The fund is predominantly invested in AAA/A1+ equivalent securities, ensuring high credit quality to investors
FinTech BizNews Service
Mumbai, 27 January 2026: Baroda BNP Paribas Mutual Fund (BBNPP MF) recently celebrated six years of Baroda BNP Paribas Money Market Fund while crossing Rs4,500 crore Monthly mark. The fund, an open-ended debt scheme investing in high-quality money market instruments, has emerged as a reliable choice for investors seeking low-interest rate risk, low credit risk, and high liquidity for parking short-term surpluses.
The Portfolio of Money Market Fund is designed in a manner to implement active interest rate and liquidity driven calls in addition to delivering better accrual and liquidity. The fund is predominantly invested in AAA/A1+ equivalent securities, ensuring high credit quality to investors.
Strong Performance and Benchmark Outperformance
As on 15th Jan 2026, the fund’s regular plan has delivered a robust performance, posting 7.16% one-year returns, comfortably outperforming its benchmark, the CRISIL Money Market A-I Index, which generated sub-7% returns.
At a time when fixed income rates have declined, the fund has offered a superior alternative. An investment of Rs1 lakh at launch would have grown to approximately Rs1.42 lakh, reflecting consistent accrual and active portfolio management.
The fund is managed by Vikram Pamnani and Gurvinder Singh. The portfolio as on 15th Jan 2026 has an YTM of 6.78%, Modified Duration of 0.43 and Average maturity of 0.43years. The portfolio allocation is more in 4-6 months maturity bucket. Below AAA securities comprise of only approximately 20%, SLR & cash around approximately 15%
With its consistent performance, disciplined portfolio construction and strong liquidity profile, the Baroda BNP Paribas Money Market Fund continues to position itself as a trusted short-term investment option. As it enters its seventh year, the fund remains aligned with its core objective — offering potential stability, flexibility, and competitive returns in a changing interest-rate landscape.
