Money Market Funds

Money market funds are considered cash equivalent investments that strive to maintain their value at $1 per share. Though more price-stable than stock or bond funds, they are not designed for long-term growth, as the interest earned in these funds is comparable to certificates of deposit or bank money market accounts. However, unlike bank products, money market funds aren't FDIC insured.

Most money market funds are extremely liquid and allow you to write checks against your account. There is usually no charge for this service, though there may be a minimum check amount, which is typically $500. And, because the fund's value stays at $1 per share, there are no capital gains or losses when you withdraw money. Money market funds are not available for transfer or purchase at Scottrade.

Investors should consider the investment objectives, risks, charges, and expenses of a mutual fund carefully before investing. A prospectus contains this and other information. A mutual fund prospectus is available through or through a Scottrade branch office. The prospectus should be read carefully before investing.

The information and content provided in the Scottrade® Knowledge Center is for informational and/or educational purposes only. The information presented or discussed is not, and should not be considered, a recommendation or an offer of, or solicitation of an offer by, Scottrade or its affiliates to buy, sell or hold any security or other financial product or an endorsement or affirmation of any specific investment strategy. You are fully responsible for your investment decisions. Your choice to engage in a particular investment or investment strategy should be based solely on your own research and evaluation of the risks involved, your financial circumstances and your investment objectives. Scottrade, Inc. and its affiliates are not offering or providing, and will not offer or provide, any advice, opinion or recommendation of the suitability, value or profitability of any particular investment or investment strategy.