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For those seeking the security of federal insurance and consistent, if varying, interest rates, a money market account may be an ideal choice, especially for emergency funds. The money market fund ...
A money market fund (also called a money market mutual fund) is an open-end mutual fund that invests in short-term debt securities such as US Treasury bills and commercial paper. [1] Money market funds are managed with the goal of maintaining a highly stable asset value through liquid investments, while paying income to investors in the form of ...
How money market funds work. Money market funds are regulated by the Securities and Exchange Commission, or the SEC, and are required to invest in short-term debt securities, such as certificates ...
3. Money market funds. Not to be mistaken with money market accounts, money market funds invest in safe, short-term loans to the federal government or major corporations. These loans — known as ...
Bruce Roger Bent (born May 25, 1937) is an American businessman credited with inventing the world's first money market fund, the Reserve Fund, with Henry B. R. Brown in 1970. Bent and Brown created an organizational structure by which investors could pool cash to gain access to the market for short-term money obligations.
A money market fund can cause new investors some confusion. Some think they are the same as the similar-sounding money market accounts, which closely resemble savings accounts.However, they’re ...
[2] [5] By the end of that year they had garnered investments of $100 million. The money market fund industry grew by leaps and bounds, becoming an industry that had amassed $3.5 trillion in assets by the time of Brown's death in 2008, with the Reserve Fund alone accounting for $62 billion in assets. [2]
Money market funds come with very low risk, but there have been instances where funds “broke the buck,” meaning their NAV dropped below $1.00, such as during the 2008 financial crisis.