Cryptocurrency Q&A
Can a government money market fund lose value?
Can a government money market fund lose value?
CryptoDynasty
Thu Oct 17 2024
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5 answers
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I'm concerned about the safety of my investment in a government money market fund. I want to know if it's possible for such a fund to lose value, and if so, under what circumstances could that happen.
5 answers
LitecoinLodestar
Sat Oct 19 2024
Money market funds, despite their reputation for stability, are not without risk. One key aspect to note is that these funds are not insured by the Federal Deposit Insurance Corporation (FDIC), which is a significant distinction from traditional bank deposits.
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SamuraiBrave
Fri Oct 18 2024
The absence of FDIC insurance means that investors in money market funds do not have the same level of protection against potential losses as those who keep their money in FDIC-insured bank accounts.
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Emanuele
Fri Oct 18 2024
Consequently, money market funds can experience declines in value, even if these occurrences are relatively rare. This underscores the importance of understanding the risks associated with investing in these funds.
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CherryBlossomFalling
Fri Oct 18 2024
Despite the potential for losses, money market funds remain popular among investors due to their relatively low-risk profile and ease of access. They are often seen as a safe haven for cash, offering higher yields than traditional savings accounts.
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Alessandra
Fri Oct 18 2024
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