A money market fund is a mutual fund style of investing. Operators of money market funds invest in short-term debt instruments, such as commercial paper, treasury bills, banker’s agreements, repurchase agreements, and short-term bonds, for periods of no longer than thirteen months generally. The best money market funds are intriguing to many corporate and individual investors for a variety of reasons. One point of attraction to the best money market funds is their veritable low to no risk. As with any investment, there is always risk, however, since 1994, only one money market fund has breached beneath a one dollar per share net asset value as of 2008. Clearly, the best money market funds offer a stable, albeit not federally backed, environment for investors to place their money.
Are you an investor interested in the security and safety of the best money market funds? Contact a Money Market Funds Advisor to consider your potential investment growth options today!
Corporations frequently sweep money into money market funds from their daily income and operating revenues until further allocating these funds. Those trying to hedge virtually all losses in their funds appreciate the stable, consistent rate of return on the best money market funds investments. For individual investors, the low risks associated with money market funds are great. In addition, the predictable rate of return consistent with other short-term investment interest rates is important to many investors.
Typical financial instruments potentially comprising the best money market funds include:
- Commercial paper
- Certificates of deposits
- Treasury bills
- Other forms of government securities
- Banker’s agreements
- Repurchase agreements
As of 2008, the best money market funds yield close to three and a three-fourths percent. For many persons, this reasonable yield is acceptable considering the extremely low-risk nature of the investment. Overall, however, only speaking to a certified financial planner is an acceptable form of deciding to invest in the best money market funds.
Are you an investor interested in the security and safety of the best money market funds? Contact a Money Market Funds Advisor to consider your potential investment growth options today!
Best Money Market Funds
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