Money market funds offer many benefits to investors, including:
- Diversification of investments across securities and by issuer.
- For many short-term MMFs, same day liquidity.
- Outsourcing of credit analysis to a professional cash management team.
- Segregation of assets.
- Competitive money market returns.
- Diversification away from single exposure bank risk.
Only IMMFA funds must comply with additional restrictions in the Principles of Best Practice.