For many investors, low risk reinvesting is a the most desired form of gaining extra capital. Money market funds have recently become more popular and ideal for new investors and experts alike. Money funds are smaller in comparison to other types of investments and are generally easier to manage for beginners. For those who are unaware, a money market fund is a small form of mutual funds. When investing in money market funds, individuals purchase debt securities such as unsecured promissory notes and US Treasury Bills. These funds are regulated under the Investment Company Act of 1940.
According to Wikipedia, money funds are available in a variety of forms. Each type of money market fund generally offers a different sizeable return. One of the most common market money funds are called Prime Money Funds by professionals. This particular type of fund often refers to floating rate debt and commercial paper of corporations and the US government agencies.
Retail Money Funds are also very popular among investors. These funds constitute for over 30% of all money funds and are generally geared toward individual ownership. The policies and procedures are designed to limit shareholders to one primary person.
In America, over a trillion dollars are invested in money market funds collectively. With Prime funds topping well over 1.4 trillion dollars alone, this ideal investing style often attracts investors looking to yield a higher return without micro managing their portfolio.
Bruce Bent II is a financial investor and expert who works in the financial and retirement industry. He has vast knowledge of financial aspects including money market funds.Bruce II is highly regarded in the financial world. He currently is the President and Chairman at Double Rock Corporation where they help banks, retail marketers and broker-dealers find qualified plans and innovative solutions.
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