• About us
    • Who we are
    • Mission
  • Contacts
  • English
    • Português (Portuguese (Portugal))
    • Español (Spanish)
    • Français (French)
  • Login
Investorpolis
[xyz-ips snippet="Banners-Publicitarios"]
  • Home
  • Investing Series Guide
    • All
    • I. Goal Based Investing
    • II. Compounding & Inflation
    • III. Assets Risks & Returns
    • IV. Efficient Diversification
    • IX. Sustainable Investing and ESG
    • V. The Investor
    • VI. Assets and Investments
    • VII. Index Funds
    • VIII. Successful Investing
    • XI. Other Topics
    Choosing Mutual Funds Series: Part 7 – The Largest Fund Management Companies

    Choosing Mutual Funds Series: Part 7 – The Largest Fund Management Companies

    Maximizing the time invested in the stock market instead of choosing the times to invest: Part 3 – The market cycles and the mean reversion

    Maximizing the time invested in the stock market instead of choosing the times to invest: Part 3 – The market cycles and the mean reversion

    Choose P4 Mutual funds series – Evaluate and use the benchmarks and ratings of funds

    Choose P4 Mutual funds series – Evaluate and use the benchmarks and ratings of funds

    Simple Portfolios (DIY) Series Part 3: The traditional 60/40 Portfolio, the pros and cons, and how to execute it

    Simple Portfolios (DIY) Series Part 3: The traditional 60/40 Portfolio, the pros and cons, and how to execute it

    Investing in Secular Stocks Series: Part 4.1 – The 3 Valuation Methods and Fundamental Analysis

    Investing in Secular Stocks Series: Part 4.1 – The 3 Valuation Methods and Fundamental Analysis

    Simple Portfolio Series (DIY) Part 2: The Traditional Portfolio 60/40, what it is, for whom, and its performance

    Simple Portfolio Series (DIY) Part 2: The Traditional Portfolio 60/40, what it is, for whom, and its performance

    Trending Tags

      • I. Goal Based Investing
      • II. Compounding & Inflation
      • III. Assets Risks & Returns
      • IV. Efficient Diversification
      • V. The Investor
      • VI. Assets and Investments
      • VIII. Successful Investing
      • IX. Sustainable Investing and ESG
      • X. Kits and Tips
      • XI. Other Topics
    • Wealth and Investing
      • All
      • Investing
      • Wealth
      Financial Markets Outlook 2024: US and Japanese stocks gains, and 10-year US bond yields below 4%

      Financial Markets Outlook 2024: US and Japanese stocks gains, and 10-year US bond yields below 4%

      Financial Markets Outlook 2024 from the world’s largest investment banks: Disparity in forecasts for U.S. economic growth results in projections for the S&P 500 between 4,500 and 5,000 points, with interest rates on 10-year U.S. bonds below 4%

      Financial Markets Outlook 2024 from the world’s largest investment banks: Disparity in forecasts for U.S. economic growth results in projections for the S&P 500 between 4,500 and 5,000 points, with interest rates on 10-year U.S. bonds below 4%

      Investing in Large, Medium or Small Caps: Part 4 – The Valuation of Equity Capitalization Classes

      Investing in Large, Medium or Small Caps: Part 4 – The Valuation of Equity Capitalization Classes

      Investing in Small, Medium or Large Caps: Part 3 – The market cycles of stocks capitalization segments

      Investing in Small, Medium or Large Caps: Part 3 – The market cycles of stocks capitalization segments

      Investing in Small, Medium or Large Caps: Part 2 – Features and pros and cons of stocks caps segments

      Investing in Small, Medium or Large Caps: Part 2 – Features and pros and cons of stocks caps segments

      Investing in large, mid or small caps: Part 1 – The capitalization classes of stocks and their long-term performance

      Investing in large, mid or small caps: Part 1 – The capitalization classes of stocks and their long-term performance

      Trending Tags

        • Investing
        • Wealth
      • Retirement & Savings
        • All
        • Retirement
        • Savings
        Retirement Series #3: Choice of asset allocation. Part 2 – The allocations preferred by experts and investors

        Retirement Series #3: Choice of asset allocation. Part 2 – The allocations preferred by experts and investors

        Retirement Series #3: Choice of asset allocation. Part 1 – The effect on accumulated capital

        Retirement Series #3: Choice of asset allocation. Part 1 – The effect on accumulated capital

        Retirement Series: How much money do we need to live through retirement?

