Ch.5 · NFO Process and Rules · medium
What risk level on the Riskometer would typically be assigned to a liquid fund?
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EXPLANATION
Liquid funds invest in instruments with maturity up to 91 days and carry minimal interest rate risk. They are typically rated 'Low to Moderate' on the Riskometer. While they have negligible interest rate risk, they carry some credit risk from the underlying instruments, which prevents a 'Low' rating.
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