Where can you buy money funds?

If you are looking to earn a good level of profit, then it is a good idea to consider investing in money market funds. It may sound very complicated especially if you’ve never tried it yet. The truth is that it only takes a little familiarization and you can consider yourself a pro.

For those who don’t know yet, a money market fund is a group of investment scheme which is typically short-term but with an assurance of good return. It is like buying and selling securities among different institutions and in return, a certain amount of cash is paid out for the loan made.

When you have decided to buy a money market fund then you have these four options:

  1. The Prime market fund from JP Morgan. As an identity, the company is assigned the symbol VMVXX. In terms of its assets, it is currently valued at an astonishing $31 billion. Thinking of dealing in the money market with JP Morgan? With just $1,000 as the minimum investment, it is now possible to invest!
  2. The symbol FDRXX is used by the Fidelity Cash Fund. The minimum investment in the company is higher than JP Morgan’s – $2,500. The total asset of the company is at $122 billion and with an expected return of 2.65%. Some investors purchase the fund online because the firm charges lower transaction fees this way.
  3. Another option in the list is the Schwab Value Advantage Fund. As of the half quarter of 2010, the company has collected an asset of $18 billion. When the company was just starting, investors were required to have $25,000 as an minimum investment with a minimum balance of $20,000. Today, however, the minimum capital is so much lesser but you’ll need to inquire with one of their branches.
  4. Since 1975, Vanguard Prime Money is already in operation. From its inception, it has gained $106 billion as of July 2010. The average return is slightly higher than the others at 2.68%.

But a figure alone is not the only way to determine whether the company is the right one for you.  If you can do a little more researching and comparing, then this will be to your advantage. It will also help if you make sample calculations so you can have a better idea on how much you will be yielding. It will be a great idea seeking the guidance of people who have already tried it and know all the roundabouts of the business. A huge amount of money is involved in here, so be very careful. While you can have a lot of information online, it would still be best to visit your bank personally.

Leave a Reply

*

1 YEAR
CERTIFICATE OF DEPOSIT

Account Type:

Select Amount:

Select term:

ONLINE SAVINGS ACCOUNT

  • No minimum balance
  • Competitive rates, No risk

MONEY MARKET ACCOUNT

  • High rates, Access to money
  • FDIC Insured