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by Ron Taylor

When you choose a Money Market Fund over a CD you are basically deciding that return on investment potential is more important to you than risk.

That is, you want to make more money off of your investment than is possible with a CD.

The trade-off is that money market funds can go up and down, depending on the specific stocks your money market fund is indexed to. When choosing your money market fund take a close look at the index choices and choose a category, such as high growth, dividend, or utilities, that matches your investment style and risk tolerance levels. For example, high growth funds are typically riskier investments, but offer greater potential for rewards.

Certificates of Deposit (CDs) are conservative investments, with interest rates generally around the prime inteest rate. Also, as opposed to money market funds, in the U.S. CDs are FDIC insured.

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Choosing money market funds over CDs

by Ron Taylor

Choosing money market funds over CDs

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