UBS (LUX) MONEY MARKET FUND - P FONDS aktueller Kurs | 971303 | LU0006344922 (2024)

FAQs

What is the difference between a money market fund and a prime fund? ›

Money market funds that primarily invest in corporate debt securities are referred to as prime funds. In addition, money market funds are often structured to cater to different types of investors. Some funds are intended for retail investors, while other funds are intended for institutional investors.

At least 99.5% of their assets are backed by the full faith and credit of the U.S. government. While money market funds aren't FDIC-insured, investments held in brokerage accounts (including money market funds) may be insured by SIPC.

Institutional Investors are eligible to invest in institutional money market funds with a variable net asset value (VNAV). Retail Investors may also choose to invest in these funds. Both Retail and Institutional Investors are eligible to invest in government money market funds.

For money market mutual funds, the difference between WAM and WAL is that WAM takes into account interest rate resets and WAL does not. The SEC limits the WAL for money market mutual funds to 120 days. Duration: A measure of the price sensitivity of a bond fund or debt instrument to a change in interest rates.

U.S. government money market funds are typically regarded as the safest of the three, and within that category, those with a high concentration of Treasuries—with full government backing—would be exposed to a lower likelihood of default risk.

Disadvantages of money market accounts

For example, you often won't earn as much with a money market account as you would with a traditional CD because the CD has a time commitment: The bank will pay you more in exchange for locking up your funds longer.

Money market funds can protect your assets during a recession, but only as a temporary fix and not for long-term growth. In times of economic uncertainty, money market funds offer liquidity for cash reserves that can help you build your portfolio.

All investments are subject to market risk, including possible loss of principal. Retail Money Market Funds: You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so.

Low Risk and Short Duration

As stated above, money market funds are often considered less risky than their stock and bond counterparts. That's because these types of funds typically invest in low-risk vehicles such as certificates of deposit (CDs), Treasury bills (T-Bills), and short-term commercial paper.

What is the 7 day yield on a money market fund? ›

The seven-day yield is a method for estimating the annualized yield of a money market fund. It is calculated by taking the net difference of the price today and seven days ago and multiplying it by an annualization factor. Since money market funds tend to be very low risk, the higher the seven-day yield the better.

However, Aaa-mf rated money market funds are expected to be managed by firms with investment-grade or equivalent credit profile, as indication of stable operating environment and minimal incremental risk stemming from the sponsor's own operational, market or funding challenges.

The 7-Day yield is the average income return over the previous seven days, assuming the rate stays the same for one year and that dividends are reinvested. It is the Fund's total income net of expenses, divided by the total number of outstanding shares and includes any applicable waiver or reimbursem*nt.

You could lose money by investing in a money market fund. An investment in the Fund is not a deposit of the bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Money market funds are not subject to credit risk, but will have interest rate risk.

Alternatives to money market funds, money market accounts, and savings accounts include: Certificates of deposit: CDs are term-based savings accounts that lock up your funds for a set time period in exchange for higher interest rates.

On occasion, a money market fund has “broken the buck,” meaning that its NAV fell below $1 per share. But fund managers generally want to avoid that happening, even if it means using their own capital to absorb losses.

(1) Short-term goals. Money market funds are useful for short-term goals, such as saving for a vacation, a wedding, or a down payment for a house. In these cases, it may be more important that your savings hold their value over the shorter time period. (2) Maintaining an emergency reserve.

VMMXX-Vanguard Cash Reserves Federal Money Market Fund | Vanguard.