1. Money market funds are debt funds that invest in instruments with maturities for a period of up to one year.
3. The idea of these funds is to offer good returns over a period of up to one year while maintaining high levels of liquidity.
4. Being debt funds they carry credit risk, interest rate risk and re-investment risk.
5. These are suitable for investors with an investment horizon of up to a year and low risk tolerance.
(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)