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Ever wondered what the Money Market is and why people invest in it? Let's dive into some quick insights! 🤘 What is the #MoneyMarket? 🤔 The Money Market is a sector for trading short-term financial instruments, providing high liquidity and low risk. It's perfect for those looking for short-term returns and safe investments! The instruments in this market typically mature in less than a year, making it an excellent place to park funds temporarily and earn interest. Key Money Market Securities: 1. Treasury Bills (T-Bills) 2. Commercial Paper 3. Certificates of Deposit (CDs) 4. Repurchase Agreements (Repos) 5. Bankers’ Acceptances Features of the Money Market: 1. High Liquidity:- Easily converted to cash. 2. Short Maturity:- Typically one year or less. 3. Low Risk:- High credit quality of issuers. Treasury Bills in Detail: T-Bills are short-term government securities issued by the Ministry of Finance through the Reserve Bank of India (RBI). They are sold at a discount to their face value and do not pay interest before maturity. The difference between the purchase price and the face value at maturity represents the interest earned by the investor. These are highly secure investments due to the backing of the government. Why Does the #RBI Issue T-Bills? The RBI issues T-Bills to regulate the money supply in the economy, manage short-term funding needs, and provide a safe investment avenue for investors. By issuing T-Bills, the RBI can help control inflation and stabilize the economy by influencing the amount of money circulating in the market. Current Interest Rates for T-Bills: - 91 Days: 6.71% - 182 Days: 6.82% - 364 Days: 6.84% If a person invests 100,000 Rs. in T-Bills, here’s how much they will earn: For 91 Days at 6.71%: Interest = ₹100,000 × 6.71% = 6,710 Total amount = ₹100,000 + 6,710 = 106,710 For 182 Days at 6.82%: Interest = 100,000 × 6.82% = 6,820 Total amount = ₹100,000 + 6820 = 106,820 For 364 Days at 6.84%: Interest = 100,000 × 6.84% = 6,840 Total amount = 100,000 + 6,840 = 106,840 (Tip- Invest in the money market if you want safe and short-term returns😊) If you find this useful, please like, share, and follow for more updates👍 #moneymarket #investment #finance #treasurybills #rbiissuance #Imarticus #shorttermreturns #safeInvestments

MONEY MARKET : Money market is a market which deals with lending and borrowing of funds for a short period of time which varies from a day to a year. The financial instruments traded here have high liquidity. Money market helps in fulfilling short term financial needs of companies, banks, government agencies, etc. • FEATURES OF MONEY MARKET : 1) MATURITY PERIOD: The funds borrowed and lent in this market are for short term having maximum time frame of a year. 2) PARTICIPANTS : Reserve Bank of India, commercial banks, mutual funds, financial institutions, primary dealers and corporates are the participants of the money market. 3) RISK FACTOR : Money market funds are considered low risky. • INSTRUMENTS OF MONEY MARKET : (1) Interbank lending instrument : a. Call money b. Notice money c. Weekend money d. Term deposit e. Intraday money (2) T Bills/ Treasury Bills (3) Commercial papers (4) Certificate of deposits (5) Repo agreements • TREASURY BILLS / T BILLS : ~ Meaning- Treasury Bills are short term securities issued by Reserve Bank of India on behalf of the Central Government of India to meet government’s short term funds requirements. ~ Maturity and rate of interest: Treasury Bills have three maturity periods and the rate of interest depends on its maturity. The interest rates as of now for the time period is as follows: For 91 days - 6.71 % For 182 days - 6.82 % 364 days - 6. 84 % ( interest rates issued on August 2 , 2024 ) ~ Buyers: These bills are bought by banks and individuals, firms, institutions, etc. These bills are negotiable instruments and are freely transferable. ~ Pricing : i. The minimum value of T-bills is Rs. 25,000. ii. T-Bills are issued at a discount and repaid at par and hence they are also called Zero Coupon bonds. Money market is an important component of the financial market for short-term borrowing. It plays an essential role as it increases liquidity of funds in the economy.

