Investing in Funds

Money Market Funds

1

Money Market Funds are funds that are managed by an investment manager, who invest in short-term, low-risk credit securities on behalf of clients. The aim is to maximise returns while reducing risk.

2

The managers of money market funds especially want to minimize risks associated with credit, the market, and liquidity. They usually invest in assets such as government bonds or short-term bonds.

3

Retail money market funds are those that are offered to the general public. They are usually offered by banks or brokerage firms and have certain rules, such as having a minimum balance (such as £50,000).

4

Money market funds offer investors a return that is similar to the official interest rate, which varies from one country to another. Investors can hold the fund from a few days to several years.

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1. How much can you expect to earn from a cash investment?

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