What Is a High Yield Money Market?
A high yield money market is a money market mutual fund which promises a high rate of return. Such funds are designed to balance the desire for conservative investment with the need to generate a high rate of return to make investments appealing. Not all companies which offer money market mutual funds, also known as money markets, have high yield options. People can get information about the available options from a staffer or official publication. Money market mutual funds involve pooling the investments of numerous investors, including both individuals and institutions, to buy low risk securities. The return on investment is relatively low, requiring people to invest in high volume to get a good return, but the tradeoff is that a money market mutual fund is designed to be very safe. People should not, in other words, lose the funds they have invested in a money market; very few money markets have “broken the buck,” as is said in the United States.
