Money market funds are an investment opportunity that gives investors an opportunity to put their money into securities that have low risks such as the treasury bills and government bonds. This kind of investment is more of a safe bank, but it gives an investor a high return on the capital they initially invested. The best part of investing in the money market funds is that you are safe from credit issues that destabilize the money markets causing massive losses to investors. A lot of investors are getting attracted to this kind of investment because it assures them safety and chances of incurring losses are minimal.
The money market funds in the United States are governed by the Investment Company Act of 1940, and it sets all the rules and regulations that investors in the trade must adhere. Unlike credit markets, money market funds have a strategy that ensures investors don’t lose their money but increase their profits. With the money market funds, an investor buys a debt that is highly rated and then allows it to mature in a period that does not exceed 13 months. After the period is over, an investor can trade the debt and make profits. Compared to other platforms in the financial sector, the money market funds have the highest income level, and an investor is sure of making more cash from the venture.
The first money market fund in the world was incepted in 1971. This invention gave investors an opportunity to invest in a platform that assured them of high returns. Bruce was recognized for his invention, and his name is in the museum that preserves American history regarding finance.Before this invention, American investors still bought money in bulk and sold it to make profits. This design brought order and sanity in the business.
Bruce Bent II is an investor, entreprenuer and financial guru who understands money market funds. In fact, his father helped create the first money market fund ever. Bruce Bent II grew up closely to the financial world and went on to make it his career.
Bent II went to Northeastern University where he graduated with his Bachelor’s in Philosophy. After, college he followed his dad into the financial sector. He has been recognized for his innovative and creative techniques that he uses in this industry.
Currently Bent II is the President and Vice Chairman of the Board at Double Rock Corporation, a company that helps other financial instituitons such as banks and retail marketers.
For more information follow Bruce Bent II on Twitter.