Money market mutual funds are an investment option that can be used to maximize wealth. Unfortunately, money Money market mutual funds still lack prestige with deposits. Deposits themselves are chosen by many people as an investment option because of lucrative returns or interest. If a regular savings account gets <1 percent interest, deposits can provide an interest of around 6 percent or more. On the other hand, you might also go to https://alphabetastock.com if you are willing to learn more things about investments.
What about money Money market mutual funds? Does one of these types of mutual funds offer a return that is less great than deposits? Or just the opposite?
Actually, mutual funds are one of the capital market instruments used to raise funds from the investor community and then are invested by investment managers in securities portfolios. There are several types of mutual funds offered, depending on the portfolio of securities.
The types of mutual funds include money Money market mutual funds, fixed income mutual funds, stock mutual funds, mixed mutual funds, to index mutual funds and ETFs. Then, what is a money market fund? What are the contents of the portfolio of securities?
Money market mutual funds are mutual funds whose composition is 100 percent in the form of short-term effects with minimal risk, ranging from deposits, state bonds, and private bonds. That means the portfolio of securities in this type of mutual fund includes deposits, state bonds, and private.
Mutual fund investments benefit in the form of a difference between the purchase price and the selling price (capital gain) and stock dividends or bond interest. It’s because Money market mutual funds consist of deposits, state bonds, or private bonds as a portfolio of securities, which means the profit or return comes from deposit or bond interest.
Money market mutual funds in a year can provide a return of around 7 percent. The longer you store funds in the form of money Money market mutual funds, the greater the benefits received.
One of the Money market mutual funds sold in the market gives a return of around 7 percent a year. For three years, the return obtained can be around 20 percent. By holding for five years, the return obtained can reach 38 percent.