        Retirement Series: How much money do we need to live through retirement?

        Retirement Series: Part 1 – Overview – A backwards view

        Retirement Series: Part 1 – Overview – A backwards view

        How many years do our public or social pensions last?

        What is the replacement rate of retirement pensions?

        Trending Tags

          • Retirement
          • Savings
        • Tools
          • All
          • Calculators
          • Publications
          • Sites and apps
          Yield curve

          Yield curve

          OECD Composite Leading indicator

          OECD Composite Leading indicator

          The Conference Board index

          The Conference Board index

          Baltic Dry Index

          Baltic Dry Index

          Retail sales

          Retail sales

          ADP Employment Report

          ADP Employment Report

          Trending Tags

          • calculators
          • Calculators
          • Publications
          • Sites and apps
        • More
          • All
          • Best of
          Best Of Mutual Funds Series: Dividend Stocks for Investors Outside the U.S.

          Best Of Mutual Funds Series: Dividend Stocks for Investors Outside the U.S.

          Best Of Mutual Funds Series: Dividend Stocks for U.S. Investors

          Best Of Mutual Funds Series: Dividend Stocks for U.S. Investors

          Best Of Mutual Funds Series: Investment Grade Bonds, Indexed, for Eurozone Investors

          Best Of Mutual Funds Series: Investment Grade Bonds, Indexed, for Eurozone Investors

          Best Of Mutual Funds Series: US Bonds, Indexed, for US Investors

          Best Of Mutual Funds Series: US Bonds, Indexed, for US Investors

          Best Of Mutual Funds Series: Passive, US Large Stocks, for Non-US Investors

          Best Of Mutual Funds Series: Passive, US Large Stocks, for Non-US Investors

          Best Of Mutual Funds Series: Passive Large US Stocks for US Investors

          Best Of Mutual Funds Series: Passive Large US Stocks for US Investors

          Trending Tags

            • Best of
            • Reviews
            • Snapshots
            • Others
          No Result
          View All Result
          • Home
          • Investing Series Guide
            • All
            • I. Goal Based Investing
            • II. Compounding & Inflation
            • III. Assets Risks & Returns
            • IV. Efficient Diversification
            • IX. Sustainable Investing and ESG
            • V. The Investor
            • VI. Assets and Investments
            • VII. Index Funds
            • VIII. Successful Investing
            • XI. Other Topics
            Choosing Mutual Funds Series: Part 7 – The Largest Fund Management Companies

            Choosing Mutual Funds Series: Part 7 – The Largest Fund Management Companies

            Maximizing the time invested in the stock market instead of choosing the times to invest: Part 3 – The market cycles and the mean reversion

            Maximizing the time invested in the stock market instead of choosing the times to invest: Part 3 – The market cycles and the mean reversion

            Choose P4 Mutual funds series – Evaluate and use the benchmarks and ratings of funds

            Choose P4 Mutual funds series – Evaluate and use the benchmarks and ratings of funds

            Simple Portfolios (DIY) Series Part 3: The traditional 60/40 Portfolio, the pros and cons, and how to execute it

            Simple Portfolios (DIY) Series Part 3: The traditional 60/40 Portfolio, the pros and cons, and how to execute it

            Investing in Secular Stocks Series: Part 4.1 – The 3 Valuation Methods and Fundamental Analysis

