Series 6: 5.1.2.4. Money Market Funds

Taken from our Series 6 Top-off Online Guide

5.1.2.4. Money Market Funds

Money market funds are an additional type of mutual fund. (Money market accounts, in contrast, are a type of bank deposit account and will not be addressed here.) Money market funds invest in high-quality, short-term debt instruments (money market securities), such as commercial paper, bankers’ acceptances, Treasury bills, and repurchase agreements. They are nearly as safe and liquid as bank accounts, with a higher yield. Money market funds pay dividends based on prevailing short-term interest rates. They are perfect for investors who require liquidity but would like to earn more interest than if they kept

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