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You should invest in money market funds if you want to maintain liquidity and preserve wealth. It is ideal for investors with a short-term outlook of less than a year.

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Q: What are my options if i want to invest in a fund that can help me maintain liquidity?
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Liquidity ratio in mutual funds?

Liquidity Ratio in a Mutual Fund house is the amount of money they maintain as cash or near cash instruments.For example, a MF house has an AUM (Asset Under Mgmt) of $100 million and they maintain a liquidity ratio of 10% it means they would invest $90 million in securities and retain the $10 million as cash.Need to maintain Liquidity:The main reason to maintain the liquidity (cash reserves) is to meet the redemption requirements of customers. Not all customers would want to remain invested always. As the fund house has the responsibility to honor the redemption requests, they need to maintain cash reserves using which they would pay those customers.


Can banks invest in mutual funds?

They can invest their own income/profits in a mutual fund but they cannot invest the depositors money in a mutual fund


Where life insurance companies invest their life fund?

Life insurance companies invest their life fund in Government fund, shares in First Class companies of repute,as per advice of their Fund Investment Advisors.


Functions of mutual fund?

function of mutual fund are; 1 professional management 2 affordabiliti 3 liquidity 4 diversification


What is mutual fund how to invest in it?

mututal fund represents a vehicle for collective investments....an individual who cant invest directly in securities market cantake help of mutual fund to invest on his behalf..in nutshell it is indirect investing.....the way to invest is through a mutual fund like kotak mf/ icici mf/uti mf/ hdfc mf etc.....be informed wherever u invest and be a regular monitor of ur investments...

Related questions

Liquidity ratio in mutual funds?

Liquidity Ratio in a Mutual Fund house is the amount of money they maintain as cash or near cash instruments.For example, a MF house has an AUM (Asset Under Mgmt) of $100 million and they maintain a liquidity ratio of 10% it means they would invest $90 million in securities and retain the $10 million as cash.Need to maintain Liquidity:The main reason to maintain the liquidity (cash reserves) is to meet the redemption requirements of customers. Not all customers would want to remain invested always. As the fund house has the responsibility to honor the redemption requests, they need to maintain cash reserves using which they would pay those customers.


Who are the people who invest a fund's assets?

The Fund Manager is the person who invests the funds Assets Investors invest in the Fund to create the Assets that will be invested by the Fund Manager


Can banks invest in mutual funds?

They can invest their own income/profits in a mutual fund but they cannot invest the depositors money in a mutual fund


Where does the fund manager invest the fund?

It depends on the type of the mutual fund and also the investment objective of the fund. For Ex: A equity diversified fund would invest in a combination of large and mid cap shares whereas a debt mutual fund would invest in bonds and other government securities whereas a gold ETF would invest in the precious metal gold


Where life insurance companies invest their life fund?

Life insurance companies invest their life fund in Government fund, shares in First Class companies of repute,as per advice of their Fund Investment Advisors.


What do you do if you have excess fund?

Invest it in a good place...


Functions of mutual fund?

function of mutual fund are; 1 professional management 2 affordabiliti 3 liquidity 4 diversification


Can Indian mutual fund invest in shares and securities abroad?

Yes, they can. But, not all mutual funds can invest in shares and securities abroad. They can only do so, if the mutual fund scheme has it in the fund objectives.


What is mutual fund how to invest in it?

mututal fund represents a vehicle for collective investments....an individual who cant invest directly in securities market cantake help of mutual fund to invest on his behalf..in nutshell it is indirect investing.....the way to invest is through a mutual fund like kotak mf/ icici mf/uti mf/ hdfc mf etc.....be informed wherever u invest and be a regular monitor of ur investments...


What options other than pension do you have for a retirement fund?

There are many options for retirement funds. In addition to a pension, you can also invest in a 401K with your employer. Other retirement savings options are: life insurance policies, Keogh plans, savings bonds, or investing in stocks.


When you own a mutual fund what exactly do you own?

Mutual fund is a low risk investment. If you invest in a mutual fund, you owns shares of the mutual fund company who is selling you fund. But you do not actually own any underlying asset of the stocks or securities that mutual fund has invested in even they are using your money to invest.


What companies did filipinas mutual fund invest in?

insurance