Short-Term Investment Fund

A short-term investment fund (STIF) is a pooled investment vehicle that primarily invests in short-term, low-risk instruments such as Treasury bills, commercial paper, and certificates of deposit. These funds aim to provide liquidity, capital preservation, and modest returns with minimal risk. STIFs are commonly used by institutional investors, such as pension funds or corporate treasuries, to park cash temporarily while maintaining quick access to their funds.

Example

A corporate treasury department may invest in a short-term investment fund to safely store excess cash for a few months while earning a small return before deploying the capital elsewhere.