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.
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.
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).
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.
Copyright © 2021 Methodology