money market instruments

Types of Financial Instruments with Examples

Different Kinds of Financial Instruments

Financial instruments are essential tools used in the world of finance to facilitate the flow of funds and manage various financial risks. These instruments can be categorized into several types based on their characteristics and functions. 1. Equity Instruments-These represent ownership in a company. Common stock is a primary example, giving shareholders ownership rights and …

Different Kinds of Financial Instruments Read More »

What are Overnight Funds

What are Overnight Funds ? – Meaning, Benefits and Works!

Introduction:- Overnight funds are a type of mutual fund that invests in highly liquid money market instruments, such as treasury bills, commercial paper, and certificates of deposit. These securities have a maturity period of one day, maturing the very next day after they are purchased. As a result, overnight funds are considered low-risk investments since …

What are Overnight Funds ? – Meaning, Benefits and Works! Read More »

Fixed Maturity Plan

What is FMP in Mutual Fund ? All About Fixed Maturity Plan

A Fixed Maturity Plan is a closed-end debt mutual fund scheme. An FMP looks similar to a  fixed deposit where one puts money for a specific period and gets it back at maturity with a  specific tenure say 3 to 4 years along with some appreciation. The difference is that one cannot withdraw before maturity, …

What is FMP in Mutual Fund ? All About Fixed Maturity Plan Read More »