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Money Market 2018
project details
Money Market 2018
work process
Description of the project
The Money market in India is a correlation for short-term funds with maturity ranging from overnight to one year in India including financial instruments that are deemed to be close substitutes of money. The existence of a well-organized bill market is essential for the proper and efficient working of money market. Unfortunately, in spite of the serious efforts made by the Reserve Bank of India, the bill market in India has not yet been fully developed.
The Problem
- Shortage of funds.
- The low per capita income (PCI).
- Poor banking habits among the people.
- Inadequate banking facilities in the rural areas.
- Indulgence in wasteful consumption.
The Strategy
- The money market strategy constitutes securities with very low maturities. These are safe instruments that offer fixed returns to investors over the period of investment.
- These strategies can be actively managed to optimize on interest rate movements and market outlook.
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Money market instruments also have the potential of giving investors higher returns than a savings account and a fixed deposit primarily due to its fundamental characteristics.