Money Market Fund

"Hello, i am new in mutual fund and what kind of mutual fund should i start invest in?" . The answer "Money market funds". I came across this Q&A few weeks ago and since i am interest to know about money/currency , i decide to dig some information about MOney Market Mutual Fund.

Money market fund is open end mutual fund which the main different compare to other types of mutual fund are its easily liquidity and preserving capital while provide current income. However like others funds, money market funds also have its risks but it is slightly lesser and therefore consider to be one of the safest type of mutual fund. Since the risk is lesser, it also mean that the yielding from this fund are also lower than the rest but it is higher than putting your money in account bank only. The biggest risks involve in money market funds to investors are when the inflation are outpaced the funds return which will lessen the power purchase of the investor money aka money fund.

Money markets funds invest in those which is less than 1 year maturity.

There are two types of money fund :

Insitutional money fund - is a high minimum investment , low expenses share market that market to government ,corporation or fiduciaries.It is set up in a way that money is swept to them overnight. However, this fund is market to government , corporation or fiduciaries, it mean that it is not available to public individually.


Retail money funds - This fund is offer mainly to individual. It hold about 33% of all money market fund assets and invest in short-term debt such as Treasury bills and commercial paper and come in few different way: government only fund, non-government fund and tax free funds.