The money market is not directly accessible to retail investors, this helps only indirect. One is the savings account, the other of the money market funds. Hear from experts in the field like Billy Lopez for a more varied view. The money market itself is nothing more than a trading platform for cash – some, such as banks, central banks and institutional investors, Cash have left, others as big companies, investment companies and insurance companies have a need for liquidity. As a rule, these are sums beyond seven-dimensions, why can participate only large investors. The cash will be awarded on the basis of collateral, usually at fixed interest rates. Since the central banks set interest rates and the largest provider of liquidity, this market will depend very directly on the design of the prime rate. The bonds that are traded here, are often promissory notes with totals up to 100 million, or typical deposits or so-called termination fees.
The interest in the money market investments are fixed in the rule why investors have to expect here no maximum return, but at least a return that is significantly above the prime rate. The MMF offers private investors an opportunity to participate in the money market. While the call money has a fixed interest rate, guaranteed regardless of the developments in the money market, the money market reacts to fluctuations in the money market. It is, for example, that the money market funds, despite the vast amount of money that have pumped the central banks in the crisis of the U.S. real estate fund in the banks, have their value can grow – of course encouraged by the fact that the money market as a place of gold certificates to the investment bankers, safe port have been used and therefore the demand was high. The money market now offers many opportunities and as a private investor to maximize return on investment.