Money market mutual funds (mmmfs), Financial Management

Since the operations in the money market are dominated by institutional players, the retail investor's participation in the market seems to be limited. To overcome this limitation, the Money Market Mutual Funds (MMMFs) provide an avenue to the retail investor to invest in the money market. Retail investors normally deposit short-term surplus funds into a savings bank account, the returns from which are relatively low. The returns from MMMFs will be higher than the interest earned in a bank. Further, this provides adequate liquidity and the investor can plan for short-term deployment of funds. These funds have high safety levels since the investments are in high quality securities, i.e., government/bank/highly rated corporate securities. Thus, MMMFs represent a low-risk and high-return avenue to the retail investor in the money market.

Posted Date: 9/8/2012 5:36:11 AM | Location : United States

Related Discussions:- Money market mutual funds (mmmfs), Assignment Help, Ask Question on Money market mutual funds (mmmfs), Get Answer, Expert's Help, Money market mutual funds (mmmfs) Discussions

Write discussion on Money market mutual funds (mmmfs)
Your posts are moderated
Related Questions
Q. Computation of Value of the Firm? Illustration:- EBIT                                                               = 50,000 10% Debentures

Explain and derive the international Fisher effect. Answer:  The international Fisher effect can be acquired by combining the Fisher effect and the relative version of purchasi

Q. Representation of generator winding? The notation using subscripts is such that VAB is the potential at point A with respect to point B, IAB is a current with positive flow

the approach focussed mainly on the financial problems of a corporate enterprise

Q. Calculate Average Annual Return? An investor buys a bond in 1978 maturity in 1980 at Rs.900. It has a maturity value of 10 years and par value of Rs. 1000. It fetches RS.90

Planning to Achieve Budget Goals: It is insufficient for an organisation or a project team to simply set budget goals and expect management and employees to work in the same ma

State the term- Pass Through Certificates (PTCs) Pass through Certificates (PTCs) are debt securities which pass through income from debtors through intermediaries to investors

Stable Money Measurement A business entity enters within numerous transactions in which affect the business in varied ways.  Therefore recording, classification and summarizat

Q. Show the Costs of Investment in Receivables? Costs of Investment in Receivables: - When a firm sells goods or else services on credit it has to bear numerous types of costs.

Event studies are one of the most powerful and widely used applications of the capital asset pricing model (CAPM). An event study is an attempt to determine whether a particular ev