How to Invest in Money Market Accounts

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Investing in money market accounts allows money to be put into a mutual fund that buys a variety of different bonds for the fund portfolio. Read the terms of a money market account agreement to understand where your money is going with help from an investment consultant in this free video on investing.

Part of the Video Series: Investment Advice
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Video Transcript

Hi I'm Roger Groh of Groh Asset Management. What do you do with your cash? Let's say you have a savings account or you have a checking account or an investment account and there is excess cash in there, what are you doing with it? Well typically it goes to a money market investment account. Do you know what that really is? Well we're here today to talk about it. And what it really is is a mutual fund that takes your cash along with the cash of many other investors around the country and around the world, pulls it together and goes out and buys bonds for the portfolio. Now different money market funds or investments have different strategies. Some money market funds buy corporate bonds and some money market funds buy government bonds, some money market funds specialize in very short term, some buy long term, so you have to read the prospectus because each one's different. Be very careful, not all money market instruments or investment accounts are guaranteed by the US government. Some are, but not all. You need to be very clear about the risks that are associated with each. I'm Roger Groh, that's a little bit about investing in money markets, hope it helped.

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