The new money market fund of Erste Asset Management (EAM), Erste Money Market, has collected assets worth over 100 million euros in less than two months since its establishment. This is a low-risk money fund intended for individuals and legal entities with a shorter investment horizon.
The fund is designed to invest in highly liquid treasury bills, short-term government bonds, and deposits from commercial banks at currently attractive market interest rates. Although share redemption and yield realization are possible after just one day, funds can also be invested over a longer period, with a recommended investment duration of up to six months.
EAM stated that clients can submit a request to purchase shares in the fund at any bank branch or through their digital platform, while legal entities have access to both mobile and online banking, and they added that the fund does not charge any entry or exit fees regardless of the holding period.
– Erste Money Market has achieved great success at a time when interest rates in the money market are higher than rates on sight deposits, allowing clients to achieve stable returns on their investments even in a short investment period. The reason for this is the simplicity of the product, the absence of an exit fee, and no required holding period to achieve a certain return. Additionally, the fund invests in extremely short-term assets, which means that the price of the fund’s shares should not fluctuate too much. It can be compared to sight savings where funds are available immediately, with the difference that investors in our Erste Money Market participate in the returns offered by European money markets, which are currently not negligible – said Ivana Kunstek, Director of the Fund Management Department at EAM.
