Investing Money Market Loan

Investing money market loan market is often overlooked in unprofessional portfolios due to investing heavily in stocks.

Professional portfolio managers, however, do invest in money market funds, representing nearly 23 percent of total fund market.

The money market funds are not FDIC-insured deposits. However, historically, money market funds have low variance of returns, making them the safest of all mutual fund categories.

This is why many (including companies) consider investing them a better inflation cover than keeping money in deposited in accounts with standard bank interest rates.

Unlike bonds, money market funds have low maturity, and a money market fund's price is often stated in terms of its simple or compounded yield.

There are several types of money market funds available, both taxable or tax-exempt funds.

Taxable money market funds invest in securities whose income is exempt from federal income taxes, including Treasury securities.

However, the majority of funds invested in money market funds are in taxable types.

From Investing Money Market Loan page to Forex Guide index

Copyright © 2014-2023 All rights reserved