- A U.S. government money market no load fund investment may be the wisest investment choice for most investors.
- A government money market fund is a relatively safe and low risk way to protect your investment capital while earning a decent return.
- A U.S. government money market investment with a no load fund can save you a substantial amount in load fees.
A U.S. government money market no load fund can be a smart investment choice for many people. Money market funds are a very safe place to put your investment capital, and they are extremely liquid so it is easy to take your capital out of these funds. A government money market fund will preserve your investment capital so that it is available when you want or need it, but still put this money to work for you earning a return on your investment in the meantime. Money market funds have extremely low risks and their entire aim is to preserve your investment capital while maximizing the return on your investment. A U.S. government money market fund uses government investments, and the account value will not change and fluctuate up and down, which is like a savings account from a bank in this respect. These funds are unlike bank CDs though, because they are not insured by the FDIC.
When it comes to mutual funds, U.S. government money market mutual funds are normally considered ideal for investment capital that you can not afford to lose or will need within a short period of time. This can be for any reason. Maybe you have the money to fix your home but it will be a few months before the contractor can schedule you in, or maybe you are preparing for retirement. There are a large number of reasons and circumstances when a government money market fund is the best investment option open to you. The variety of benefits you can get from using these funds make them very attractive and popular. Not all money market funds are created equal though, so make sure to do all of the required research to choose the best fund for your investment preferences and strategy.
A no load U.S. government money market fund is a good option because there are no load fees. These fees are simply sales commissions which are deducted from your investment capital, and given to the financial advisor or broker that steered you to the money market mutual fund you invest in. In addition to paying eight percent or more of your investment money in a front end load fee, you can do some research and choose your own no load funds instead. This is usually the best option, unless you are uncomfortable making your own investment decisions, because a broker or advisor who markets load mutual funds may also get a second commission from load funds, and this commission can be determined by how many investors the broker brings in or the amount of investment capital total that the advisor brings to the fund. This can lead to a conflict of interest, because a broker or advisor may steer you to a fund that does not meet your investment needs as well as another fund might simply because of a larger commission from the fund.
A no load government money market fund can perform much better over the safe investment period than a load fund. This is because regardless of when the load fee is taken out, whether it is a front end load, back end load, or a combination of both, this fee deducts from your investment capital and the return you will get. No load U.S. government money market mutual funds may be the way to go if you want to be able to quickly withdraw your capital, if you want to protect your investment with very small risks, or you want to invest into a mutual fund without paying load fees, which constitute a commission to the broker or financial advisor and can be exorbitant.
