Top Money Market Funds Offer Safety and Yields, But Carry Some Risk
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Money market funds invest in short-term, liquid securities to preserve capital while providing income. They offer flexibility compared to CDs and currently have attractive yields.
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Top recommended money market funds include Vanguard Federal Money Market Fund, JPMorgan Prime Money Market Fund, and Vanguard Municipal Money Market Fund.
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Money market funds are safer after reforms following 2008, but still carry some risk and are not FDIC insured like bank products.
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Alternatives like SPDR Bloomberg 1-3 Month T-Bill ETF allow trading during the day but have fluctuating NAVs.
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Factors to consider when selecting a money market fund include yields, risk tolerance, minimum investments, and tax implications.
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