Government money market funds invest at least 99.5% of their funds in government-backed securities, making them extremely safe investments.Prime money market funds are typically invested in short-term corporate and bank debt securities.Money market funds can be categorized into three groups: prime, government and tax-free.
This makes a money market fund much less risky than mutual funds that buy stocks or even longer-term bonds. As its name suggests, a money market fund is a type of mutual fund, which invests its shareholders’ money in short-term, high-quality debt. Money market mutual funds were first developed in the 1970s before bank money market accounts came on the scene, as an alternative to low-yielding savings accounts. That means you can easily and quickly move cash in and out of a money market fund without fees or penalties. A money market mutual fund-often referred to as a money market fund-is a low-risk investment vehicle that provides both a modest return on your money and a high degree of liquidity.
0 kommentar(er)
