Money Market mutual fund rate of return

Money market is a mutual fund, which investors invest solely in cash or cash equivalent securities. These are mostly referred to as money market instrument. These investments are usually short term and very liquid investment. They also have a high credit quality.

Money market mutual funds include the following.

Government-sponsored enterprise notes

Mortgage-backed securities

Certificate of deposit

Corporate bonds

Personal line of credit

Money market funds

Insured bank deposit

Prime rate

Consumer price index

Fixed annuities

Government-sponsored Enterprise Notes

These notes have a 0.04% to 3.22% of return. It is worthy to note that these notes are not a guarantee by the concerned country or any federal agency.

Mortgage-backed securities

These investments usually have a small return to your original investment principle on a monthly basis alongside with an interest check. The yield in most instances differs slightly from what you will receive. The rate of return of these securities is usually 2.1% to 2.39%.

Certificate of deposit

In most instances, this mutual fund is usual bank issued and insured though not always. This is usually on the per depositor and per insured institution. It is worthy to note that the annual rate of return does not remain on the deposit. Amounts received from the sale of CD at a current market value can be higher or less than the invested amounts.CD value may decline even in a raising interest rate environment. At times early withdraws are usually not accepts though you will not have to pay any additional annual fee, commissions, or period fees. The rate of return usually varies on an annual basis.

Corporate Bonds

These bonds have an annual return rate of .041% to 4.99%

Personal line of credit

While investing in this fund, it is worthy to note that borrowing against securities has certain risks, which might not be appropriate to everyone. This means is the value of the collateral declines you have to deposit cash or additional securities or the securities in your account might be sold to meet the margin call. The rate of return usually varies over the invested amounts.

Tax-free municipal Bonds

These are usually categories according to the rating. The bonds with a triple A rating usually have a 0.51% to 3.3%. For the a rated bonds they have a 0.23 to 3.80%.

Money Market Funds

This is usually categorized according to shares, which have been invested. Some of the categories within these funds include investment shares, retirement shares, and tax-free money market fund. All these funds have a 0.01% rate of return.

Insured bank deposit

The current rate of return of this is at 0.01%

Prime rate

This has an annual return rate of 3.25%

Consumer price Index

This has a return rate of 0.2.