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The risk of a money market mutual fund is similar to that of a savings account. Both are low-risk, slow-growth savings vehicles. Money market funds are viewed as a cash equivalent, similar to a savings account.
There are many different low-risk short term investments, a few of these include short term bond funds, online savings accounts, government bonds and money market mutual funds.
Money markets are considered a low risk, low yield investment. They usually pay better than simple interest but, because the risk is small they don't pay as well as higher risk investments. Those high risk investments can also lose your money for you a lot faster.
A high credit risk is a person who owes a lot of money already or does not have a steady income. A low risk person owes little to no money and has a good, solid income.
Invest it based on your preference and ability to take risks. So for example if you are about to retire you would normally have a low risk preference and put your money in relatively safe relatively low interest paying products eg savings accountsIf you have a load of cash and like risk and are young (can get over any losses) you could put part of the cash into the stock market, hedge funds, or commodities - high returns but a high risk you won't get your money back
1. Money market generates higher rate of returns than holding cash. 2. Money Market funds are liquid 3. low risk The three fundamental characteristics of money market instruments are: (a) low default risk, (b) short-term to maturity, and (c) high marketability. These characteristics give money market instruments their characteristic of being low risk. Money market investors demand low-risk securities because their cash excesses are only temporary.
The risk of a money market mutual fund is similar to that of a savings account. Both are low-risk, slow-growth savings vehicles. Money market funds are viewed as a cash equivalent, similar to a savings account.
Because the risks are less in money market. Because, there is less possibility of default of the credit of less than one year maturity. Likewise, the risk of interest rate is also low in the money market. On the other hand, the credit of the capital market is of long term nature. Due to this risks are more and are of varied nature in capital market.
credit default swaps
Extremely Risky. Some of the risks involved in investing in Bonds are: 1. Interest Rate Risk 2. Re-investment Risk 3. Call Risk 4. Default Risk & 5. Inflation Risk The Default Risk is the highest risk factor wherein you may not get your money back and in case of Junk Bonds this is extremely high, that is why they are called Junk Bonds Junk Bonds refer to Bonds issued by company's with low creditworthiness and past history of default in payments
There are many different low-risk short term investments, a few of these include short term bond funds, online savings accounts, government bonds and money market mutual funds.
Money markets are considered a low risk, low yield investment. They usually pay better than simple interest but, because the risk is small they don't pay as well as higher risk investments. Those high risk investments can also lose your money for you a lot faster.
Money market accounts are low risk accounts. It gives just a little more return on your money than a savings account but usually requires a larger amount of money to be left in the account. Usually you only need one money market account unless you are putting an extremely large amount of money in, over $250,000.
Equity is the owners fund and mutual fund is pool money from the investor and invest in securities market. mutual fund has low risk an depends upon market condition.
Fixed income investing is a method of investing in which there is a lower risk, but lower reward. It is used by investors who want a safe way to invest their money. There is almost no risk of a market crash, but the returns are low.
Get Low grossed $9,176,933 in the domestic market.
A high credit risk is a person who owes a lot of money already or does not have a steady income. A low risk person owes little to no money and has a good, solid income.