- Institutional US treasury money market mutual funds have lower expenses than retail funds
- Treasury money market funds are very conservative and low risk
- Institutional money market funds have higher investment requirements, normally a very substantial amount, and they are marketed to governments, companies, and fiduciaries with access to large funds for investing
Investing in an institutional US treasury money market no load mutual fund may be a smart move for many investors, depending on the investment goals and strategies of the investor. Institutional money market funds are different than retail money market funds in a number of ways. Institutional money market funds have a minimum investment that is high, because these funds are generally marketed to institutions like governments, companies and corporations, and fiduciaries. The high investment amount may be too high for most individuals except the very wealthy, and the share classes for these mutual funds are low expense shares to minimize the cost of holding these investments. Retail money market funds are directed more towards individual investors rather than large institutions, and normally have lower minimum investment requirements.
Institutional US treasury money market mutual funds take the funds in the investment pool and invest them into US treasury money market funds on an institutional level. This allows these funds to pay lower expenses in exchange for higher initial investments. Because mutual funds pool money from a number of investors, reaching the high investment amount needed for institutional funds is not a problem. Money market mutual funds are very stable while also being very liquid. This offers several benefits, including fast and easy capital access and an extremely low risk of a loss of your investment capital. These investments are considered safe, and are used for funds that may be needed in a short time. Because of the liquidity of these investments you can withdraw your capital as soon as it is needed, with no long waiting periods or delays.
Institutional money market funds are a better choice than retail funds because they cost less in expenses. They offer the same advantages as other money market funds but without the higher costs associated with retail funds. Treasury money market funds are a pretty safe investment bet, because the chance that the US government will default on debts is almost astronomical and will probably never happen. Institutional US treasury money market mutual funds offer conservative investing, with the goal of preserving your investment capital while maximizing the returns on that investment. All of this while also keeping your investment capital liquid and easily accessible when you will need it. Choosing no load funds for your investing needs will also cut expenses and maximize your return, because there are no load fees averaging seven or eight percent.
Load fees are similar to commissions, and they are paid to financial advisors and brokers who advise you on which funds to place your investment capital in. With load mutual funds, whether they are institutional money market funds or retail. A good piece of advice is to always research and choose your own treasury money market funds, or any other investment type. Not only will you save load fees but you will also usually choose better investments with a little knowledge and comparisons between possible funds. Not all brokers may act in your best interest simply because you pay them a load fee, and this is due to the fact that many may also get incentives from the mutual funds, for directing new investors to that specific fund. No load funds are the best option as long as you are comfortable making your own investments decisions. If you want investment advice, pay for an hour of time with a financial advisor, to go over possible institutional US treasury money market no load mutual funds. This way you can be assured there is no conflict between your investment interests and the financial interests of the broker or adviser, and still get the advice you want and need.
