Advantages of SIP

1
What are money market mutual funds
2
introduction

• Money market mutual funds are funds that invest
  in short-term debt instruments, cash and cash
  equivalents that are rated high quality.
• It is for this reason that money market mutual
  funds are considered safe or investment with
  minimal to low risk. As these funds invest in
  high-quality instruments, they offer a
  predictable risk-free return rate.

3
How do money market mutual funds work

• Money market mutual funds are used to manage
  short-term cash needs. These funds are open-ended
  in the debt fund category and deal only in cash
  or cash equivalents. Money market securities have
  an average maturity of one-year that is why
  these are termed as money market instruments.
• The fund manager invests in high-quality liquid
  instruments such as treasury bills (T-Bills),
  repurchase agreements (Repos), commercial papers,
  and certificates of deposit. Money market funds
  mainly target earning interest for the
  unitholders. The primary aim of money market
  funds is to minimize the fluctuation of the Net
  Asset Value (NAV) of the fund.

4
Factors to consider while investing in money
market mutual funds

• Following are the factors to consider before
  invest in money market mutual funds
• 1. Risk
• 2. Returns
• 3. Costs
• 4. Investment Horizon
• 5. Tax on Gains

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