Money Market Fund is a mutual fund that is open-ended that invests in securities for a short-term. It is compared to bank deposit only with a higher return. Good examples include commercial paper and US Treasury bills. They provide liquidity to financial intermediaries. These funds reduce risks associated with liquidity, market, and credit.
Money market funds are suitable for individuals who want to make a short-term deposit and earn dividends from it. Secondly, investors who also want to make risk-free investments should consider it. If an investor seeks to have a greater yield than the banks give for deposits, money market funds is a good alternative. In Japan, in the 1990s when banks’ interest rate were low, money market funds were established to cater for investors in search of an alternative.
Start of money market fund
Bruce R. Bent II father and with his father’s partner Henry B. R. Brown came up with the first money market fund. This fund is recognized for having a great impact on the history of financial market. Peter Lynch, an author, thinks the two deserve monuments done in their honor.
Life of Bruce Bent II
Bruce Bent II was born in New York. He attended Northestern University to undertake a bachelor’s degree in philosophy. Bruce Bent II then followed his father in to the financial sector where he has used his financial expertise and innovating solutions to help banks, broker-dealers and various other financial firms.
Currently, Bruce Bent II is the Vice Chairman and President of Double Rock Corporation, a firm that provides cash management and cash-related solution to different individuals and corporations. Double Rock has five subsidiaries which Bruce Bent II is a senior executive to all of them. He was a member of Entrepreneur’s Organization in New York and served on the President’s Advisory Council of Scenic Hudson. Mr. Bent II is a former finance chairman of Gotham chapter in Manhattan and currently a member of the Young Presidents’ Organization. In 1991, he earned a Bachelor of Science in Philosophy from Northeastern University.
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