Hi we continue financial management eleven. We are at number
seven mutual fund I completed that, let’s clarify another important little
detail. One important type of mutual fund, and the pension fund. Some people
think that pension fund is separate from financial institutions others think
that pension funds just is a specialized mutual funds. Now another important
type of mutual fund we can separate it out is money market mutual funds. Money
marketing mutual funds is simply mutual fund which invest or specialize in
marketing instruments. and we have short term low risk financial instruments.There are three money market instruments, main instrument the first main
instrument is T bill. They love to invest in T bill.
They are the most save the most liquid and
therefore, number two is CD’s, certificate of deposits, issued by commercial
banks, and the third one is, CP, commercial paper issued by, good high quality
corporations. These three equities can include over 90 percent of the funds and
the third characteristic is check-writing, in check writing we simply service
that allows to write a check and make a payment against your mutual fund. So as
soon you have check writing mutual fund is lower risk and safe it act like a
bank account just like a deposit.
watch "financial managementslecture eleven" here
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