 Short-sum investments represent temporary storage of funds that are not necessarily used by a firm in its routine business operations. If a substantial part of a company's working capital is invested or placed in long-term portfolios, then it is much desirable to handle such portfolio separately from the portfolio of working capital items. Short-sum working capital generally consists of short-sum portfolio investments that are highly liquid, less risky, and shorter in maturity than other types of investments. These types of short-term investments generally include government securities, short-term bank acceptances, and other such types of corporate obligations. So what are the short-term investment instruments? In fact, these short-term investments instruments vary in amount of investment from one firm to another subject to certain conditions like firm's risk tolerance level and the need frequency of the firm of such funds by the firms. So now how to compute yields on short-term investments instruments? Like tables are issued at a discount but payable at their face value back at the time of their maturity. So there emerges a concept of discount interest on these tables as a yield. Now this discount interest is basically the difference between their face value and their purchase price. There are two types of rates that are quoted on such type of instruments. The first is the nominal interest rate. This nominal interest rate is based on the face value of the instrument. The second is the yield return and that return is basically earned on an investment while holding this investment till its maturity. To analyze the return on these investments, this yield needs to be analyzed. So there are three types of yields we can determine in these types of instruments like yield on money market which is basically the discount interest divided by the purchase price and this return is then analyzed by dividing the 360 days over the maturity period of the security. Then we have yield bond equivalent. This is computed by dividing the discount interest over the purchase price and then we need to analyze it. In the similar fashion, we can also compute the yield on discount basis to understand these yields. We have an example like for 91 days 100,000 US dollar t-bills sold at a discount rate of 7.91% we need to compute money market and bond equivalent yield. Now to determine these yields, first we need to determine the purchase price that we determine which is 0.98 million net of the interest. The yield on these money market instrument is 8.07% and if we use this data to determine the yield as bond equivalent, it comes to 8.18%. So we can compare these yields with reference to the taste of the investor. What type of investments risk an investor can face? There are several type of risks that an investor can face like credit or default risk may market or interest rate risk, liquidity risk and foreign exchange risk. The risk attributes of these type of risk are basically the conditions that contribute towards the given type of risk. So how a safety measure can be adopted by the investor against these risks? The steps, the security measures are the steps that investors may take to prevent losses from the risk. They may avoid the risk or they may shift the risk to someone other. The possibility of shorter maturities to ensure our securities picker maturity allows investors to shift funds to a safer type of investment. There are certain types of short-term investment strategies like passive strategy. This type of strategy that is characterized by one or two decisions, two decision rules for making daily maturities, daily investment. So there is no long list of decisions involved in this type of investment strategy. This type of investment strategy needs less aggressive than active strategy. It places top priority on safety and liquidity of the investment. There are possibility of reaping good returns if we have a reliable cash forecast. And if we combine active matching strategy, then we can have the chances of enhancing on working portfolio yield without taking substantially the greater amount of risk. But the requirements of these passive strategies are too regularly monitoring of the yield end. The investment yield to be benchmarked against some set criteria like the T-bills rate. The second type of investment strategy is the active strategy. This active strategy requires daily and constant monitoring because there is a wider choice of investments involved with the investment portfolio. It calls for more shopping, better forecast and a more flexible investment policy by the investor. Here we can have further three types of strategies to manage active strategy group. The first is the matching strategy. It is the most conservative type of strategy. There where we matches the timings of the cash flows with the investment maturities. The second we have mismatching strategy. It is riskier and it needs much accurate and reliable forecast. Last we have the laddering strategy that entails scheduling maturities on a systematic basis within the investment portfolio such that the investments are spread evenly on the terms of the ladder. So how we can evaluate short-term fund management strategies. The first we can use the tool of spreadsheet in order to compare effective yields and borrowing cost on the ongoing basis and to generate periodic performance tables or reports as well. Then investment returns should be expressed as bond equivalent yield so that we can have some comparable data for investment evaluation process. This helps to make many investment alternatives comparable. The overall market portfolio return should be weighted according to the currency size of the investment. This means that the overall portfolio return should be weighted in line with the portfolio investment that carries the amount they are in.