The market is filled with many different types of investment plans and tools, and it is quite easy for the people to get confused as to where to invest. For people looking to invest in safe investment tool that offers significant returns with low risk, one of the preferred choices of investment tools is the money market fund. It is a kind of mutual fund that invests in securities and cash equivalent investment instruments such as U.S. Treasury bills, bonds, and commercial paper. The money market fund was invented in 1970 by Bruce Bent II’s father, one of the leading financial executives in the country.
The money market fund retains the stable net asset value at $1 and can be quickly liquidated. It acts as an anchor to the investment portfolio is an important aspect of the investment strategy for many corporations as well as individuals. The concept behind the invention of money market fund was to create a fund that is stable and cash equivalent with low risk, which would help people invest their money instead of putting on the bank with low interest. Even though the returns offered by the money market fund are lower than many other market linked investment tools, it ensures that the investors can cash in their money at any time they want.
Bruce Bent II has spent years in the financial industry where his knowledge and expertise are regarded highly. He studied Philosophy at Northeastern University and started his career soon after. Bruce Bent II is the President of Reserve Management Company and Double Rock Corporation, where he also serves as the Chairman. Bruce Bent II is one of the most prominent names in the retirement services business and cash flow management.