If you need a safe way to invest your money while helping it grow, a Treasury money market fund could be just what you are looking for. As the name implies, Treasury money market funds invest primarily in instruments issued by the United States government. This investment strategy makes Treasury money markets one of the safest investments you can choose, since the investments are backed by the full faith and credit of the United States Treasury.
Contact your current mutual fund company if you already have one. Opening a Treasury money market account with the same company gives you the ability to move money back and forth more easily. The ability to liquidate money market shares and move them into other investments allows you to easily re-balance your portfolio as needed.
Contact several other low cost mutual fund companies as well. Ask for a prospectus for each company's Treasury money market fund. Most mutual fund companies offer at least one such investment option.
Compare the performance of each fund and the associated charges and expenses, since high expenses can eat into the return you receive on the fund. Treasury money market funds tend to be quite low yielding, so it is critical that you keep your expenses as low as possible.
Complete the application for the fund you want to use. You will need to supply your name, address and phone number, as well as your Social Security number and driver's license number for identification purposes.
Submit the completed money market fund application, along with your initial deposit, to the address listed on the form. Check the address carefully, as many mutual fund companies use a separate address for normal and overnight mail.
Items you will need
- Mutual fund prospectus
- Mutual fund application
- It's wise to compare the rates on Treasury and non-Treasury money market funds. You might be able to get a better rate on money market funds not tied to Treasury securities.
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