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Funds in Mutual Fund

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There is a range of entrance mutual funds in the market. They include
•    Money market Mutual funds
Money Market Mutual Fund is a product that spends principally in short term instruments maturing in a year or less. They include instruments such as Treasury Bills, Commercial Papers and Certificate of Deposit. This product mainly invests in some of the safest investment products and hence the risk element is very low down. Hence this is suited for risk adverse investors looking for short term investment chances.
•    Liquid funds
Liquid funds are an investment product used to park excess funds for a short period of time such as 1-3 months. It is a substitute to short term fixed deposits. This fund invests chiefly in low down maturity money market instruments and the call money market. The purpose is to provide income with very lofty liquidity. The interest rate danger in liquid fund is very low down because the instruments in which they spend are very short term.
•    Gilt Funds
These funds spend wholly in government securities know as G-secs. These are instruments issued by the Central and State Government having middle to long term maturity. By asset of them being a supreme security, they are assigned the highest credit rating and hence carry minimal risk. It is beneficial to invest in a medium/long term gilt fund when the interest rates are about to go down and in short term gilt fund when the interest rates are on the climb.
•    Income Funds
They principally include short term and medium term funds in some of the most safe investment products and therefore the risk element is very low down. Hence this is suitable for risk reluctant investors looking for short term investment chances.