A money market fund is a relatively low-risk investment fully focused on short-term debt securities and pays short-term interest rates. The money market fund’s aim is to earn interest for shareholders and also maintain a net asset value of one dollar for every share. Ideally, these funds are used by most investors as an alternative to investing in the stock market. Shares of money market funds can be purchased through banks, mutual funds, and brokerage firms. Depending on the security invested, the income can be taxed, and in other cases, it may be relieved of taxes.
Who should have a Money Market Fund?
Money market funds are perfect for investors who have a limited investment goal in terms of time horizon, plan to diversify with a specific investment or those who expect their share to be extremely liquid. Mutual market funds returns offer stability and can play a vital role in your portfolio. They are regulated by the Securities Exchange Commission and seek to limit exposure to the market, credit, and liquidity risks. Some funds are designed for retail investors and others for institutional investors. One can invest in tax-exempt municipal securities, government securities, or bank and corporate securities.
Bruce Bent II
Bruce Bent II is a US businessman recognized by the financial industry. He has a strong understanding of the ins and outs of the financial sector and money market funds. He grew up in the financial world and followed his father into the business. Bent II is a graduate of Northeastern University where he recieved his Bachelor’s Degree.
Currently, Mr. Bent II is the Vice-Chairman a financial technology company- Double Rock Corporation. He is the senior executive of the affiliates and each subsidiary owned by the financial company. Mr. Bent II’s skills and leadership has been highly regarded in his area of expertise. His innovative financial solutions have helped so many companies find real solutions to financial issues.
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