Both investors and savers should know what money market funds are all about
What are money market funds
Money market funds are actually open-ended mutual funds. There is, however, a significant difference. Money market funds invest in short-term, liquid financial instruments, meaning the investments can quickly be converted to cash and are not supposed to fluctuate widely in value. As such, these funds are considered to be equivalent to cash.
How to invest in money market mutual funds
Many savers as well as investors park their money into these funds. Many brokerage houses put their clients’ funds into them. So, if you have a brokerage account, it is likely your uninvested funds will go there. Many banks also offer money market fund deposits.
Many individuals and businesses hold money market funds, therefore, we believe that all investors and savers should get to know how these funds work, what they invest into, and the risks associated. This is what this section and articles here are all about. The money market information contained on this site is basic financial knowledge with which everyone should be familiar.
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Money market funds are considered to be cash equivalents, but differ from other plain deposits.