money Market Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 16, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
Sundaram Money Market Fund Direct Growth Plan had a NAV of ₹16.3199 as of 15 September 2026 and a scheme AUM of ₹1,719 Cr. Its 1-year, 3-year and 5-year returns are 6.59%, 7.31% and 6.51% respectively, and the scheme sits in the Medium Risk category.
Our view is that this is a steady debt scheme rather than a return-chasing one. The portfolio is built around short-duration money market instruments, so it may suit conservative investors who want relatively stable participation and are comfortable with moderate interest-rate and credit exposure.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹16.3199 as of 15 Sep 2026 |
| AUM | ₹1,719 Cr |
| Expense Ratio | 0.17% |
| Launch Date | 26 Sep 2018 |
| Min SIP | ₹250 |
| Risk Category | Medium Risk |
| Benchmark | Nifty 50 |
| Fund Category | Debt |
| Exit Load | No exit load |
| Fund Managers | Sandeep Agarwal, Kumaresh Ramakrishnan |
The fund is managed by Sandeep Agarwal and Kumaresh Ramakrishnan.
Source data date: as of 15 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | 0.51% | -4.81% |
| 3M | 1.90% | -3.63% |
| 1Y | 6.59% | -8.27% |
| 3Y | 7.31% | 5.59% |
| 5Y | 6.51% | 5.58% |
The short-term numbers show a smoother pattern than the benchmark, which has been weak over the same recent windows. Over 1 month and 3 months, the fund remained positive while the benchmark was negative, which points to better downside control in the recent period.
Longer term, the fund’s 3-year return of 7.31% and 5-year return of 6.51% are both above the benchmark’s 5.59% and 5.58%. That suggests the scheme has compounded better than the comparison index over both medium and longer horizons, even though the gap is not extreme.
The 1-year figure is also healthy at 6.59%, and it lines up more closely with the 3-year and 5-year profile than with any sharp short-term spike. In our view, that makes the return path look orderly rather than opportunistic. The pattern is consistent with a debt fund that has delivered incremental gains without the sort of pronounced swings that equity-linked funds can show.
For investors, the key point is that recent behaviour and longer-term behaviour point in the same direction. The fund has not relied on one strong quarter to build its track record; instead, it has posted a fairly even compounding trend with a modest edge versus the benchmark.
Source data date: as of 15 Sep 2026
Should you BUY or HOLD Sundaram Money Market?
A fund’s past returns alone don’t tell you whether you should buy it today or continue holding it.
The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.
Already holding Sundaram Money Market? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| Sundaram Money Market Fund Direct Growth Plan | 6.59% | 7.31% | 6.51% |
| Union Money Market Fund Direct Growth Plan | 6.82% | 7.22% | 6.48% |
| Bank of India Money Market Fund Direct Growth Plan | 6.75% | Data not available | Data not available |
| Tata Money Market Fund Direct Growth Plan | 6.73% | 7.55% | 6.84% |
| Bandhan Money Market Fund Direct Growth Plan | 6.69% | 7.42% | 6.67% |
| LIC MF Money Market Fund Direct Growth Plan | 6.69% | 6.81% | Data not available |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
On the 1-year figure, the fund sits in the same general range as the peer set, but it does not lead that group on the available numbers. Tata Money Market Fund Direct Growth Plan and Bandhan Money Market Fund Direct Growth Plan have slightly higher 1-year returns, while Union Money Market Fund Direct Growth Plan is also ahead on that measure.
The longer-term picture is more balanced. The fund’s 3-year and 5-year returns are both competitive, with the 5-year figure better than several peer figures available here and the 3-year figure close to the stronger names in the group. That makes the comparison less about one-off short-term movement and more about whether the scheme has kept pace across full market cycles.
In our view, the short-term and longer-term comparisons tell different but not conflicting stories: the recent 1-year number is decent, while the 3-year and 5-year numbers show that the fund has sustained its compounding reasonably well over time.
