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.

    • Related Articles

    • Are there inherent risks when investing in mutual funds?

      Yes, like all investment vehicles, mutual funds carry risks. They invest in a variety of financial securities such as equities, bonds, and money market instruments. The performance of these securities can be volatile, leading to fluctuations in the ...

    • What are closed-ended funds/schemes in mutual funds?

      Closed-Ended Funds or Schemes are specific types of mutual fund schemes that are available for subscription only during a designated timeframe, often referred to as the New Fund Offer (NFO) period. They come with a predetermined maturity date, ...

    • Why are some mutual funds restricted to SIP or lumpsum investments only?

      Sometimes, mutual funds allow investments only through SIP or only through lumpsum. This is due to rules set by the Asset Management Company (AMC) or exchange. These restrictions help manage the fund better and protect investors. Some high-risk funds ...

    • What are Exchange Traded Funds (ETF’s)?

      An Exchange-Traded Fund (ETF) consists of a pool of securities similar to Mutual Funds traded on an exchange. ETFs are continually priced and can be traded between the Equity market timings, i.e., between 9:15 AM and 3:30 PM. Buying/Selling ETFs is ...

    • Can I place market orders for commodity options on FYERS?

      At FYERS, placing market orders in the MCX Options segment isn't feasible. Given that commodity derivatives, especially Options, witness low trading volumes in India, many of these options contracts are illiquid. Permitting market orders can ...