United States Treasury Money Mutual Funds
- United States Treasury Money Mutual Funds
- An investment fund that pools money from investors to purchase short-term, low-risk securities. A United States Treasury Money Mutual Fund is a type of mutual fund that invests primarily or exclusively in U.S. Treasury bills and repurchase agreements secured by Treasury bills. Each of these investments must meet standards described by the Securities and Exchange Commission (SEC) for credit quality, liquidity and diversification. Most investors who participate in a U.S. Treasury Money Mutual Fund do so to preserve principal, or who need a place to invest cash temporarily.
Since a U.S. Treasury Money Mutual Fund is a low-risk investment, its yields are correspondingly low. Treasury bills are secured by the full faith and credit of the United States Treasury, and are considered very low-risk investments because of the country's history of economic and political stability. These mutual funds typically calculate net asset value (NAV) once per day, usually following the close of the U.S. financial markets. The funds are invested with a goal of maintaining a net asset value per share of one dollar. As of May 2010, 9% of all U.S. mutual funds are money market funds.
Investment dictionary.
Academic.
2012.
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