People always look for safety, profit and liquidity when investing their money in any form of venture. While it may be possible to have the three, it is hard to have them together in one investment option. Most investments will give you higher profits while the risk of losing the value is high; others give you good returns but no liquidity. With that in mind, money market fund is one of the investment option that gives you safety for your money and liquidity. It is a low risk investment option that aims at protecting your money from the negative market forces that lower the value of your initial capital.
In summary, money market fund is a form of fixed income fund that usually concentrates on debt securities, which are characterized by their short period of maturity and low credit risks. Mutual funds are highly liquid, implying that an investor is free to cash their money once they are ready to go use it somewhere else. It is also a low risk venture and thus the interest rate is low.
The market fund is thus for those people or investors who are self-accomplished. It’s for those whose main aim is to protect their money and not to grow it within a short period. It is a good option for business people who are looking to store money temporarily before finalizing certain major deals like buying properties. Investors who have zero tolerance for financial market volatility find this option as a good way of investing their money too.
Bruce Bent II is a financial guru who’s expertise has helped banks, broker-dealers, retail marketers and various other financial instituitions. His expertise dates back to his father, who was the founder of money market funds.
Bruce Bent II is a brilliant businessman who understands financial options and market money funds Bruce is also an accomplished financial expert. He graduated with bachelor’s degree in economics from Northeastern. Bruce II is the current Vice Chairman and President of Double Rock Corporation, a corporation that offers solutions in financial management and retirement services.
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