Source data date: as of 15 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| Axis Bank Ltd – 12/02/2027** | Certificate of Deposit | 5.64% |
| Indian Overseas Bank – 24/02/2027** | Certificate of Deposit | 5.63% |
| LIC Housing Finance Ltd – 11/02/2027** | Commercial Paper | 4.51% |
| Punjab National Bank – 05/02/2027 | Certificate of Deposit | 4.24% |
| The Federal Bank Ltd – 29/01/2027** | Certificate of Deposit | 4.24% |
| Indusind Bank Ltd – 14/12/2026** | Certificate of Deposit | 3.71% |
| Bank of Baroda – 05/02/2027** | Certificate of Deposit | 3.11% |
| Embassy Office Parks Reit – 12/03/2027** | Commercial Paper | 3.08% |
| Indian Bank – 24/05/2027** | Certificate of Deposit | 3.04% |
| 91 Days – T Bill – 22/10/2026 | Treasury Bills | 2.89% |
The largest holding is Axis Bank Ltd – 12/02/2027** at 5.64%, which is sizable for a money market portfolio but still not dominant. The top ten holdings together account for approximately 40.09% of the portfolio, so the fund is not concentrated in a single position even though the leading names matter.
Weight declines gradually from the first holding to the tenth, moving from 5.64% to 2.89%. That is a fairly measured spread, which may reduce the impact of any one issuer compared with a more top-heavy portfolio. At the same time, the holdings are mostly short-dated certificates of deposit and commercial paper, so the portfolio may be more sensitive to credit selection than to long-duration rate moves.
With 42 disclosed holdings in total, the visible list suggests a relatively long tail beyond the top ten. In our view, that spread could help dilute single-security influence, while the combined weight of the leading positions still means the largest names are likely to have greater influence on near-term returns.
To see all holdings, visit the Sundaram Money Market Fund Direct Growth Plan page
Source data date: as of 15 Sep 2026
Who should invest
This scheme may suit investors who want a conservative debt allocation with moderate risk tolerance and a preference for steadier returns. The Medium Risk label fits a portfolio that is not designed for high-volatility outcomes, and the recent 1-year, 3-year and 5-year pattern shows consistent compounding rather than sharp jumps.
The main trade-off is that the fund appears steadier than many growth-oriented products, but it also does not aim for large upside. The benchmark comparison and the peer comparison both suggest a generally solid, but not standout, return profile. That makes the fund more appropriate for investors who value stability and liquidity over aggressive return seeking, and who are comfortable with a money-market style portfolio holding short-dated debt instruments.
Tax and exit load
| Holding period | Tax rate | Description |
|---|---|---|
| Units held less than 1 year | 20% | Short-term capital gains tax |
| Units held more than 1 year | 12.5% | Long-term capital gains tax |
No exit load applies.
Source data date: as of 15 Sep 2026
Frequently asked questions
What is the current NAV of Sundaram Money Market Fund Direct Growth Plan?
The current NAV is ₹16.3199 as of 15 September 2026.
What are the fund’s 1-year, 3-year and 5-year returns?
The 1-year return is 6.59%, the 3-year return is 7.31%, and the 5-year return is 6.51%.
How does the fund compare with its benchmark?
The fund has outpaced the benchmark over 1 year, 3 years and 5 years. The benchmark numbers are weaker over recent periods, especially over 1 month and 3 months.
How does it compare with peer funds on available return data?
Its 1-year return is competitive but not the highest among the peer examples listed. Over 3 years and 5 years, it remains broadly in line with the stronger peer figures and is ahead of some peers where data is available.
Is there a minimum SIP amount?
The minimum SIP amount is ₹250.
Who manages the fund and what is the exit load?
The fund is managed by Sandeep Agarwal and Kumaresh Ramakrishnan. No exit load applies.
Bottom line
Sundaram Money Market Fund Direct Growth Plan shows a steadier return pattern over time than its benchmark, with the 3-year and 5-year figures supporting the recent 1-year result. Against peers, it looks competitive on available data, though the latest 1-year number is not the strongest in the group. The Medium Risk profile, short-dated debt holdings and relatively broad set of 42 disclosed holdings make it a fit for investors who want a conservative debt sleeve with measured return potential.
Published on 16 September 2026 at 8:35 AM IST
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RIA disclosure
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.