Short-Term Investment Fund
- Short-Term Investment Fund
A Short-Term Investment Fund is a type of investment fund which invests in money market investments of high quality and low risk. They are commonly used by investors to temporarily store funds while arranging for their transfer to another investment vehicle that will provide higher returns. [cite web|url=http://www.investopedia.com/terms/s/stif.asp|title=Short-Term Investment Fund - STIF|author=Investopedia (Forbes Media)|accessdate=2008-07-15]
This type of fund aims to protect capital while generating a return that compares favourably with a particular benchmark, such as a Treasury Bill index. These types of fund have low management fees (usually well beneath 1% p.a.) and relatively low rates of return, commensurate with their low-risk investment style.
References
External Links
* [http://www.state.ct.us/ott/STIFHome.htm "The Treasurer’s Short-Term Investment Fund", Connecticut USA] (an example STIF)
* [http://www.state.ct.us/ott/StifUpdates/DailyRates.htm STIF interest rate examples]
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