Treasury Money Market Funds
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Treasury money market funds invest entirely on short term cash equivalent items and provides a variable interest rates, which are regulated normally on weekly basis. Treasury money market funds also maintain the liquidity and stability of the principal amount.
Some of the leading financial establishments providing treasury money market funds are:
Capital One U.S. Treasury Money Market Fund, Gabelli U.S. Treasury Money Market Fund,Vanguard Treasury Money Market Fund
Prominent features
Some of the common features of all the treasury money market funds are as follows:
- Stability: All the treasury money market funds try to maintain the liquidity and stability of the principal amount.
- Strategy: All the treasury money market funds invests specifically on short-term cash equivalent items.
- Volatility: Treasury money market share price volatility should be low
Strategies
Financial establishments take on some investment strategies for the easy going of treasury money market funds. These are :
Strategies regarding maintaining and establishing higher liquidity and stability of treasury money market funds. Strategies are also taken for minimizing the risk ratios.
Risks
Risks involved in treasury money market funds are associated with the investment rates. There is a high chance of declination of the fund’s investment value due to an decline in interest rates.
Objectives of different leading treasury money market funds
The basic feature of U.S. Treasury money market funds is high current income, in accordance with the consistent principal and liquidity and the basic objective of Gabelli U.S. treasury money market fund is to provide high current income and this should not be changed without the consent of the shareholder. On the other hand the Vanguard treasury money market funds provide the present income while maintaining the stable share price of $1.
Advice to the investors as recommended by the economists
Investors, should opt for the treasury money market funds which are endorsed by the government. They should also consider of the stability, liquidity and interest of the share price, before going for treasury money market funds.
