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MONEY MARKET MUTUAL FUNDS (MMMFs)

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Meaning:  MMMFs means funds those are invested in short term debt securities in the money market like:

(a) Certificate of deposits

(b) Commercial Papers

(c) Govt T-Bills They are normally in Large Quantity

Significance: As MMMFs are in Large Size, hence they get a higher yield on such short term instruments in comparison to individual investors. These schemes are ideal for corporate and individual investors as a means to park their surplus funds for short periods. 

Features: MMMFs are exclusively governed by SEBI(MF) Regulations, 1996. Return in the schemes of such funds may fluctuate, depending upon the interest rate prevailing in the market.

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