Explain the money market securities. mention the key securities that you have studied explain treasury bills in detail with their ongoing interest rates _Introduction The money market is a place of large institutions and the Government so manage their short term cash needs. _Meaning of Money Market Money market refers to the market where money and highly liquid marketable securities are bought and sold having a maturity period of one or less than one year. The money market constitutes a very important segment of the Indian financial system. _The highly liquid marketable securities are also called as money market instruments. Instruments of money market 1.Treasury bills 2.Government securities 3.Commercial paper 4.Certificates of deposit 5.Repurchase agreements etc. _Features of money Market. 1.High liquidity means an asset can be quickly converted to cash at or near market price 2.The important features in the money market are Fixed income securities yield guaranteed returns on investments. 3.These financial instruments are considered one of the most secure investment avenues available in the market. let us understand that an important instrument is #Treasury bills (T -Bills). _The Treasury Bill is a money market instrument issued by the Government of India. The bill is issued as a promissory note of repayment in the future. The purpose of a treasury note is to secure funds to meet the short-term fund requirements of the government. _It's a short term instrument less than one year. _It's a secure investment to invest in term maturity. _Minimum investment in T Bills is Rs.25,000/-. The government issued T Bills is in three formats with a specific interest rate. Interest rate on Treasury bills • 91 days = 6.71% • 182 days= 6.82% • 364 days= 6.84%.

Did you know that as of March 2023, Indian corporations have parked over $5 billion in Treasury Bills? 🤯 These government-backed securities are a popular choice for businesses looking to manage surplus funds securely. Our latest blog breaks down everything you need to know about these government-backed securities. Key Takeaways: 1. What Are T-bills? Understand the basics and benefits of Treasury Bills. 2. How They Work: Learn the mechanics behind T-bills and how they guarantee returns. 3. Types of T-bills: Explore the different types available based on maturity periods. 4. Why Use T-bills? Discover why businesses and safety-seekers prefer T-bills for fund parking. Don't miss out on this valuable information. Read our full blog to learn how T-bills can optimize your fund parking strategy. Read more: https://shorturl.at/4l0ju #BusinessFinance #TreasuryBills #FundParking #InvestmentTips #KOFFi

money market securities Mention the key securities ,Explain treasury bills in detail with their ongoing interest rates - - Money market is a market where money or its equivalent can be traded. Money is a synonym for liquidity. It is a segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. Money Market is a part of the global financial market that deals with short-term lending and borrowing. Unlike a stock exchange, the money market is not a particular place, it is a System. Key features - - Money Markets are often used as a solution to short-term cash needs by governments, largeinstitutions, and sometimes individuals. Funds are available in this market for periods ranging from a single day up to a year. - This market is dominated mostly by government, banks, and financial institutions. There is no ‘physical money market. - money market is like debt markets Instruments of money market - 1) Interbank Lending 2) Treasury Bills, 3) Commercial Papers 4) Repo Agreement 5 ) certificate of deposit Treasury Bill - 91 Day Treasury bill - 6.71 182 Day Treasury bill - 6.82 364 Day Treasury bill - 6.84 Rate of RBI treasury Bill Interest.

One common practice among large corporation worldwide ? Corporates across the globe use treasury bills for fund parking, as they are government-backed and provide much better short-term returns than traditional bank alternatives. Businesses in India are missing out on this opportunity. Check out our latest blog on treasury bills and why corporates love them...

Should you keep your money in Fixed Deposits (FD)? If yes, then how much? Most Indians have a big chunk of their financial assets in Bank FD, thinking that they are making good returns from it. But if you deep dive, you will realize that in FD you make a loss every year in Real Value terms! E.g. Consider FD rate of 7%, post tax returns comes to 4.9%(considering 30% tax bracket). If you compare this to inflation of 8% (basic + lifestyle), the real value of money invested in FD is depleting by 3.1% every year. The 8% inflation (basic + lifestyle) considered here is very modest and it can go in double digits as well for certain individuals depending on their lifestyle habits. >>The amount needed for Emergency Fund (3 to 9 months of monthly expense) can be parked in FD at the most and any amount beyond this will lead to severe cash drag in the portfolio. >>Furthermore, if there is a short term goal (<1Y), capital can be invested in FD or other short term debt instruments. P.S.- Individuals in the highest tax bracket can also choose to invest their Emergency Fund in an Arbitrage fund which tends to give better post tax returns when compared to Bank FD or Liquid Fund. #investing #emergencyfund #BankFD Credence Family Office Mitesh Shah Kirtan A Shah Chanchal Agarwal

