What it is
A short term fund is a Unit Investment Trust Fund (UITF) or other pooled fund which invests in money market instruments and fixed-income securities (such as bonds) with an average duration of 1 year.
To see the fund’s specific assets, take a look at its prospectus and Key Information and Investment Disclosure Statement (KIIDS). Remember that such holdings are likely to change as time passes.
What it means for you
Because they have bonds, short term funds match a Moderate risk profile. They can also be invested in by people with an Aggressive profile.
Such funds are suitable for investors who want both liquidity and the potential for slightly better returns than regular time deposits.