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A Systematic Investment Plan or SIP is an investment vehicle through which investors can invest specific amounts of money in mutual funds. This is done periodically such as monthly, quarterly or annually.<br>This presentation will show you the benefits of starting a systematic investment plan(https://www.edelweissmf.com/invest-in-sip).
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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.
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.
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
