Money Market Mutual Funds are a type of debt fund that offer short-term loans to companies, usually for up to one year. These funds are structured in a way that enables the fund manager to achieve higher returns while maintaining risk control by adjusting the lending duration.

Longer loan durations typically result in higher yields. These funds are well-suited for an investment horizon of 3-6 months as there is a low probability of incurring losses if the investment period exceeds six months. They often provide superior returns compared to Bank Fixed Deposits with similar terms.

Leading Money Market Funds in 2024 include the Nippon India Money Market Fund, UTI Money Market Fund, HDFC Money Market Fund, Aditya Birla Sun Life Money Manager Fund, and Kotak Money Market Fund. It is advisable to invest in Money Market Mutual Funds for at least one year.

These funds typically invest in short-term debt instruments such as Treasury Bills, Commercial Papers, and Certificates of Deposit. While they have a lower risk profile compared to other debt funds, they do carry some risk.

The returns from Money Market Mutual Funds depend on market conditions. Currently, the average returns from these funds over the past five years are about 6.25% p.a. However, it's crucial to recognize that past performance is not a guarantee of future results.

It is always recommended to consult with a financial advisor or conduct comprehensive research prior to investing in any mutual fund.