Introduction to Money Market or Liquid Funds

What are money market or liquid funds?

Money Market or Liquid Funds are a subtype of income funds. Their primary objectives are capital preservation, liquidity, and delivering moderate returns. They predominantly invest in short-term instruments like treasury bills, commercial papers, and term deposits. Due to their short investment horizon, they pose minimal interest rate risk. They are ideal for investors looking to park surplus funds for short durations while ensuring safety and earning modest returns.

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