            Investing in Secular Stocks Series: Part 4.1 – The 3 Valuation Methods and Fundamental Analysis

            Simple Portfolio Series (DIY) Part 2: The Traditional Portfolio 60/40, what it is, for whom, and its performance

            Simple Portfolio Series (DIY) Part 2: The Traditional Portfolio 60/40, what it is, for whom, and its performance

            Trending Tags

              • I. Goal Based Investing
              • II. Compounding & Inflation
              • III. Assets Risks & Returns
              • IV. Efficient Diversification
              • V. The Investor
              • VI. Assets and Investments
              • VIII. Successful Investing
              • IX. Sustainable Investing and ESG
              • X. Kits and Tips
              • XI. Other Topics
            • Wealth and Investing
              • All
              • Investing
              • Wealth
              Financial Markets Outlook 2024: US and Japanese stocks gains, and 10-year US bond yields below 4%

              Financial Markets Outlook 2024: US and Japanese stocks gains, and 10-year US bond yields below 4%

              Financial Markets Outlook 2024 from the world’s largest investment banks: Disparity in forecasts for U.S. economic growth results in projections for the S&P 500 between 4,500 and 5,000 points, with interest rates on 10-year U.S. bonds below 4%

              Financial Markets Outlook 2024 from the world’s largest investment banks: Disparity in forecasts for U.S. economic growth results in projections for the S&P 500 between 4,500 and 5,000 points, with interest rates on 10-year U.S. bonds below 4%

              Investing in Large, Medium or Small Caps: Part 4 – The Valuation of Equity Capitalization Classes

              Investing in Large, Medium or Small Caps: Part 4 – The Valuation of Equity Capitalization Classes

              Investing in Small, Medium or Large Caps: Part 3 – The market cycles of stocks capitalization segments

              Investing in Small, Medium or Large Caps: Part 3 – The market cycles of stocks capitalization segments

              Investing in Small, Medium or Large Caps: Part 2 – Features and pros and cons of stocks caps segments

              Investing in Small, Medium or Large Caps: Part 2 – Features and pros and cons of stocks caps segments

              Investing in large, mid or small caps: Part 1 – The capitalization classes of stocks and their long-term performance

              Investing in large, mid or small caps: Part 1 – The capitalization classes of stocks and their long-term performance

              Trending Tags

                • Investing
                • Wealth
              • Retirement & Savings
                • All
                • Retirement
                • Savings
                Retirement Series #3: Choice of asset allocation. Part 2 – The allocations preferred by experts and investors

                Retirement Series #3: Choice of asset allocation. Part 2 – The allocations preferred by experts and investors

                Retirement Series #3: Choice of asset allocation. Part 1 – The effect on accumulated capital

                Retirement Series #3: Choice of asset allocation. Part 1 – The effect on accumulated capital

                Retirement Series: How much money do we need to live through retirement?

                Retirement Series: How much money do we need to live through retirement?

                Retirement Series: Part 1 – Overview – A backwards view

                Retirement Series: Part 1 – Overview – A backwards view

                How many years do our public or social pensions last?

                What is the replacement rate of retirement pensions?

                Trending Tags

                  • Retirement
                  • Savings
                • Tools
                  • All
                  • Calculators
                  • Publications
                  • Sites and apps
                  Yield curve

                  Yield curve

                  OECD Composite Leading indicator

                  OECD Composite Leading indicator

                  The Conference Board index

                  The Conference Board index

                  Baltic Dry Index

                  Baltic Dry Index

                  Retail sales

                  Retail sales

                  ADP Employment Report

                  ADP Employment Report

                  Trending Tags

                  • calculators
                  • Calculators
                  • Publications
                  • Sites and apps
                • More
                  • All
                  • Best of
                  Best Of Mutual Funds Series: Dividend Stocks for Investors Outside the U.S.

                  Best Of Mutual Funds Series: Dividend Stocks for Investors Outside the U.S.

