What type of risks are associated with investing in money market funds?
A. Money market funds are subject to interest-rate risks in which changes in interest rates can adversely affect the prices of the securities in which the fund invests. Also, although money market funds invest in what are to be considered high-quality short-term debt instruments, there is no guarantee that these securities won’t default or have their credit rating lowered. Credit downgrades or defaults which can affect the fund’s NAV may, in turn, affect the fund’s share price. Money market funds also may be subject to other risks. You should review a copy of the fund’s prospectus for a complete description of the risks associated with investing.
