Syndicate
Money Market Investment Asset Funds
The objective of these funds, known also as “money funds”, is to invest in short term securities (its expiration in the portfolio cannot exceed from eighteen months) and of high liquidity, as is the case of the business promissory notes, bills and assets with a pact of re-buying them. Its about monetary assets whose profitability is usually superior to that offered by alternative investments such as time deposits and sight accounts.
Assets such as: shares, convertible debentures or with rights to participate on increasing in capitals, assets with pending terms of amortizations, etc. are prohibited to enter into the assets of the funds.
These types of funds are indicated for those investors that prefer the liquidity to the fiscal advantages.
The investment in assets of this kind is ideal on periods of uncertainty and for occasions in which the short-term type of interests are higher than those at long term.
Generally, a participant on this kind of funds can liquidate part or all of its participations by the use of sight drafts against accounts linked t the fund.
Certain institutions, even, offer the possibility of doing subscriptions and refunding through automatic cashiers. The requisite to legalize them as a fund is to count with an initial minimum capital.
The most important differences between a movable investment fund and an investment fund of assets on the money market are referred to the vocation of each of these types of funds.
The first have an orientation directed towards the medium and long term, the expiration of their portfolios doesn’t have limits and the variety of securities in them is very ample. As for the second, they present a vocation centered on the short term and the expiration of its portfolios can’t exceed from eighteen months.