                  Best Of Mutual Funds Series: Dividend Stocks for U.S. Investors

                  Best Of Mutual Funds Series: Dividend Stocks for U.S. Investors

                  Best Of Mutual Funds Series: Investment Grade Bonds, Indexed, for Eurozone Investors

                  Best Of Mutual Funds Series: Investment Grade Bonds, Indexed, for Eurozone Investors

                  Best Of Mutual Funds Series: US Bonds, Indexed, for US Investors

                  Best Of Mutual Funds Series: US Bonds, Indexed, for US Investors

                  Best Of Mutual Funds Series: Passive, US Large Stocks, for Non-US Investors

                  Best Of Mutual Funds Series: Passive, US Large Stocks, for Non-US Investors

                  Best Of Mutual Funds Series: Passive Large US Stocks for US Investors

                  Best Of Mutual Funds Series: Passive Large US Stocks for US Investors

                  Trending Tags

                    • Best of
                    • Reviews
                    • Snapshots
                    • Others
                  No Result
                  View All Result
                  Investorpolis
                  No Result
                  View All Result
                  Home Wealth and Investing Investing

                  Investing in money market funds: Part 4 – Who are the investors and how to invest

                  24 de October, 2023
                  in Investing, Wealth and Investing
                  Reading Time: 6 mins read
                  0 0
                  0
                  Investing in money market funds: Part 4 – Who are the investors and how to invest
                  Share on FacebookShare on Twitter

                  This is the fourth article on investing in money market funds.

                  In the first article we saw that they are money market investment funds, that these funds are one of the three cash investment options, along with deposits and savings accounts in banks, and the profitability and risk of this investment.

                  In the second article we presented the various types of money market funds and advantages and disadvantages of investing in these funds.

                  In the third article, we discussed the size of the money market funds and the main variables for the valuation of these funds.

                  In this article we will see how these investments can be used and how to make the selection of money market investment funds.

                  Who Money Market Funds Are Intended For

                  The main purpose of a money market fund is to provide investors with a secure and very liquid asset, cash equivalent and debt securities-based, using small investment amounts.

                  Money market investment funds are characterized as low-risk, low-return investments.

                  Money market funds are attractive to investors because they typically have no commissions, entry or exit fees.

                  Many investors invest substantial amounts in these funds for the short term.

                  Money market funds are used to preserve capital and generate certain yield, and they offer an attractive option for storing money during periods of increased market volatility.

                  To this extent, money market investment funds are usually a good alternative to investing cash in deposits or savings accounts in banks, i.e. very short-term investments, whether for active or retired investors.

                  The fact that they usually have a very low yield and much lower than inflation makes them uninteresting for medium and long-term portfolios.

                  Money market funds are not suitable for long-term investment goals, such as retirement planning, as they do not offer much capital appreciation.

                  For investors with a balanced risk profile, these funds are used to park money in times of greater uncertainty or market volatility.

                  These funds are also useful for integrating very conservative investor portfolios.

                  Money Market Funds in the Current Context of Markets

                  In the low-rate environment that has persisted in recent years, money market funds have offered negligible returns.

                  Now that interest rates are higher, yields have risen, and in some cases, especially in the US, they are already outpacing inflation.

                  Rising interest rates are allowing savers to protect the purchasing power of their wealth and income.

                  And investors are investing more and more in these funds.

                  At the moment, the total amount invested in these funds already reaches more than $5.8 trillion in the US, a growth of 17.8% in the last year, and an increase of 13.1% this year alone.

                  This growth is due to rising interest rates and the crisis in US regional banks.

                  The Eurozone has seen the same growth, although short interest rates are still below inflation, and the money market funds market is not as developed as in the US.

                  How to Invest in Money Market Funds

                  The selection of money market funds to invest in must comply with several fundamental criteria:

                  Denomination Currency

                  The currency of denomination is important since the purpose of the fund is to preserve capital, we should not incur foreign exchange risk. That is, in principle, investors should invest in funds denominated in their own currency.

