Are momentum funds risky?
No, money market funds are not 100% safe or federally insured against loss, though they are considered very low-risk investments. Unlike standard bank savings accounts or money market deposit accounts protected by the Federal Deposit Insurance Corporation (FDIC) up to $250,000, money market mutual funds are offered by investment companies and invest in short-term debt securities. While they strive to maintain a stable net asset value (NAV) of $1.00 per share, extreme market disruptions can theoretically cause a fund to "break the buck," meaning investors could lose a portion of their principal investment.
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