Also known as the money market mutual fund, money market fund are pooled investments aimed at allowing investors to be participants in a diversified portfolio which are usually managed by some professional to attain individual goals. The funds are then invested in money markets investments or otherwise short-term and fixed income securities. Due to this the money market funds are usually considered a safe investment comparable to bank deposits but in otherwise leading to higher profit yield. The United States Treasury bills, commercial paper, and repurchase agreements are examples of some of the short-term investment securities that these funds usually invest in.
As critical and vital providers of liquidity to many financial intermediaries, money market bonds fall under the regulation of the United States in the Investment Company Act of 1940. This Act strictly limits the value, maturity, and range of investments by money market funds under which they are allowed to buy the highest rated debt that goes on to mature in 13 months. These money market funds sole aim is to curb the exposure to the many losses incurred in credit, market and liquidity risks. Money market funds unlike some other financial institutions, its other purpose is to maintain a very stable value amounting to $ 1 for each share, and they eventually pay dividends to their investors
Bruce Bent is a highly respect business professional who has great expertise in financial matters including money market funds. This financial product plays a critical role significantly impact in the financial sector in the US. The product then went on to be recognized by the American Museum of Financial History. His innovative idea became an industry of its own that currently is worth an estimated US$ 3 trillion serving investors numbering to a tune tens of millions.
Bruce Bent II graduated from Northeastern University and went on to start his career in the financial industry. Currently he is the president and vice chairman of Double Rock Corporation where he helps find qualified plans, innovated solutions and retirement plans for business like banks and broker-dealers. His financial techniques have led him to have great success in his career.
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