                  Wide availability

                  The first condition is that the funds are available, that is, they must be traded in the country and be distributed by the banks or brokers in which we have an account.

                  Similarly, we have tried to avoid funds that charge liquidity fees or impose limits on redemptions.

                  Minimum amounts and low fees

                  The funds chosen should be those that accept small minimum amounts, for example, 3 to 5 thousand euros or dollars. On the other hand, commission and fee costs should be as low as possible, never exceeding 0.5%.

                  Consistently higher yields

                  We should select the funds with the highest consistent returns.

                  The industry standard for making comparisons between funds is 7-day yields, which are the net valuations (minus fees) of funds over the last 7 days projected for the next 12 months.

                  Large volume of assets under management

                  Funds should be the largest in terms of assets for three reasons.

                  The first is that the fact that they have large amounts under management signals that they have the quality to attract a lot of investors and capital.

                  The second is that the funds that have the best chance of preserving capital are the largest funds, as they are best able to withstand spikes in liquidity stress in the markets.

                  The third is that the larger the fund, the better the level of service to clients.

                  Money market investment funds are not rated, but there are databases that contain the most important information on the largest funds

                  Money market funds are not subject to ratings, unlike equity and bond funds (the closest funds that exist with a rating are the so-called ultra-short bond funds, with an investment maturity of up to 3 years).

                  However, the specialized financial information agency Morningstar contains a good database on the main characteristics of the largest investment funds in the US money market.

                  The largest money market investment funds in the US are those managed by the largest investment fund managers in general, namely Vanguard, Blackrock, Fidelity, State Street, Charles Schwab, T Rowe Price, Invesco, JP Morgan and Morgan Stanley.

                  The eurozone’s largest money market investment funds are a mix of global and European asset managers, including Vanguard, Blackrok, Fidelity, Amundi, DWS, UBS, Natixis and Morgan Stanley.

                  In the Tools folder, we will develop in more detail the largest funds available to US and Eurozone investors.

                  Previous Post

                  Investing in money market funds: Part 3 – The market growth and the funds returns

                  Next Post

                  Investing in large, mid or small caps: Part 1 – The capitalization classes of stocks and their long-term performance

                  Feria

                  Feria

                  Related Posts

                  Financial Markets Outlook 2024: US and Japanese stocks gains, and 10-year US bond yields below 4%
                  Wealth and Investing

                  Financial Markets Outlook 2024: US and Japanese stocks gains, and 10-year US bond yields below 4%

                  27 de November, 2023
                  Financial Markets Outlook 2024 from the world’s largest investment banks: Disparity in forecasts for U.S. economic growth results in projections for the S&P 500 between 4,500 and 5,000 points, with interest rates on 10-year U.S. bonds below 4%
                  Investing

                  Financial Markets Outlook 2024 from the world’s largest investment banks: Disparity in forecasts for U.S. economic growth results in projections for the S&P 500 between 4,500 and 5,000 points, with interest rates on 10-year U.S. bonds below 4%

                  27 de November, 2023
                  Investing in Large, Medium or Small Caps: Part 4 – The Valuation of Equity Capitalization Classes
                  Investing

                  Investing in Large, Medium or Small Caps: Part 4 – The Valuation of Equity Capitalization Classes

                  27 de November, 2023
                  Investing in Small, Medium or Large Caps: Part 3 – The market cycles of stocks capitalization segments
                  Investing

                  Investing in Small, Medium or Large Caps: Part 3 – The market cycles of stocks capitalization segments

                  14 de November, 2023
                  Investing in Small, Medium or Large Caps: Part 2 – Features and pros and cons of stocks caps segments
                  Investing

                  Investing in Small, Medium or Large Caps: Part 2 – Features and pros and cons of stocks caps segments

