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. What is Accumulated Depreciation? Accumulated Depreciation - Total DEPRECIATION pertaining to an ASSET or group of assetsfrom the time the assets were placed in services unt

Q. Define the finance function? Is it a risk-return trade off? What is the basic role of a modern financial manager? What is the basic importance of finance function in the mana

Global Sector Indixes Morgan Stanley Capital International (MSCI) measures the International and National performance. It launched All Country Sectors on January 30, 2001. MSCI

Discuss the applicability of an operating cycle in cabbage growing business in Uganda.

Q. Explain Present Value of a Series of Cash Flows? Present Value of a Series of Cash Flows: - In a business circumstances it is very natural that returns received by a firm ar

a) An approx. 3% defect rate (i.e. 0.03 x 300m units) = 9m units per year. b) A apparent definition of Quality Assurance should be awarded, e.g. the management process of guaran

• Sales revenue line drawn and labelled correctly and accurately • Fixed cost line (at $1,020) labelled and drawn accurately and correctly • Total costs line (starting at $1,

Treasury Inflation-Protected Securities (TIPS) are the inflation-indexed bonds, the US Treasury offers. The first offer was made in the year 1997. As the name sug

Offshore Financial Center It is a location with banking facilities to accept deposits and make loans in currencies various from the currency's country of origin. Banks located

What is Control risk That material misstatement could take place and not be detected, or prevented on a timely basis, by accounting and internal control systems. All audits