| Money market mutual funds are also known as | | | | fund, which are primarily offered to individuals and |
| principal stability investments and they are | | | | they hold about 35% of all money market |
| controlled by the Securities and Exchange | | | | investments. These investments deal with |
| Commission. They operate in such a way that | | | | short-term debts, for example the US treasury |
| they limit losses that are as a result of credit, | | | | bills and commercial paper. They are further |
| market and liquidity instabilities. They have the | | | | sub-divided into government-only, |
| highest rated debt in the United States and they | | | | non-governmental and tax-free investments. their |
| come in the form of government securities and | | | | advantage is that they bring along higher returns |
| purchases agreement, short-term bonds among | | | | than most others. |
| others. | | | | Institutional money investments is another |
| These funds are common with many banks in the | | | | category which is characterized by high minimum |
| United States. The banks normally offer high | | | | investment and low expenses. They are |
| returns compared to other investment companies. | | | | commonly invested in by government |
| They also provide liquidity and primary | | | | corporations and fiduciaries. The largest institutional |
| preservation which then translates to longer | | | | money investment companies include JP Morgan, |
| maturity, lower rated bonds and foreign currency | | | | Black Rock, Western Asset, Columbia, Dreyfus, |
| denominated debt. Longer preservation means | | | | AIM and Evergreen (Wachovia). To make a |
| that the risk involved is much lower. | | | | decision on which one to buy the investments |
| There are many different types of money | | | | from, you are advised to compare their rates of |
| market mutual funds. They include retail money | | | | performance so as to make an informed decision. |