Money markets funds are short term investments represented by treasury bills and promissory notes. Promissory comments, also known as commercial papers, are short term loans with no guarantee. They are issued to replicate the current market interest rate. Treasury bills are issued by the government at their monetary countenance value and are sold back at maturity. Investors gain interest from the sale difference at maturity and the actual face value purchased.
One reason money market funds are striking to most investors is because they run for a short phase, usually not more than 1 year. This means that the investor can easily recognize the r returns on investment making market funds extremely liquid unlike other kind of investments. Even though they accrue stumpy risk, they offer abridged return on investment.
Any kind of business can invest in the money market funds. Individual investors can invest through a broker. The process involves transferring the amount you wish to invest to the broker and letting him or her handle everything else by the book. Despite all this, the money market funds trade in very elevated denominations. The beauty of it is that they are mainly tax exempt.
Middle sized companies who wish to expand and also grow their profits base should invest in money markets as it provides a good way to administer their cash flow. They can also easily access their finances as money markets are vastly liquid and it also helps them broaden their risks.
Bruce Bent II understands the money market fund, in fact, his father was the inventor of them. He is from New York and graduated from Northeastern Univeristy with a Bachelor’s Degree in Philosophy.
Bent II is the Vice Chairman and President of Double Rock Corporation. He as helped banks, broker-dealers, retail marketers and other financial corporations find creative cash-related solutions with his expertise in the financial industry. His education and family history in finances has helped him become an icon in the financial world.
For more information on Bruce Bent II follow him on Twitter.