Money Market Funds

Money market accounts are a portion of the capital market where short-term obligations such as Treasury bills, commercial paper and bankers’ acceptances are bought and sold. These short-term obligations have a maturity date of less than 365 days. Because they are obligations they do provide a better return typically, than holding cash in a checking or savings account.

Money market accounts are an excellent option for investors who desire a mid-level return that is close to guaranteed as you can get. Money market rates often are better than other type of liquid accounts. Money market funds are securities that can that offer lower risk with returns that will outpace inflation. Many investors choose to put at least a small portion of their investment portfolio in order to diversify.

Currently, money market accounts are gaining popularity because “The Street” is divided between raging Bulls and raging Bears.

Written by Nagel on May 2nd, 2007 with no comments.
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