What type of UITF invests in short-term, low-risk securities?

The type of UITF that invests in short-term, low-risk securities is a Money Market Fund. Money Market Funds are specifically designed to provide investors with a low-risk investment option that primarily focuses on short-term debt instruments. These can include treasury bills, commercial paper, and other liquid and easily convertible securities with maturities typically less than a year.

As a result, Money Market Funds tend to offer a more stable value, reducing the risks associated with other types of funds that are invested in equities or longer-term securities, reflecting their objective of preserving capital while providing some income. Investors seeking safety and liquidity generally prefer Money Market Funds, especially in uncertain economic conditions.

In comparison, Equity Funds primarily invest in stocks and are geared towards long-term growth, which comes with higher volatility and risk. Fixed Income Funds concentrate on longer-term bonds and debt instruments, and while these may also carry lower risks than equities, they are not as short-term focused as Money Market Funds. Growth Funds aim for capital appreciation by investing in growth stocks, which are usually higher risk and are not the right choice for those looking for short-term low-risk investments.