I need to park my funds in highly liquid debt which I can pledge and use for option selling.
The reason for liquidity is I want to utilize these funds to take opportunity whenever I find stocks at good value.
High ROI is not a motive here but safety is since I plan to invest huge chunk of my capital in them and use it only and only when the opportunity in equity arises.
I’ve done some of my own research in short term safe instruments, but since I’ve never dealt with them before so would like to understand the nuances from experts and experienced folks.
I came across- Liquidbees, money market funds, liquid ETFs etc but don’t have deep understanding in any of these instruments and I’m unable to grasp the associated risk and nuances. Money market fund is a bit confusing for me since there are so many of them, also what is overnight? How do I know which ones can be pledged? How do I find them on kite since coin requires me to transfer via bank. Is too much diversification amongst various money market fund more prudent way of parking fund or should I just go for any two funds.