What are money market mutual funds?
What is a money market mutual fund? These types of mutual funds are not very complicated to understand, but you need to first know what a mutual fund is in order to understand. What is a mutual fund? This is generally how it works: a bunch of people decided they want to invest their money without having to choose their own stocks and while still getting a diversified portfolio. They take their investment, any a varying amount from thousand dollars to $10,000. It could be anything that they have that they want to invest. They pool their money together. Then, the fund manager takes the money that they have pulled together and invest for the. They buy a mix of stocks, bonds, and/or other investment types. Some may be all stocks, some may be all bonds, some maybe any kind of mix. The benefit is that you don’t have to choose the investment but you can still get excellent diversification and hopefully an excellent return. How are money market mutual funds different? A money market mutual fun
Related Questions
- What are the major similarities and differences among money market mutual funds and bond and/or equity (stock) mutual funds?
- How much money currently is held in bond mutual funds compared to stock, money market, and hybrid mutual funds?
- Why are only 2a-7 money market mutual funds eligible to sell assets to the PSPVs?
