The US money market offers a large number of money market funds that are available at attractive interest rates.
In the following sections to come we may discuss some of the US money market funds.
US Dollar Money Market Fund
The US Dollar Money Market Fund which was introduce in March 2000 is an open ended mutual fund satisfying the needs of those small investors who require a high and secure source of income.
The portfolio of this fund is diversified by investing in a large variety of securities that are dollar denominated and generate fixed income. The securities that they invest in are the government securities, corporate securities or the money market instruments.
Price of US Money Market Fund
The prices of the US money market funds that are traded in the US money market require an initial investment of $100. The investments that follow after that can be made at a minimum price of US $20. The investors have the liberty of accessing their funds any time and any amount of withdrawal is permissible.
Rate of income of the US Money Market Fund
The Corporations Investment Department quotes an estimated yield at the end of each month. This quote represents the minimum that the fund is expected to earn in the reference period. The investor receives the higher rate in case the portfolio earns a return higher than the quoted rate. There is no certainty that the quoted rate will be materialized and the rate can also vary from time to time.
The Weiss Fund
The Weiss Fund is another US money market fund. The portfolio manager keeps track of the strengths and weaknesses of the US money market in deciding on the money market instruments that should comprise the funds.
The US money market securities i n which the investments are made are the following:
• US Treasury Securities: The different US Treasury Securities differ from each other on the parameters like interest rates maturities and the dates of issuance. The treasury bills have maturity periods of less than one year, the treasury notes have an initial maturity of one to ten years whereas the treasury bonds have an initial maturity of greater than ten years. The principle and the interest is guaranteed by the government.
• Repurchase agreements: The fund that enters into the repurchase agreement sells the securities and agrees to repurchase them at a pre defined date which is within seven days of purchase.
• Other Mutual Funds : The Weiss Fund also invests in mutual funds that invest in the US Treasury Securities.
For more details on the US money market site to be viewed are cnn.com, globefund.com, studentinvestmentgame.net etc