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:
- 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!
- 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.
- 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.
- 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.