I have a publication by the Wall Street Journal about investing. It has a section on money market funds and says "...for every one dollar you put in (into the fund) you will get one dollar back". How can this be? If you put one dollar in and get one dollar back..is'nt this doubling your money? I need an explanation on this. Thanks
2006-10-04 20:51:01 · 5 answers · asked by westphalia1 2 in Business & Finance ➔ Investing
Hmm, let's see, for every one dollar you put in, you get one back.
That would be a zero percent return, wouldn't it?
Whatever their claim, or anyone else's, it's a simple matter to check up on them and verify. All MF's are listed and regulated by the SEC. They should have two or three years of history you can verify, or don't invest.
Any fund that merely beats the S&P is a winner and in the top 20% of all funds.
You can do the same thing, only better, by buying the Spyder ETF (symbol SPY), and not pay anyone to do it. You can set a Protective Stop, or diversify greater or less, by buying the Diamonds (Dow ETF, symbol DIA), or Qubes (Nasdaq ETF, QQQQ), and be diversified across the entire market.
2006-10-05 00:42:25 · answer #1 · answered by dredude52 6 · 0⤊ 0⤋
I'll guarantee you 10% in return.
Send me a dollar and I'll send you two nickels. :-)
I think that dollar is your original dollar.
Most money market funds are currently providing a return in the neighborhood of 4.5%. That means you'll get your dollar back, plus another four and a half pennies.
2006-10-05 00:52:46 · answer #2 · answered by derek 4 · 0⤊ 0⤋
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2006-10-05 00:32:04 · answer #3 · answered by stock.trade 1 · 0⤊ 0⤋
Is possible. Does it say when u getting the other dollar and your original dollar back?
2006-10-04 22:45:36 · answer #4 · answered by sing 2 · 0⤊ 0⤋
B - deposit insurance. probability and go back are appropriate. economic employer deposits have a economic employer assure (regularly also authorities supported) while funds marketplace account do not - hence the reason you will get a better go back (cos you're accepting a significantly better probability of dropping your funds if the employer operating the account is going undesirable).
2016-11-26 03:36:15 · answer #5 · answered by ? 3 · 0⤊ 0⤋