Money Market Mutual Funds
An institution which deals in short-term funds is collectively named as Money market. Short term funds mean the working capital which is required in the business for its day to day trading. Manufacturers, Traders, Industrialists, Businessmen borrow this short term fund. Since money market provides short term funds it encourages more production in the country and the lender also earns by way of high interest. Central Bank is the controller of money market. Cheques, promissory notes and bills are the instruments that are dealt here which provide working capital. Reserve Bank of India has initiated ‘Money Market Mutual Funds’ in which institutions can invest their funds for a period of 15 days in mutual funds.
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