Money market fund
Key points
- The portfolio’s weighted average maturity cannot exceed 45 days and it is priced daily.
- Its advantage over deposits is flexibility: you can exit on any day without waiting for maturity and the withholding rate can be lower depending on fund type.
- return can lag inflation, so a real loss is possible.
Formula / calculation
the fund settles same day; units bought in the morning trade at that day’s price and sale proceeds are credited the same day. Return accrues daily into the price with very low fluctuation. Yatırımcı.AI lists money market funds with daily and annual returns.
Interpretation
Its return largely tracks the CBRT policy rate and deposit rates.
Its advantage over deposits is flexibility: you can exit on any day without waiting for maturity and the withholding rate can be lower depending on fund type. In a high-rate environment annual return stays close to the policy rate.
Pitfalls
return can lag inflation, so a real loss is possible. Management fees differ across funds and directly determine net return. Rate cuts lower the return quickly; there is no guaranteed yield.
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Frequently asked questions
What is Money market fund?
A money market fund is a low-risk fund investing in highly liquid deposits, repos and short-term debt instruments with at most 184 days to maturity.
How is Money market fund calculated?
the fund settles same day; units bought in the morning trade at that day’s price and sale proceeds are credited the same day. Return accrues daily into the price with very low fluctuation. Yatırımcı.AI lists money market funds with daily and annual returns.
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