| They may not be glamorous or bring | | | | are usually funds that purchase |
| extreme returns. But then, they aren't | | | | short-term debt from tax-free |
| meant to. Recently, money market mutual | | | | organizations, like state or local |
| funds have found their way into a broad | | | | government. While their yield is usually |
| variety of investor's portfolios as | | | | lower, you have the potential of saving |
| their returns have increased and their | | | | the difference in taxes. |
| attractive reliability has continued. | | | | Many money market mutual funds also |
| Between June 2004 and September 2005, | | | | offer an advantage if you're invested in |
| money market yields increased from over | | | | several other types of mutual funds |
| a half a percent, to 2.89 percent, | | | | within the same fund company. A money |
| according to an Associated Press story | | | | market mutual fund can act as temporary |
| in early-September 2005.1 A rather large | | | | storage if you sell off assets in a |
| jump to say the least. | | | | mutual fund and wish to keep them in the |
| Serving as a temporary investment | | | | fund company before investing in another |
| vehicle for those not ready to invest, | | | | fund. In comparison to other options, |
| money market funds are generally a | | | | this is a relatively easy way to |
| short-term savings tool that, in | | | | transfer money between funds and still |
| comparison to many investments, is | | | | potentially benefit while you choose |
| considered safer and more reliable. | | | | your next mutual fund investment. |
| Using the advantages of a mutual fund, a | | | | Money market mutual funds can serve a |
| money market version typically invests | | | | variety of investors but can be most |
| in a variety of things including CDs, | | | | attractive to smaller investors. Many |
| U.S. Treasury securities and | | | | have easier withdrawal features |
| debt-obligations. By investing in a | | | | including check writing or wire transfer |
| money market mutual fund, you're also | | | | if you choose to close or move money |
| benefiting from a possibility of higher | | | | from an account. Always consult with a |
| returns than those available from | | | | financial professional before deciding |
| individual investment in a CD or money | | | | what investment moves to make. They may |
| market account. | | | | be able to guide you to a better option. |
| An investment in a money market mutual | | | | Investing in a money market mutual fund |
| fund is not insured or guaranteed by the | | | | is meant for an investor with a specific |
| Federal Deposit Insurance Corporation | | | | set of circumstances and objectives. |
| (FDIC) or any other government agency. | | | | They certainly aren't glamorous, and |
| Although money market funds seek to | | | | they won't help you retire in style any |
| preserve the value of your investment at | | | | time soon. But they may be able to offer |
| $1.00 per share, it is possible to lose | | | | you tax savings, which is always |
| money by investing in these funds. | | | | attractive. |
| Tax savings are another potential plus. | | | | 1 Meg Richards, "Money-Market Mutual |
| You may be able to take advantage of a | | | | Funds Surge," Associated Press, |
| tax-free money market mutual fund. These | | | | September 4, 2005. |