Apr 21, 2024
Are Money Market Funds Safe?
Money market funds, known for their low risk, low transaction costs, and returns that are typically better than regular savings accounts, along with the flexibility of buying and selling at any time without the long-term commitment required for fixed deposits, are a popular tool for parking idle funds.However, are money market funds guaranteed to preserve capital? Under what circumstances might they incur losses?
In theory, money market funds are capital-preserving, but there are always exceptions in the financial market.