A money market fund is a type of mutual fund that invests in low-risk, short-term debt securities, such as commercial paper, Treasury bills, and certificates of deposit. These funds aim to provide investors with a stable and relatively safe investment option that generates a higher yield than traditional savings accounts.
Despite their relatively low risk profile, it is important to read the fund’s prospectus carefully and understand the risks associated with investing in money market funds before making any investment decisions. At Pelican Insurance Brokers (K) Ltd, we provide protection for investors in the event that the fund’s sponsor becomes insolvent.
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