Bruce Bent II’s Contribution in the Money Market

What are money market funds?

A money market fund is an investment that lets the investor take part in a money market investment run by professionals to achieve the goals set by the fund. Also referred to as money fund.

Money market funds provide an avenue for investors willing to invest in the money market. However, this fund only invests in interim fixed income securities like the US Treasury bonds and commercial papers. In most cases, their safety compares to that of bank deposits, although they have a higher yield.

In America, the Investment Company Act of 1940 regulates the fund.

Who should have a money market fund?

Since the fund has lower long-term earnings than stocks, they are ideal for old investors in need of safety rather than growth.

There are three instances when money market mutual funds are a suitable investment;

– When an investor in not prepared to invest or is expecting an item of expenditure that is not for investment purposes, he can invest in the money market fund to benefit from the safety and liquidity associated with it.

– In some occasions, an investor with several mutual funds from the same fund company may need to move assets to different funds. In case there is a need to sell before identifying the fund to buy, an investor may invest the proceeds of the sale in the money market mutual fund present in the fund company.

– Brokerage firms put their clients’ funds in the money market mutual funds to offer cash management services. The customers can earn from their dormant cash.

About Bruce Bent II

Bruce Bent II is an investor and financial expert from America. In 1971, his father  started the Reserve Fund, which is the first money market fund. Bruce Bent II is in charge of money management and retirement business opportunities.

Bent II attended Northeastern University and recieved a Bachelor of Science in Philosophy. He has been working at Double Rock Corporations since 1991 as the CEO, vice chairman, and president. Bent II uses his experience in the banking and financial sector, and cash management in providing consultation and advice to startups or investors seeking growth.

For more information on Bruce Bent II follow him on Twitter.