Wealth Management Cork
Wealth management generates a better return for you than leaving money in the bank.
Some people have heard that investment in the stock market generates greater returns than leaving their money in a savings account. But there are costs associated with investing in the stock market, such as brokerage fees, commissions, taxes, transaction costs and risks. This means it is not as good of a deal as people think. However, the primary advantage of money in the stock market is that you own shares of a publicly traded company.
What is a money market fund?
The first thing you need to know about money market funds is that they are different from bank savings accounts. Money market funds are mutual funds that track the performance of a group of short term money market instruments. These instruments are considered to be risk-free. It is not as risky as some of the instruments that the US Federal Reserve Banks may offer as a safety net.
What are the benefits of investing in money market funds?
Money market funds are used as a source of funding for short-term loans. These short-term loans are meant to cover immediate cash-flow needs, such as payroll and payments for utilities.
How are money market funds created?
Money market funds are created by the money market fund mutual fund companies. Money market funds are also known as short-term money market instruments. These are issued by the US Federal Reserve Banks and come in the form of two-week, three-week and six-month Treasury bills.
What is the advantage of a money market fund?
If you have an immediate need for short-term money, these funds are a great source of quick funds. It is free from the hassles of waiting for interest to be paid and the brokerage and other fees that go with investing.
What are some money market fund types?
Money market funds can be classified into three types according to their maturity period. These are two-week money market funds, three-week money market funds, and six-month money market funds. The maturity of these funds depends on the maturity of the instruments that it follows.