Money market fund is a way of investing in debt securities. It gets characterized by short-term securities and minimal credit risk. It can also be defined as an investment through which an investor earns interest while keeping the net asset value. It is a short-term investment, usually less than a year. It also represents high quality securities, liquid debt, and monetary instruments. Investors interested in this line of investment conduct their purchases through mutual funds, banks, and brokerage firms.
Money Market Funds serve to provide investors with secure places to invest cash equivalent assets. The income brought forth by this type of investment is tax exempted or taxed depending on the type of securities used. However, it’s a small return investment and not advisable for long term goals as the monetary appreciation of money is not felt.
It is not an income generating avenue as considered to other types of fixed income funds or bonds, but the Money
Market Funds is suitable for customers with:
• Short-term investment goals.
• Investors who have little tolerance for market volatility. Particularly those in search of a conservative investment.
• It’s also suitable for clients interested in liquid investments.
Additionally, businesspeople can use this avenue of investment to offset the volatility of bonds and equity investments.The Money Market Fund had, however, not being used until 1971 when it was founded. Bruce Bent II has a great understanding of the inner works of these funds. Bent II has been part of the financial world his whole lfie.
Bruce Bent II graduated from Northeastern University with his Bachelor’s degree. Soon after he start his career. He has helped many compnaies with innovative cash-related solutions and qualifed plans.He was the senior VP of Hallmark Investments. He currently is on the board of Double Rock Corporation where he is vice chairman and president.
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