Money Market Fund Rates
If you are not familiar with a money market fund then I will explain to you what they are, then we will cover what money market fund rates are and why we keep tabs on them. Lets begin with the definition.
Money Market funds generally are a type of mutual fund which has a net asset value that is almost always equal to $1. These rates or values are kept by investing specifically in short-term securities which are of high integrity. Those that are most common that you might recognize would be certificates of deposit and Treasury bills.
The whole reason for having such a fund is to have the lowest and safest risk involvement possible with you put your money in. However Money market funds are not guaranteed by the government. Obviously the rates would change on these highly liquid investments, and would allow for value to increase, thus allowing you to reap a profit. Usually the term of these are 90 days, and can provide a nice stable income from the point when return is due.
