Best Mutual Funds Now

Generally, there are two reasons that an investor uses a money market fund: to “park” money in an interest-bearing account until a better investment opportunity comes along or to facilitate a short-term goal while retaining access to their money. We here at Best Mutual Funds Now know that if you invest with Vanguard, you’re probably wondering what the Vanguard Prime Money Market account offers you.

While some investment portfolios, especially those which trade regularly in managed investments, may include a percentage of their total in money market funds. This is especially true of retirement funds that have managed payouts, which are usually inserted into money market accounts for easy access.

Regardless of your reasons for looking into Vanguard money market options, there are a lot to choose from. Ten in total, actually. Vanguard fund options include four taxable Vanguard money market funds and six tax-exempt Vanguard Prime money market fund options. Depending on your needs, any of these are likely to fit your requirements.

Of course, Vanguard money market funds, like any money market funds, are not FDIC insured like a regular money market savings account. They compensate for this by generally returning higher (and more variable) interest returns and giving faster and easier access to the money held within them. A Vanguard fund is, of course, a risk like any other, but Vanguard money market investments tend to perform safely, especially those dealing mostly in state and federal bonds and treasuries.

So if you’re interested in what Vanguard Prime Money Market Fund options can do for you, you’ll definitely want to look closer at the Vanguard fund website.