The aim of money market funds is to provide easy liquidity, preservation of capital and moderate income to the conservative investor.
It is also ideal for corporate and individual investors as a means to park their surplus funds for short periods of even 1 day, whilst waiting for the right opportunity. There is no service charge nor redemption costs.
These funds generally invest in short-term instruments (less than 365 days) such as treasury bills, certificates of deposits, commercial papers and inter-bank call money. Returns on these funds fluctuate depending upon the interest rates prevailing in the market.
No comments:
Post a Comment