Best Guide to Mutual Funds
Fundamentals of Mutual Funds
Types of Mutual Funds
Investment and Money market
Important Articles
Free Newsletter

Stay updated, sign up for our free newsletter to receive useful tips

Full Name
Email Id

sign up
Money Market Mutual Funds

A money market mutual fund invests only in money market instruments and issues redeemable units to investors. Money market funds are very low risk but the returns are still not guaranteed. Their stability is based on the investments that make up their portfolios and any losses are rare. The funds are invested into some of the safest market instruments. These instruments provide a fixed return with short maturity. Money market funds carry a low risk while still offering high returns if debt securities issued by banks are purchased. This is in comparison to similar low-risk products. The initial investment is low as money market funds have lower requirements than other funds. These leave investment opportunities available to a wider range of investors. Money market funds offer investors a same day settlement similar to money market instruments.

Money market funds are either taxable or tax-free. Returns from a taxable fund are subject to taxation. They mainly invest in a wide range of funds. Tax-free funds are not taxable and are invested in a smaller range of funds. These funds invest in short-term debt obligations issued by federally tax-exempt entities. They usually have lower returns.

More Terms Explained here




White Paper

Suggest an Article

Haven´t found the article you are looking for, please suggest your article. We value all your suggestions and comments.


Home  |  resources  |  Privacy Policy  |  Disclaimer  |  useful sites  |  link to ua  |  Contact Us  |  Copyrights
© Copyright 2008 fundsavvy.com All rights reserved. Read legal policy and privacy policy.