Dictionary of Banking Terms: short-term investment funds
short-term investment funds
generic name for pooled investment funds that invest in short-term money market instruments or government bonds. Also called short-term funds. Examples are money market mutual funds, collective investment funds managed by bank trust departments, and tax-exempt funds that invest in securities issued by state and local governments. Many of these funds have minimal investment requirements, can be bought or sold at any time, and are highly liquid investments. Collective investment funds, for example, are composed largely of assets that mature in 91 days or less, and are payable on demand.
