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        <p>Liquidity investment strategy: An introduction to money market funds and ultra-short duration funds</p>

        Find out how building a liquidity investment strategy based on money market funds and ultra-short duration bond funds can offer short-term investors a liquid and secure alternative to cash deposits.

        1. Home
        2. Resources
        • Getting started
        • Choosing a product
        • Evaluating risks
        • Due diligence

        Liquid options for cash investors

        For 50 years, money market funds (also known as liquidity funds) have been providing institutional cash investors and treasury professionals with attractive levels of security, liquidity and yield compared to conventional deposits or direct investments in money market securities. However, building a robust liquidity investment strategy requires a thorough understanding of the structure of money market funds, as well as the interest rate, liquidity and credit risks that they are subject to.

        It’s also crucial that investors understand the fundamental characteristics of different money market fund options, and that they are able to implement a cash segmentation strategy that is needed to employ step-out strategies, such as ultra-short duration bond funds, as part of an optimised cash portfolio solution.

        JP Morgan

        Get started with money market funds

        Our Global Liquidity Investment Academy is designed to take cash investors through the three key stages of money market fund investing.

        1.

        Choosing a liquidity product

        Gain a clear understanding of the differences in product structures and holdings, and see which products could help to optimise your cash strategy.

        Discover more
        2.

        Evaluating and managing risks

        Understand the inherent interest rate, liquidity and credit risks associated with liquidity products, and learn how to mitigate these risks.

        Discover more
        3.

        Regulation and due diligence

        Recognise the rules and regulations that govern money market funds, and find out how to select liquidity managers using an effective due diligence process.

        Discover more

        Harnessing the power of perspective to build stronger liquidity strategies

        We believe every investor deserves an expert global partner. For results you can rely on, we draw on knowledge earned over a century of investing, across a team spanning diverse and unique perspectives.

        Learn more
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