What are the Benefits of Prime Money Market Funds?
1. Liquidity: One of the primary advantages is quick access to funds. Investors can readily redeem their shares without significant delay. 2. Safety: These funds invest in high-quality, short-term instruments, making them relatively safe compared to other investment options. 3. Higher Yields: Prime money market funds generally offer higher yields than savings accounts and traditional money market accounts. 4. Diversification: By pooling resources, these funds provide diversification, reducing the risk associated with individual investments.