The Lowdown on Money Market Funds

Get a quick piece of the action with money market funds.
Magazine Contributor
2 min read

This story appears in the December 2001 issue of Entrepreneur. Subscribe »

There's just no way around it: Most stock funds have had a lousy year. But if there's one thing to learn from the year, it's that short-term investing pays off no matter how stocks are doing.

All equity funds are considered long-term investments by financial professionals and performance trackers. One reason is it usually takes years before a portfolio of stocks registers healthy gains-particularly if it includes load funds with upfront sales charges to work through.

of U.S. stock market investors say the September 11 attacks won't affect the likelihood they'll invest in the future.
SOURCE: The Gallup Organization

Money market mutual funds, on the other hand, are considered short-term investments because they invest their assets in money market instruments-in other words, short-term debt securities that pay interest and have a maturity date. To insure safety, the average maturity on securities held in a money market fund can't exceed 90 days.

That's great news for any fund investor, from the saver to the high-flier, as money market mutual funds make sense for anyone seeking a way to accumulate wealth, a savings spot for their rainy-day fund or a place to park investment profits.

Expect yields on money market funds to far exceed those on savings accounts; investment minimums usually begin at about $250. To learn more, check out www.imoneynet.comand You'll be glad you did-and so will your portfolio.

Dian Vujovich is an author, a syndicated columnist and the publisher of fund investing site

More from Entrepreneur
Our Franchise Advisors will guide you through the entire franchising process, for FREE!
  1. Book a one-on-one session with a Franchise Advisor
  2. Take a survey about your needs & goals
  3. Find your ideal franchise
  4. Learn about that franchise
  5. Meet the franchisor
  6. Receive the best business resources
Save on an annual Entrepreneur Insider membership through 5/8/21. For just $49/yr $39/yr, you’ll enjoy exclusive access to:
  • Premium articles, videos, and webinars
  • An ad-free experience
  • A weekly newsletter
  • Bonus: A FREE 1-year Entrepreneur magazine subscription delivered directly to you
Whether you want to learn something new, be more productive, or make more money, the Entrepreneur Store has something for everyone:
  • Software
  • Gadgets
  • Online Courses
  • Travel Essentials
  • Housewares
  • Fitness & Health Devices
  • And More

Latest on Entrepreneur