Money market schemes invest in short-term (maturing within one year) interest bearing debt instruments. These securities are highly liquid and provide safety of investment, thus making money market schemes the safest investment option when compared with other mutual fund schemes. However, even money market schemes are exposed to the interest rate risk. The typical investment options for these funds include Treasury Bills (issued by governments), Commercial papers (issued by companies) and Certificates of Deposit (issued by banks).

Scheme Charateristics Comparison
Types	Investment Objectives	Portfolio of Investments	Risk Associated
Money-Market Funds	Recurring income and capital safety	Invest in short-term (maturing within one year) interest bearing debt instruments	Safest mutual fund investment option, interst rate risk remains
Diversified Debt Funds	To generate fixed current income	These funds invest in all securities issued by entities belonging to all sectors of the market	Low volatility, default risk remains
High Yield Debt funds	To earn higher interest returns	Invest in securities issued by those issuers who are considered to be of "below investment grade"	More volatile and bear higher default risk than diversified debt funds
Assured Return Funds	To offer assurance of annual returns to investors through out the stated lock-in period	Predominantly debt securities	A low-risk investment opportunity
Fixed Term Plan Series	To generate some expected returns in a short period	Usually invest in debt / income schemes	Low risk fund