3 popular money market funds you can invest in 2018

3 popular money market funds you can invest in 2018

Money market funds are a type of mutual funds that yield fixed income from investments in high-quality short-term debt. The stock market can be volatile and unpredictable at times making investing in a risky venture. However, money market funds are among the safer investments you can make to secure your financial future.

Money market funds offer a low risk and low yield portfolio that makes it a popular choice for investment in cash equivalent assets. The investments are not an alternative to employer-sponsored savings and retirement plans. Instead, investing in some of the best money market funds can yield additional income to supplement your retirement savings.

Let us understand a few pros and cons of investing in some of the best money market funds.

Pros

  • These funds are a safe investment with low risk and steady returns
  • Money market funds invest in securities and assets that have high liquidity

Cons

  • Inflation can harm the purchasing power of a potential investor owing to a low yield
  • The annual fees and other expenses can cut into your profit margin significantly
  • Even some of the best money market funds are not insured by the government
  • Alternatives in stock and securities will always have a higher rate of return in comparison

The profits from even the best money market funds accounts may not be significant. However, you can consider the following options in case you are looking for a safe and steady return on your investment.

Here is a list of some of the best money market funds and investment companies

Vanguard
Invest in low-cost money market funds with Vanguard. The company offers money market mutual funds that protect your cash from market risk. You enjoy a steady flow of income that can be further utilized for reinvesting into stocks and bonds. The account also allows easy access to cash and lets you transfer money from your bank account to your portfolio. Vanguard offers both taxable and tax-exempt options for some of the best money market mutual funds. You have the liberty to create your own portfolio in the Federal, Prime, and Treasury money market. Tax-exempt markets include the California Municipal, New Jersey Municipal, New York Municipal, and Pennsylvania Municipal. All markets favor an expense ratio in the range of 0.09% to 0.16% accordingly.

Charles Schwab
One of the well-known investment management companies in the market, Charles Schwab offers some of the best money market funds in the government, prime, and municipal sectors. There are many perks of investing with Charles Schwab as the fund provides stability of capital, better liquidity, and income avenues for your investment. Securities in the prime market for invest mainly include those issued by the U.S and foreign corporations, financial institutions, and the government. Government and Treasury options include investments in short-term government debt securities. The municipal money market fund includes options for investing in short-term municipal securities issued by the state, government, and municipal agencies.

American Century
The investment management company offers five popular prospects for investment. Popular low-risk short-term funds include the California Tax-free Money Market Fund, Capital Preservation fund, Prime Money Market Fund, Tax-Free Money Market Fund, and U.S. Government Money Market Fund. The yield on the money market funds ranges from 0.61% to 1.66% on an average. The yield is the estimated income over a period of 7 days and 30 days alternatively. Note that the return on investment and the value will fluctuate periodically. American Century will consolidate your total investment to provide the best possible yield over a favorable income to expense ratio.

It is advisable to find investment agencies and companies that are insured by the FDIC to safeguard your investment. No matter how secure your mutual fund portfolio is, you must be prepared to handle a potential loss due to fluctuations in market rates.

You can always contact a financial advisor or consult with the customer executives at the company to find which mutual fund serves your purpose for investing in the short term.

Recent Questions

Q1.

Do Auto Insurance Companies Check Driving History?

Answer

An insurance company may check your driving record when you are looking for a new policy, renewing your existing policy or modifying the policy by adding a new driver or additional vehicle. You may also wonder whether your driving record can prevent you from getting insurance. Your driving record check typically will not prevent you from getting co

Q2.

Do Auto Insurance Companies Share The Provided Personal Information?

Answer

When you make an insurance claim or begin the process to switch insurance companies, information about your claims history is placed into a national loss-underwriting database. That information can be accessed by all insurance companies that are considering insuring you. However, insurance companies do not share your personal information directly w

Q3.

Do only breadwinners need life insurance coverage?

Answer

The cost of replacing the services formerly provided by a deceased homemaker can be higher than you think, and insuring against the loss of a homemaker may make more sense than one might think, especially when it comes to cleaning and daycare costs.

Q4.

Do single people without dependents need life insurance?

Answer

Even single persons need at least enough life insurance to cover the costs of personal debts, medical and funeral bills. If you are uninsured, you may leave a legacy of unpaid expenses for your family or executor to deal with. Plus, this can be a good way for low-income singles to leave a legacy to a favorite charity or other cause.

Popular Products