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Top money market funds in 2013

The top money market funds in 2013 were the pick of a particular brand of financial investment opportunities. These funds are designed to maintain a level of liquidity that doesn't fluctuate from day to day. Money market funds are also intended to return positive growth. Originally aimed at speculators into serious cash investment, they offer the potential to accrue considerable yields.

The top money market funds

The investment sector is always precarious, but there are good opportunities for those willing to devote time and effort (such as peer to peer lending).

Money market funds offer a growth rate which is only slightly above that offered by the London Interbank Offered Rate – the rate which applies when banks are lending amongst themselves. The reason these rates are so comparable is because the instruments the money market funds invest in are the same ones that banks use for funding short-term liquidity.

As such, the funds are considered secure, and offer daily liquidity. They are of particular interest to those professional investors who have large amounts of capital to play with. If that lump sum is in excess of £50,000 then this will be covered by the Financial Services Compensation Scheme.

In an attempt to increase the level of financial return, certain money market funds have bought securities which are less liquid. This means these securities have lower credit ratings. But the optimum way to action money market funds is to secure the initial capital.

Top funds money market funds in 2013

  • - As of January 2 2014, Goldmans Sterling Liquidity was offering a gross yield of 0.52%, with a 42 days dealing notice.
  • - JPM Sterling Liquidity was coming in at slightly below this, 0.5%, with 47 days.
  • - Fidelity Institutional Instant Cash Fund (Sterling) stands at 0.49%, and 50 days. The comparable market funds for the US dollar are much lower – 0.19% - while the Euro is lower still, at 0.16%.
  • - Black Rock Institutional Cash is another popular funds, with a gross yield of 0.4%.

Important points to note about money market funds

When dealing in any of the top money market funds in 2013 certain aspects were always be taken into account, and these will continue to apply. The value of any investment may go down as well as up, meaning you do not get back anywhere near what you originally invested. Money markets can prove to be a lucrative venture, but nothing is guaranteed. Financial speculation is a high risk business.

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