What are cash, money market, and short duration bond funds?

Cash, money market and short duration bond funds are investment funds that hold high quality and low volatility fixed income instruments. There are no lock-ups for these funds. 

 

Cash Fund (lowest risk): 

A cash fund invests primarily in a diversified portfolio of institutional bank fixed deposits. Cash funds are considered to be the lowest risk of any investment funds with a potential loss risk of 0.01% or less in the case of a maximum drawdown.  

 

Money Market Fund (very low risk):

A money market fund invests primarily in a diversified portfolio of institutional bank fixed deposits, as well as high quality investment-grade and very short duration government and corporate debt instruments. They are diversified across varying issuers and tenures maintaining a weighted average duration of around 12 months or less. Money market funds are considered to be very low risk in nature with a potential loss risk of 0.05% in the case of a maximum drawdown. 

 

Short Duration Bond Fund (low risk):

A short duration bond fund invests primarily in a diversified portfolio of institutional bank fixed deposits, as well as high quality and investment-grade short duration government and corporate debt instruments. They are diversified across varying issuers and tenures maintaining a weighted average duration of around 24 months or less. Short duration bond funds are higher risk than cash and money market funds but still considered to be low risk in nature with a potential loss risk of less than 2% in the case of a maximum drawdown.