103k views
5 votes
What type of fund aims to achieve moderate income and preserve capital and liquidity by investing primarily in instruments such as near-cash securities?

1 Answer

5 votes

Final answer:

A Money Market Mutual Fund is designed to provide moderate income while preserving capital and liquidity, investing primarily in short-term, low-risk securities.

Step-by-step explanation:

The type of fund that aims to achieve moderate income and preserve capital and liquidity primarily through investment in instruments such as near-cash securities is known as a Money Market Mutual Fund. These funds focus on maintaining liquidity by investing in short-term financial instruments like government bonds, treasury bills, bankers' acceptances, commercial paper, and certificates of deposit. The objective of these funds is to offer investors a safe place to invest easily accessible, cash-equivalent assets with a low level of risk compared to other types of funds.

User Kirill Husiatyn
by
8.3k points