Certificate of Deposit Fund

A Certificate of Deposit Fund is a mutual fund or ETF that invests primarily in certificates of deposit issued by banks and financial institutions. These funds offer a relatively stable and predictable income stream with low credit risk, as CDs are typically insured up to certain limits. With fixed maturities ranging from a few months to several years, CD Funds provide investors with capital preservation and moderate yields, making them suitable for conservative investors seeking safety and steady returns.

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