Occasionally, a money market fund may fall below the $1 NAV. This creates a condition that is sometimes referred to with the colloquial term "breaking the buck." When this condition occurs, it may be attributed to temporary price fluctuations in the money markets. However, if it persists, t...
Government bonds provide both benefits and disadvantages to the bondholder. These debt securities tend to return a steady stream of interest income. However, this return is usually lower than other products on the market due to the low level of risk. ...
Building an investment portfolio may require personalization and finesse, but it can also be ultra-simple.
If a company, bank or government has enough assets to meet their financial commitments, then they’re liquid—or they’re good for it. When it comes to money market funds, that means the investments inside of a money market fund can be quickly turned into easily accessible cash. Money mark...
When you and other shareholders pool your money in a prime money market fund, the fund's managers use the collective balance to purchase short-term securities. Because prime money market funds look for quality, they typically hold a high percentage of highly rated government bonds and a very ...
Under the SEC’s rules, non-government money market funds are required to impose a discretionary liquidity fee (not to exceed 2% of the value of the shares redeemed) if the fund’s board (or its delegate) determines that a fee is in the fund’s best interests. The SEC’s rules require...
Money market and other mutual funds traditionally havenotbeen insured by the federal government, unlike money market deposit accounts. In response to the events of September 2008, however, the US Treasury Department announced a temporary guarantee program for US market funds. Before investing in a ...
What is the fund that pools money from small savers to purchase short-term government and corporate securities? What are the major types of securities in the money market? What are the firm's short-run profits? What is the largest source of short...
Inside ETFs are securities, and holders of ETF shares essentially own a piece of those securities—stocks, bonds, or commodities, for example. When an ETF is created or redeemed, the value of the underlying holdings determines the fund’s net asset value (NAV). Each day, ETF issuers ...
Aig Government Money Mutual Fund Annual Yield Analysis Aig Government's Yield generally refers to the amount of cash that is paid back to the owner of a security over a specific time (usually one year). It is expressed as a percentage of current market price, and usually amounts to all ...