Money market mutual funds have been stuffing the pockets of investors for years. With nice 4 to 6 percent average returns every year and 3 trillion dollars’ worth bought since the early turn of the 21st century, money market mutual funds focus on short term investments (lasting no more than a year) on debt securities national agencies like the government and banks fulfill. Costing $1 a share, the good thing about money market mutual funds is that only the yield goes up and down.

Money market mutual funds place serious competition on less savvy savings strategies by CDs and checking accounts. To start, they deal with only safe investments. Unlike volatile stock funds, money market mutual funds deal with the secure t-bill and others. Any debt securities incurred by the government is not volatile, since taxes could be raised to help pay for it. The chances of losing your principal amount in money market mutual funds are near impossible. To help you out even more, many mutual fund companies even give you some form of insurance to protect against losses.

Another benefit of money market mutual funds is that they have high liquidity, which means you could take money out whenever you want. No fees are imposed unlike CDs and checks can be written directly from your money market account as well. All in all, money market mutual funds are the safest performers in the stock industry today.