What is the Money market securities. Mention the key securities. Explain Treasury bills in detail with their rates. Money Market Security: Money market has become a component of the financial market for buying and selling of securities of short-term maturities, of one year or less, such as treasury bills and commercial papers. Features of money Market: • Short term maturity : The typically have maturities of one year or less, making them short term investment option. • High liquidity: These securities are easily convertible into cash with minimal price, fluctuations, making them a liquid investment. • Low Risk: They are generally offer lower risk compared to long term investment, often by high quality issures like government. • Highly regulated: They are often subject to strict regulatory standards to ensure stability and protect investors. Key Points of money Market: • Inter bank lending • Treasury Bills • Commercial Paper • Certificate of Deposits • Repo Agreements Treasury Bills •Treasury bills, also known as T-bills, allow the subscriber to earn a profit on investment by redeeming the treasury bills at face value. • A Treasury bill (T-bill) is a short-term debt obligation backed by the U.S. Department of the Treasury with a one-year maturity or less. • They are short-term investment instruments with three tenures of 91, 182 and 364 days. Current Interest rate of T- Bills • 91 Days: 6.71% • 182 Days: 6.82% • 364 Days: 6.84% T- Bills are short term debt securities issued by the government.

Write a post on money market securities that mention the key securities that you have studied. Explain treasury bills in detail with their ongoing interest Rates. -Money market involves the purchase and sale of large volumes of short term (Within a one year) debts products. Money market products are traded on Over the counter. It is not a place like the stock market. Money Market Instruments : 1. Interbank Lending 2. Treasury Bills 3. Commercial Paper 4. Certificate of Deposit 5. Repo Agreements Features of Money market : 1. High Rate Of Interest - In the money market the rate of interest is higher than the Stock market. Banks invest in short term, highly liquid, low risk assets with the funds. 2.Low Risk - Instruments are traded by or issue by the Government, Financial Institutions and Corporations. 3. Liquidity- Money market instruments can quickly convert into cash. 4. Short term maturity- The maturity of the money market is less than one year. #Treasury Bills Treasury bills are issued by the government to borrow short term funds for the requirements of the government. This is the low risk investments by the government. Minimum Rs25000 is an investment. In the Treasury bills there are 3 tenures with their RBI Interest Rates..... 91 days 6.71% 182 days 6.82% 364 days 6.84%. The money market is an secure way to invest into to the short term.

Assimilable Treasury Bond at 9.50% in August 2035. It is evident that only a portion will be exchanged, while the remainder would be covered through a BTC auction. It is unlikely that officials from the Ministry of Finance would resort to tax revenues or BCT monetary financing to repay the balance, making this decision appear prudent. Nothing has changed, and the internal borrowing mechanism continues to operate as usual. We believe this is sensible for several reasons. Firstly, the market is currently functioning and still has significant capacity, as indicated by credit rating agencies Fitch Ratings and Moody's. Business credit demand remains low, as genuine growth has not yet resumed. As long as borrowing from banks is feasible, it is preferable to continue doing so. Secondly, resorting to monetary financing is not inevitable. Furthermore, injecting liquidity in this manner can lead to inflationary consequences. It is preferable to resort to it only in cases of extreme urgency. Finally, if it is possible not to fully utilize the 7,000 MTND, there should be no hesitation in doing so. This credit line has an exceptional nature, and not fully consuming it will confirm this nature, giving the impression that it is a last resort option rather than an easy solution. Even from a political standpoint, such an approach will facilitate obtaining other facilities in the future."