In the era of the digital financial market, where people are establishing their secondary income through short-term and long-term investment, there are some people who even don’t know what is Money market mutual funds and why they should invest in them. But we have come up with this article to make everyone informed and educated about Money market mutual funds. Basically, Money market funds ly in the section of debt mutual funds that invest the amount in high-liquid assets such as cash and its equivalents that offer high liquidity with a low level of risk. In the following sections, we have poured in ample imperative details about Money market funds. Keep reading this article for more details. Scroll down.
Facts of Concern For Investing In Money Market Mutual Funds
First of all, you need to keep in mind that Money market mutual funds are not as safe as cash although the risk level is extremely low. Generally, Money market mutual funds are good for transient investment as investors invest their money in the schemes for a short period before they think of their target investment. Long-term investment in Money market mutual funds is not advisable at all. Let’s take a look at the significance of investing in money market funds. Swipe down the page.
Which Are The Top Performing Money Market Funds?
If you invest in money market funds then you will have a regular income that will maintain cash flow than sum up the capital amount. As mentioned, the most salient advantage of money market investment is low risk. Since these funds are extremely low on risk, they are a good investment for investors. This investment is good for a short-term time duration while those willing a long-term horizon can consider money market funds as a stop-gap arrangement until they find the long-term funds to invest.
If we talk about the top-performing money market funds most give almost similar returns. However, a few mutual funds have delivered between 7-7.5 percent returns in the past year. It is pertinent to note that only two schemes could beat the benchmark index last year, one is UTI Money Market Fund and the other is Aditya Birla Sun Life Money Manager Fund. The other top-performing money market funds include the HDFC Money Market Fund, Axis Money Market Fund, and Franklin India Money Market Fund. Stay tuned to this website for more details and further updates.