What Is Call and Short Money?
Call and short money are short-term investments that are typically used as a way to manage cash flow and liquidity. These investments are usually made for a period of one to three months, with the idea being that the investor can quickly access the funds when needed. Call money is usually invested in government securities, while short money is typically invested in corporate bonds or other debt instruments.
How Can Investors Benefit From Call and Short Money?
Call and short money provide investors with a low-risk, low-cost way to manage their cash flow and liquidity needs. By investing in short-term investments, investors can access their funds quickly and without the need for significant upfront capital. Additionally, these investments are often backed by government securities, which provide a degree of safety and security.
Details Obtained From the Annual Report of Fincare Small Finance Bank
According to the Fincare Small Finance Bank’s annual report, the bank’s total deposits in call and short money were Rs. 1,912 crores as of March 31, 2021. This represents a 6.3% increase from the previous year. Additionally, the bank has invested Rs. 842 crores in government and other approved securities as part of its call and short money portfolio.
Risk Factors Associated With Call and Short Money
While call and short money investments are typically considered low-risk, they do come with some risk factors that investors should be aware of. For example, these investments may be subject to interest rate risk, liquidity risk, and credit risk. Additionally, there is always the risk that the underlying security may default on its payments.
- What is the difference between call money and short money?
- What are the risks associated with call and short money investments?
- How can investors benefit from call and short money investments?
- What is the return on call and short money investments?
- What are some of the major players in the call and short money market?
- What is the minimum investment amount for call and short money investments?
- What are the tax implications of call and short money investments?
- What are the liquidity risks associated with call and short money investments?
- What are the most popular types of call and short money investments?
- What are the benefits of investing in call and short money?