Money Market Mutual Funds Were Started by RBI IN, Money market mutual funds are investment vehicles that invest in short-term, low-risk securities such as certificates of deposit, commercial paper, and short-term government bonds. These funds aim to provide a stable, low-risk investment option for investors seeking a safe place to park their money while earning a small amount of interest.
Money market mutual funds are often used by individuals and institutions as a temporary place to hold cash while they wait for investment opportunities or to meet short-term financial obligations. They can also be used as a cash management tool by corporations to manage their daily cash flow needs.
Money market mutual funds are typically considered to be very low-risk investments, as they are invested in high-quality, short-term securities. However, they are not completely risk-free, as the value of the fund can fluctuate based on changes in the market.
One of the main advantages of money market mutual funds is their liquidity, as investors can typically withdraw their money within a few days. They also offer relatively high yields compared to traditional savings accounts and other low-risk investments. However, their yields are typically lower than those of other types of mutual funds.
Money Market Mutual Funds Were Started by RBI
India in 1990 as a part of the reforms in the financial sector. These funds are managed by asset management companies and invest in short-term instruments such as commercial papers, certificates of deposit, and treasury bills. They offer investors a relatively low-risk option for parking their surplus funds for a short period of time.