Money Market Mutual Funds and Its Advantages

Since the operations in the money market are dominated by institutional players, the retail investor involvement in the money market is limited. For such retail investors who want to invest in the money market, money market mutual funds provide a possibility to retail investor to invest their money into the money market.

Here are some of the advantages of money market mutual fund –

1. It is ideal for those investors who keep their money in saving accounts of bank, because the return from money market mutual fund is higher than that of bank saving deposit.

2. It is highly liquid and hence investor can take his money whenever he requires.

3. It is safe to invest in money market mutual funds because investment of such mutual funds is in high quality securities of government or high rated corporate bonds.

4. Overhead costs of such mutual funds are also low than other type of mutual funds and hence it is an added advantage for the investor.

Hence from the above one can see that money market mutual fund is a low risk and high return source of investment for those investors who want to invest in money market.

0 comments… add one

Leave a Comment

Related pages

what is fii and dii in share marketadvantages of a mixed economic systemtariff vs quotadeferred revenue journal entrieswhat are substitutes and complements in economicsadvantages to socialismindirect quotationwhat does consignee meandirect quote forexconglomerate merger meaningwhat is income effect and substitution effectdisadvantages and advantages of mixed economyimplications of capmbank withdrawal slipprepaid expenses journal entriesfull form fdidemerits of online shoppingdirect and indirect currency quotesconglomerate mergersmateriality accounting conceptdisadvantages of importingdisadvantages of merging companieswhat is the difference between accounts payable and accounts receivabledisadvantages of monopolistic competition market structureadvantage and disadvantages of social mediawhat are the advantages of autocratic leadershipdisadvantages of bills of exchangedefinition of durable goodrepo rate full formgolden rules of accounts with exampleswhat is privatization and commercializationdisadvantages of profitability ratiosdirect and indirect quote in forexvertical analysis of a balance sheetskimming strategiesadvantages and disadvantages of convertible bondsexamples of inferior goods and normal goodsdisadvantages of cash managementexamples of securitizationwhat is idle time in cost accountingfeatures of derivative marketwhat is an explicit costadvantages of penetration pricingcash flow statement wikipediawhat are disadvantages of globalizationunqualified audit report examplebenefits of jit manufacturingdiminishing returns examplesstrengths and weaknesses of market economydisadvantages of competitive pricingcheque defineunitary price elasticity of demanddisadvantage of mixed economyprepaid wages journal entrydefine nondurable goodwhat are the advantages of socialismadvantages of mixed economyskim the cream pricingconsumer nondurable goodscore product augmented productbank loan accounting entriesjob costing process costingadvantages of ppfsocialism advantagesdifference between capitalist economy and socialist economydisadvantages of marginal costingskimming marketingaccording to the law of diminishing marginal utilityvertical analysis of financial statementfunds flow analysismarginal diminishing utilitysystematic risk and unsystematic risk pdf