Cash equivalent funds

These funds can provide you with some interest income and liquidity, while maintaining a high level of safety for your investment.

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Additional information

Cash equivalent funds, also known as money market funds, invest in short-term debt instruments such as treasury bills and other high-quality debt like commercial paper. The income provided by these funds is variable and typically lower than mutual funds that invest in longer-dated bonds and other fixed income investments. Offering a high degree of safety and liquidity, they are best suited to investors who are focused on preserving their capital, have a short time horizon and a low risk tolerance.  Cash equivalent funds can be used as a short-term parking spot prior to investing in longer-term or higher risk investments, such as income or equity funds.

Did You Know?

While money market funds are not guaranteed, they try to maintain a fixed daily price or Net Asset Value (NAV).  Only on rare occasions does the daily price fluctuate.