Why invest in a money market fund?
The reasons for investing in a money market fund are as varied as investors themselves. But typically investors choose money market funds as: • A solution for short-term goals Stocks are a poor choice for short-term financial needs because stock prices and performance fluctuate daily. The price stability and liquidity offered by money market funds help ensure that your money will be available when you need it. And unlike bank savings accounts, the returns provided by most money market funds tend to stay ahead of inflation. • A “parking place” for investor capital During periods of stock market weakness, some investors choose to “park” their investment dollars in the “safe harbor” offered by money market funds. When stock market conditions improve, investors can easily access money market fund assets and reinvest those dollars in the equity markets. • A part of an overall investment plan Many investors prefer to invest in the higher yields that money market funds provide versus bank sav
