Tommaso
Mon Sep 16 2024
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8 answers
1524
Are MMFs risky investments?
Are MMFs, or money market funds, inherently risky investments? It's a valid question to ask given the volatility of the financial markets. On the surface, MMFs seem relatively low-risk, offering investors a stable return with minimal risk of capital loss. However, a closer look reveals that MMFs can be exposed to various risks, including credit risk, interest rate risk, and liquidity risk. As a potential investor, it's crucial to understand these risks and weigh them against the potential benefits of MMFs before making a decision. So, are MMFs risky investments? The answer may depend on your individual risk tolerance and investment goals.
