Money Market Funds
A money market fund is an open-ended mutual fund, which invests in short-term debt securities like commercial paper and US Treasury bills. These funds are regarded as being safe just like bank deposits, but they offer a high yield. In the United States, the Securities and Exchange Commission (SEC) is in charge of regulating money market funds under the Investment Company Act 1940. Money market mutual funds play a pivotal role in providing liquidity, especially to financial intermediaries. Money market funds limit exposure to losses because of liquidity, credit, and market risks. These funds seeks to purchase the highest rated debt that matures in less than 13 months.
Money market funds focus on maintaining a steady value of $1 per share unlike most financial instruments. Additionally, money market funds are able to pay investors’ high dividends. The securities that money market funds can invest in comprise repurchase agreements, commercial paper, and short-term bonds. Money market securities must be of the highest quality and highly liquid.In the United States, money market funds are categorized according to various investment strategies, including Treasury, prime, institutional and retail. A prime money fund is the kind that invests in floating rate debt, securities, and commercial paper of the US government and its agencies. Treasury Money Funds invests at least 99.5 percent of its entire assets in cash, repurchase agreements, and government securities that are fully collateralized. Institutional money funds are marketed to governments and corporations owing to their low expense share classes and high minimum investment. Retail money funds are offered to individuals given that their fund yields are higher compared to banks savings accounts.
About Bruce Bent II
Bruce Bent II is a great businessman and financial expert who knows all about money market funds. His father was accuately credited for inventing the first money market fund in the world, called Reserve Fund. Through his father and his career experiences he has great knowledge and understanding of these funds. He also helps companies with innovative and created solutions to financial issues.
Bruce Bent II is a result-oriented consultant and chief executive officer. He has the expertise, experience, and resources necessary to make an impact and help organizations through different challenges. Among his key competencies include planning, business development, operations & risk management, outsourcing, risk management, and operational streamlining. Presently, Bruce Bent II serves as the CEO, president, and vice chairman of Double Rock Corporation. He has used his background, knowledge and education to help him become a successful entreprenuer and
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