Money market funds

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For money market funds is investment funds that exclusively or primarily in money market instruments and liquid securities investments with a short remaining term. These include time deposits , borrower's note loans and bonds with a term of less than 12 months.

Only institutional investors - primarily banks , insurance companies and the state - are active in the classic money market . Money market funds are mainly used by large investors - for example companies - to “park” their funds for a short time , as they can be returned every trading day. In order to reduce the risk of default by individual debtors, securities from different issuers are diversified. By buying units in money market funds, private investors also gain indirect access to the money market.

Compared to overnight money accounts , money market funds may incur additional costs:

Money market funds were first approved in Germany in 1994.

In principle, it should be noted that money market funds also bear both a certain interest rate risk and a credit risk for the issuer. If the issuers are countries with high credit ratings, this is usually comparatively low, but can never be ruled out. In the context of the financial crisis from 2007 onwards , money market funds, which had previously been considered stable, also experienced negative performance.

Individual evidence

  1. Deutsche Bundesbank: Glossary: ​​Money Market Fund ( Memento of the original from September 8, 2013 in the Internet Archive ) Info: The archive link has been inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. @1@ 2Template: Webachiv / IABot /
  2. Handelsblatt online: The 0.08% return problem
  3. Disappoint money market funds