Money Market Fund is a type of fixed income mutual fund that invests in short-term debt securities like US treasury bills, repurchase agreements, short-term bonds, and commercial paper with a relatively lower risk compared to other mutual funds. It provides liquidity to financial intermediaries and is regulated by Securities and Exchange Commission in the US under the Investment Enterprise Act of 1940. It is better than bank deposits because it has higher yields and higher returns compared to interest savings. This fund aims to maintain a stable dollar per share.
A money market fund provides short-term loans to corporate or government borrowers as they are credit worthy. The fund’s returns are relatively lower compared to long-term bond returns. They are more favorable to the old people who are looking for safe investments rather than growth. People invest a part of their retirement portfolio cash in the security. Some of the securities are taxable while other are exempted from taxation by the Federal Income Tax. Reserve Fund is the first type of money market fund. It was established in 1971. It was offered to investors who had an interest in preserving their cash and would get a small rate of return. Money funds in the United States are categorized into the type of investment strategy and distribution channel including prime, treasury, tax-exempt, institutional, or retail.
Bruce Bent II is the president and vice chairman of Double Rock Corporation. Bent II has a great understanding of zero risk and money market funds. In fact his father was the founder of the first money market fund. Bent II was the co-CEO and the senior vice president of Hallmark Investment Series, Trust-Hallmark Convertible Securities Fund, Hallmark Investment Series, and Trust-Hallmark first Mutual Fund. He holds a Bachelor of Science in Philosophy from Northeastern University.
He is also the senior executive to each of the Double Rocks wholly owned subsidiary companies and affiliates including Intrasweeep LLC, Landing Rock Group, Access Control Advantage Inc, Island Intellectual Property LLC, and LIDs Capital LLC. He has vast experience in the financial service. He has innovated numerous companies in the financial services industry. He is a role model to many people in society.