Shriram AMC Launches Money Market Fund as Sector Assets Top ₹3.5 Lakh Crore
Overview
Shriram Asset Management Company has introduced the Shriram Money Market Fund, an open-ended debt scheme focused on short-term investments. The launch occurs as the money market fund category in India experiences rapid expansion, with assets under management now exceeding ₹3.57 lakh crore. This move caters to investors seeking to park surplus funds safely amidst prevailing higher interest rates and market volatility.
Shriram Asset Management Company (AMC) has launched the Shriram Money Market Fund, an open-ended debt scheme that will open for subscription from January 19-21, 2026. The fund aims to invest in money market instruments with a residual maturity of up to one year, offering investors relatively low interest rate risk and moderate credit risk.
Category Surges Amid Market Volatility
The launch comes as the broader money market fund category in India witnesses substantial growth. Assets under management (AUM) have surged from ₹1.11 lakh crore in October-December 2022 to ₹3.57 lakh crore as of November 2025, according to data from the Association of Mutual Funds in India (AMFI). This significant increase reflects a growing investor preference for these funds as a secure place to park short-term surplus funds, driven by higher interest rates and increased market volatility.
Shriram AMC's Strategic Move
The Shriram Money Market Fund will invest in instruments including commercial papers, certificates of deposit, treasury bills, and government securities with unexpired maturities up to one year, adhering to SEBI and RBI guidelines. The scheme will be benchmarked against the NIFTY Money Market Index A-I Total Return Index. Kartik L Jain, MD & CEO of Shriram AMC, stated the fund is designed to address the evolving cash management needs across different investor segments. The firm appointed Amit Modani as Senior Fund Manager and Lead Fixed Income in October 2025, signaling a focused approach to its fixed-income offerings. The minimum investment for the fund is ₹1,000, with no exit load and redemption proceeds expected within three business days. The fund will be available under Direct and Regular Plans with a Growth option.
