Market Snapshot:
A Money Market Fund is a type of mutual fund that invests in low-risk, short-term securities. These funds typically invest in assets such as Treasury bills, certificates of deposit, commercial paper, and other highly liquid and low-risk instruments. They aim to provide investors with a relatively safe place to park their money while earning a slightly higher interest rate compared to traditional savings accounts. Money market funds are known for their stability and liquidity, making them attractive options for investors looking for a combination of safety and modest returns .Money Market Funds have witnessed a steady upward trend in recent times, largely due to investors seeking safer avenues amid market volatility. The market for these funds has expanded, driven by the quest for stable investment options offering reasonable returns. Opportunities in this sector continue to grow as regulatory changes and evolving financial landscapes pave the way for innovative approaches within the realm of short-term, low-risk investments.
Highlights from Money Market Fund Market Study
Attributes | Details |
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Study Period | 2018-2028 |
Base Year | 2022 |
Unit | Value (USD Million) |
The key Players profiled in the report are Vanguard Group (United States ), BlackRock (United States ), Fidelity Investments (United States), J.P. Morgan Asset Management (New york), Invesco (United States), Schwab (United States) and PIMCO (Pacific Investment Management (United States ). Additionally, other players that are part of this comprehensive study are Northern Trust Asset Management (Chicago), Amundi (France) and State Street Global Advisors (United States).
Geographic Breakdown and Segment Analysis
The Global Money Market Fund market presents a comprehensive analysis of the Money Market Fund market by product type (Global Money Market Fund Sales Market Segment Percentages, by Type, 2021 (%), Prime Money Fund, Government Money Fund, Treasury Fund and Tax-Exempt Money Fund), by end-user/application (Direct Sales, Indirect Sales, Investment, Low Risk, Liquidity, Income Generation and Regulation), and by geography (North America, South America, Europe, Asia-Pacific and MEA) along with country level break-up. This section of our report presents a realistic picture of the Global Money Market Fund industry. Investors and Players can easily understand the inherent opportunities and challenges for their products in geographical region of interest.
For instance, while the holds majority of market share of the Money Market Fund market
Analyst at AMA have segmented the market study of Global Money Market Fund market by Type, Application and Region.
Influencing Trend:
Growing use in institutional portfolios. and Expansion into international markets
Market Growth Drivers:
Low-interest rate environment and Investor preference for stability and liquidity
Challenges:
Sustaining competitive yields in a low-rate environment and Adapting to evolving regulatory landscapes
Restraints:
Low yields due to prevailing low-interest rates. and Regulatory compliance and changes
Opportunities:
Innovation in fund structures and offerings and Expansion into emerging markets
Market Developments Activities:
In June 2023 BlackRock Inc. and Kreos Capital today announced a definitive agreement under which BlackRock will acquire full control of Kreos, a leading provider of growth and venture debt financing to companies in the technology and healthcare industries.
In August 2023 BlackRock has teamed up with investment platform lightyear to launch a suite of money market funds for retail investors .
Regulatory Insights:
Money market funds (MMFs) offer daily redemptions to investors while investing in shortterm fixed income assets such as Commercial Paper (CP) or Certificate of Deposits (CDs) issued by financial institutions. Over time, MMFs have become key intermediaries in the financial system most notably on the short-term funding markets. Investors tend to treat MMF shares like deposits or a cash-like instrument and use them as short-term cash management vehicles.
The mutual fund industry has undergone a tremendous change in the past few years. MFs compete with one another either by satisfying different economic functions or by configuring the activities in the value chain so as to produce a low-cost or a differentiated product.
Key Target Audience
Financial Institutions, Government Entities, Individual Investor, Strategic Business Planners, Government Regulatory and Research Organizations