                  14 de November, 2023
                  Investing in large, mid or small caps: Part 1 – The capitalization classes of stocks and their long-term performance
                  Investing

                  Investing in large, mid or small caps: Part 1 – The capitalization classes of stocks and their long-term performance

                  14 de November, 2023
                  Next Post
                  Investing in large, mid or small caps: Part 1 – The capitalization classes of stocks and their long-term performance

                  Investing in large, mid or small caps: Part 1 - The capitalization classes of stocks and their long-term performance

                  Leave a Reply

                  Your email address will not be published. Required fields are marked *

                  Trending

                  Financial Markets Outlook 2024: US and Japanese stocks gains, and 10-year US bond yields below 4%

                  Financial Markets Outlook 2024: US and Japanese stocks gains, and 10-year US bond yields below 4%

                  27 de November, 2023
                  Financial Markets Outlook 2024 from the world’s largest investment banks: Disparity in forecasts for U.S. economic growth results in projections for the S&P 500 between 4,500 and 5,000 points, with interest rates on 10-year U.S. bonds below 4%

                  Financial Markets Outlook 2024 from the world’s largest investment banks: Disparity in forecasts for U.S. economic growth results in projections for the S&P 500 between 4,500 and 5,000 points, with interest rates on 10-year U.S. bonds below 4%

                  27 de November, 2023
                  Investing in Large, Medium or Small Caps: Part 4 – The Valuation of Equity Capitalization Classes

                  Investing in Large, Medium or Small Caps: Part 4 – The Valuation of Equity Capitalization Classes

                  27 de November, 2023
                  Investing in Small, Medium or Large Caps: Part 3 – The market cycles of stocks capitalization segments

                  Investing in Small, Medium or Large Caps: Part 3 – The market cycles of stocks capitalization segments

                  14 de November, 2023
                  Investorpolis

                  We developed this blog because we believe that only a small learning effort is needed to make a big change in the decisions and results of our investments and financial assets.

                  Main categories

                  • Investing Series Guide
                  • Wealth and Investing
                  • Retirement & Savings
                  • Tools
                  • More

                  Newsletter

                  Sign to our mailing list to receive updates direct to your inbox!

                  *We don’t spam

                  • Privacy Policy
                  • Cookie Policy
                  • Contacts

                  © 2021 - Investorpolis / Powered by Delta Soluções

                  • pt-pt Português
                  • fr Français
                  • es Español
                  • en English
                  • Home
                  • Investing Series Guide
                    • I. Goal Based Investing
                    • II. Compounding & Inflation
                    • III. Assets Risks & Returns
                    • IV. Efficient Diversification
                    • IX. Sustainable Investing and ESG
                    • V. The Investor
                    • VI. Assets and Investments
                    • VII. Index Funds
                    • VIII. Successful Investing
                    • X. Kits and Tips
                    • XI. Other Topics
                  • Retirement & Savings
                    • Retirement
                    • Savings
                  • Wealth and Investing
                    • Investing
                    • Wealth
                  • Tools
                    • Calculators
                    • Publications
                    • Sites and apps
                  • More
                    • Best of
                    • Reviews
                    • Snapshots
                    • Others
                  • About us
                    • Who we are
                    • Mission
                  • Login
                  • Cart

                  © 2021 - Investorpolis / Powered by Delta Soluções

                  Welcome Back!

                  Login to your account below

                  Forgotten Password?

                  Retrieve your password

                  Please enter your username or email address to reset your password.

                  Log In
                  We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
                  Cookie configurationCookie PolicyAcceptReject
                  Manage consent

                  Privacy Overview

                  This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
                  Advertisement
                  Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
                  Analytics
                  Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
                  Functional
                  Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
                  Necessary
                  Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
                  Others
                  Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
                  Performance
                  Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
                  SAVE & ACCEPT

                  Add New Playlist

                  Are you sure want to unlock this post?
                  Unlock left : 0
                  Are you sure want to cancel subscription?