| Basis | Capital Market | Money Market |
| Participants | The participants are financial institutions, banks, corporate, foreign investors and retail investors. | The participants are RBI, financial institutions, banks, corporate. |
| Investment outlay | Investment outlay is small. | Investment outlay is large. |
| Duration | It deals in medium term and long term securities | It deals in short term securities |
| Expected return | The investment in capital markets generally yields a higher return | The expected rate of return of the money market is less. |
| Security/Safety | Capital market instruments are risky with respect to returns and principal repayment. | Money market instruments are generally much safer with a minimum risk of default |
