How Risky Is Your Money Market Fund?

It’s been almost a year since the “collapse” of the Reserve Primary Fund -- the money market fund that “broke the buck” last September.

When we read “collapse” of the Reserve Primary Fund in the media, we should put it in perspective. The Fund is nearly set to pay back $.99 on the dollar to investors, plus a 4% rate of return. That’s hardly a collapse, but if you invested in the Fund expecting daily liquidity, then it felt like a failed fund.

The point of the post is to remind, review and/or educate investors on the safety -- or riskiness -- of their money market funds. Investment News recently published an article discussing the programs that are in place to help protect money market funds.