Why you should invest in money market funds!

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Why You Should Invest in Money Market Funds!
In the wary world of the
market, money market funds
are a popular way to invest
your money in a relatively safe
way usually for short term.
Used by both individuals and
businesses,
money
market
accounts are used as a short-
term cash management tool. For
the most part, money market
funds are designed as a short-
term investment (less than one year); many accounts mature in 30-90
days. There are some money market accounts designed to save money
that is not for immediate use, but not for long-term accounts, such as
retirement accounts. Richard Cayne Meyer can help consult on an
account for your needs.

Stability
It's important to understand
how money market funds
(also
known
as
money
market deposit accounts) are
set up before investing in
one.
These
funds
are
actually securities that have
been backed to keep the
share price at $1 per share.
It's rare that it should dip
below that mark; it's only
happened a handful of times
since the advent of money market funds in the early 1970s. Richard Cayne
mentions one of the advantages of money market funds is that unlike other
financial institutions, the $1-per-share price makes it one of the more stable
funds to invest in. It's often considered a safer way to invest your money
than in stocks and bonds that fluctuate with the market.

Higher Yields
In many cases, these money market
accounts are preferred over setting
up a regular saving account at your
bank
because
money
market
accounts often yield a higher interest
rate. It's certainly dependent on the
type of bank and in some cases, the
amount you invest. Money market
funds which Richard Cayne can help
consult upon may offer several
options for saving money with more
stability and higher yields.
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Liquidity
To refer to a fund's or account's liquidity
means its ability to be bought and sold.
Certain kinds of funds are not easily sold or
traded, perhaps because of the type of account
it is, the terms of the account, or that there
may not be many people who are willing to
invest in a certain type of market. Generally,
Richard Cayne explains money market funds
are designed to limit the exposure to the risks
of narrow liquidity.
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Very Low Fees
Because fund management is not as
complex as it can be for other types of
mutual funds, these funds can charge
lower fees and expenses.
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Daily Valuation
Dividends are credited to your
account daily, which ensures that your
earnings are always up-to-date and
available.
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Lower Minimum Investments
Money market mutual funds generally
offer
lower
initial
investment
minimums than other investments.
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Check Writing
Many money market funds allow
you to write checks against the
balance, although there can be limits
on this privilege.
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Competitive Interest Rates
During a high-interest-rate environment,
money market mutual funds can offer
competitive yields providing returns
higher than bank savings and money
market accounts.
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High Quality, Low Market Risk
Money
market
investments
generally have a high credit
Low
quality, which means that there is
little risk that their issuers will not
be able to repay their debt. Because
Market
of this high quality, they are
considered low-risk investments.
Money market mutual funds pool
Risk
these securities in one investment
vehicle
that
brings
low-risk
opportunities to the everyday
investor.
http://meyerjapan.com/en/richard-cayne