Money Market Fund 101

What does "Parking Funds" refer to?

When you are waiting for an entry point for an investment fund, Money Market Fund could be a good alternative to sitting on cash and provide the opportunities to earn returns in Money Market. It is also known as Parking Funds. Besides a relatively lower risk compared with other investment funds, there are usually no additional switching fees[1].

High liquidity to protect investment values

Money Market Fund generally invests in relatively stable and short-term money market assets, including but not limited to Certificate of Deposits, Commercial Paper, and Floating-Rate Notes. This is the reason why Money Market Fund offers a higher liquidity and less volatility when comparing with other mutual funds. Also, Money Market Fund helps to capture yields potentially equivalent to money market, maintain your assets' value against the volatility in a rapidly-changing market.

Features of Money Market Fund

Low-risk investment amid volatile market

When the market trend is uncertain and you have doubts to move in, the Money Market Fund offers a higher liquidity level and higher potential returns with less risk than stocks.

Alternative choice during out-of-market period

You may have a long-term strategy in place, and you are waiting for the right time to go. Investing in the Money Market Fund could be the perfect transitional strategy.

Lower volatility

The Money Market fund invests in high quality and short-term vehicles, which often are considered steadier than stocks and bonds.


  Money Market Fund
Risk Lower risk and mainly invested in high credit rated projects
Investment tenor It's up to you
Higher and allow transaction in daily basis

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Other Point(s) to note

  1. Investors should note that all investments involve risks (including the possibility of loss of the capital invested), prices or value of investment fund units may go up as well as down and past performance information presented is not indicative of future performance. Investors should read carefully and understand the relevant offering documents of the investment funds (including the fund details and full text of the risk factors stated therein) and the Notice to Customers for Fund Investing before making any investment decision. Investment funds are investment products and some may involve derivatives. Investors should carefully consider their own circumstances whether an investment is suitable for them in view of their own investment objectives, investment experience, preferred investment tenor, financial situation, risk tolerance abilities, tax implications and other needs, etc., and should understand the nature, terms and risks of the investment products. Investors should obtain independent professional advice if they have concerns about their investment.
    Disclaimer: The information provided herein is for general information and reference purposes only and is not intended to provide professional investment or other advice nor is it intended to constitute solicitation, recommendation, or advice. It is not intended to form the basis of any investment decision. The information provided herein is based on sources believed to be reliable.
  2. The document has not been reviewed by the Securities and Futures Commission of Hong Kong.


  1. Please read the fee details of the relevant investment funds' offering documents