What is the downside of a money market account?
Some disadvantages are low returns, a loss of purchasing power, and that some money market investments are not FDIC insured.
Can money market funds lose money?
Money market funds seek stability and security with the goal of never losing money and keeping net asset value (NAV) at $1. This one-buck NAV baseline gives rise to the phrase “break the buck,” meaning that if the value falls below the $1 NAV level, some of the original investment is gone and investors will lose money.
How do I put money in a money market fund?
Investors can purchase shares in money market mutual funds directly from brokerage companies or mutual fund firms, just as they would purchase shares in a stock or equity mutual fund.