Question:

How safe are mutual fund money market funds?

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How safe are mutual fund money market funds?

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  1. It depends if the money market fund is leveraged or not; what is the money market fund holding such as CDO's (Collateralized debt obligations) - real estate loan debt.

    http://en.wikipedia.org/wiki/Collaterali...

    Most MM funds are pretty liquid (reasonably safe), but not guaranteed. Check with the company who has your MM fund and ask if it is insured or not. Some companies such as etrade have a FDIC Insured MM fund.

    I would rather be in 30 day US T-Bills.

    $1000 ea (US T-Bills)

    US Fed Gov Guaranteed

    No Fed income tax on US Treasury Bills or Treasury Bonds

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