What is the fundamental difference?
A money market fund typically invests in short-duration instruments such as deposits and government or high-quality fixed-income securities within its mandate. A special fund can be structured around a wider strategy — for example private debt, multi-asset, fixed income or other approved approaches. The exact mandate matters more than the marketing label.
| Check | Money market fund | Special fund |
|---|---|---|
| Typical objective | Liquidity and short-term income | Strategy-specific return objective |
| Access | Often relatively liquid, subject to fund terms | Can include notice periods, lock-ins or less frequent dealing |
| Underlying assets | Primarily money-market / short-duration instruments | Depends on the approved mandate |
| Return figure | Often a current annualised yield | May be historical, target, annualised or period-specific — read the label |
| Comparison priority | Yield, fees, liquidity, minimum, source date | Strategy, downside risk, liquidity, fees, valuation and return period |
Why a 15% figure and a 10% figure may not be comparable
One figure may be an annualised current yield while another may describe a past calendar-year return, a trailing period or a target. Before ranking anything, ask: 15% of what, measured over which period, before or after which fees, and with what access to my money?
Liquidity can be the hidden cost
An investment can show a stronger past return but still be unsuitable for money you may need quickly. Read redemption notice periods, dealing days, lock-ins, early-exit terms and settlement timing. AMKA therefore keeps Special Funds separate from the main MMF comparison.
Regulated does not mean guaranteed
CMA approval or regulation is an important legitimacy check, but it does not turn an investment into a guaranteed return or remove market, credit, liquidity or strategy risk. “Verified” on AMKA means we checked the stated source and date — not that AMKA guarantees or recommends the product.
A five-question comparison
- What exactly does the fund invest in?
- How quickly can I redeem, and are there restrictions?
- Is the displayed return current yield, historical performance or a target?
- What fees and taxes affect the investor outcome?
- What could cause me to lose money or receive less than expected?
For a deeper due-diligence checklist, read 7 checks before investing in a Special Fund.
Primary source
Educational information only, not personalised financial advice. Past performance is not a guarantee of future returns. Verify current fund documents, provider terms and regulator information before acting.