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If money market mutual funds allow easy access to my funds and are relatively safe, what are the risks involved in placing my short-term savings in these accounts? »

Why would someone put his or her money into a money market mutual fund?

A money market mutual fund pays a comparatively high yield for a very secure investment. Money market mutual funds are ranked just slightly higher than FDIC insured bank products on overall risk factors and money market mutual funds usually pay a slighter yield than bank products. Money market mutual funds often give the customer limited check writing privileges that offers easy access to their funds. For these reasons, money market mutual funds are one valuable resource for holding short term assets for an emergency fund or for preplanned large expenditures or as a safe heaven during times of investment uncertainty.

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