Mutual Funds

Money Market Funds – Important Things to Know

Mutual funds like money market funds offer high liquidity, with a short-term maturity period guaranteeing less risky investment opportunities with higher gains.

February 7, 2025
Done DIY? Let’s Personalize Your Investment Plan
Take Risk Assessment

What is a Money Market Fund

Money Market Funds are a type of mutual fund that invests in short-term, high-quality, and liquid debt instruments, providing a low-risk investment option with relatively stable returns. These funds are designed to offer investors a safe place to invest easily accessible cash equivalents, making them ideal for those seeking capital preservation and liquidity.

Key Features and Characteristics of Money Market Funds

Money Market Funds possess unique features that distinguish them from other types of mutual funds. Understanding these characteristics can help investors make informed decisions about whether this type of fund aligns with their financial goals.

  • Principal Stability: Money Market Funds aim to maintain a stable net asset value (NAV), typically around £1 per share.
  • Credit Quality: Investments are made in high-credit-quality instruments, reducing the risk of default.
  • Short Maturity Periods: The instruments in Money Market Funds have short maturities, usually under one year, contributing to their stability.
  • Daily Liquidity: Investors can redeem their investments on any business day, offering high liquidity.
  • <

Share this story on:

Top 5 Reasons To Try Our Powerful Investment App!

Schedule a call based on your convenience. And get an expert to help you invest.

  • High Quality Mutual Funds
  • Curated Stock Advisors
  • Handpicked Debt Instruments
  • Jargon Free Approach
  • Low Minimum Investments

Want the best
investment blog delivered straight to your inbox?

Thank you for joining our mailing list!
Oops! Something went wrong while submitting the form.

Grow your money without wasting time

on stock picking, poring over excel sheets, financial news, analyzing market trends, tracking the Sensex, researching company fundamentals, comparing mutual funds, reading financial reports, trying to predict the future & losing your sanity!

X

Upload Your CAS. Let Us Do the Heavy Lifting.

Click to upload a File

OR

Drag and drop CAS File Here

Instructions to get your CAS

  1. Visit CAMS or KFintech
  2. Enter your email, PAN, and set a password for your CAS.
  3. Select the Detailed CAS option (not the summary) from your first investment date until today or choose 1st January 2000 for convenience.
  4. Click Submit. Your CAS will be sent to your registered email. It usually arrives in about 5 minutes, but may take up to an hour.
  5. Return here, upload the CAS, and enter the chosen password to allow us to analyze it.

Got your CAS?