Money Market Basics Douglasville GA

An investment expert is invited to explain to you in detail what money market fund is and how it really work. Read this article and know more.

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JDB Financial LLC
(678) 383-8438
341 Southern Oaks Dr
Dallas, GA
Atlanta Insurance Advisors
404-729-6485
1600 Roberta Drive
Marietta, GA
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404-454-3658
6707 MANCHA STREET
COLLEGE PARK, GA
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770-703-1692
4125 Atlanta Road, SE
Smyrna, GA
Lantern Capital Advisors LLC
(404) 962-4405
400 Galleria Parkway
Atlanta, GA
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(770) 436-1643
4300 Paces Ferry Rd Se
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Rhonda Harris Enterprises
404-591-5133
PO Box 941661
Atlanta, GA
Time Finance
(404) 577-3650
41 Marietta St NW
Atlanta, GA
1st Infinity Tax Services
(404) 880-4667
235 Peachtree St
Atlanta, GA
A-1 Action Cash Inc
(770) 577-2577
6197 Fairburn Rd
Douglasville, GA

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The moment you deposit money into an investment account, it starts to work for you. It doesn't earn interest, as in a typical bank account, but it doesn't just sit there either. Your cash is automatically "swept" into purchases of shares in something called a money market fund (sometimes known simply as a money fund).

Money Market Fund Explained

A money market fund is really a mutual fund. The money fund's manager invests the fund's assets in short-term bonds, providing a fairly safe and predictable return. Note that we said "fairly safe" - as with any investment, a money market is never completely risk-free, though they do come pretty close, since government bonds are the usual investment vehicle of choice for money market funds. Money market funds have failed in the past, though it's quite rare for that to occur.

How Money Markets Work

The price of a single share of a money market fund is always constant at $1.00 a share. How then, you might ask, can you make money by investing in a money market? Because the money market invests in bonds, those bonds do pay a yield, which creates income for the money fund shareholders. That income is computed daily as dividends; those dividends are credited to your account on a monthly basis. (Most people think of these dividends as "interest," and that's a fair comparison.) These dividends often add up to be a bit more than you get from a typical savings account at your bank, but the effective yield can vary from day to day and month to month.


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Featured Local Company

JDB Financial LLC

6783838438
341 Southern Oaks Dr
Dallas, GA

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