Liquidity Fund
/ˈlɪkwɪdɪti fʌnd/
Definitions
- (n.) A mutual fund or investment vehicle designed to provide high liquidity with a low level of risk, typically investing in short-term, high-quality money market instruments.
The corporation invested surplus cash in a liquidity fund to ensure easy access to funds.
Forms
- liquidity fund
- liquidity funds
Related terms
See also
Commentary
Liquidity funds are drafted to emphasize safety and ready accessibility, often regulated to limit risk exposure and maintain capital preservation.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.