Money Market Funds

Description
Money market funds are actually mutual funds that consist of short-term money market securities. Money market securities include T-bills, federal agency notes, commercial paper, CDs and repurchase agreements. Government money market funds do not invest in commercial paper or CDs. Money market funds are required to keep their average maturity below 90 days.

Objective
To maintain a constant $1 per share net asset value and to provide a higher yield than traditional savings vehicles.

Suitability
Money market funds are suitable for nearly all investors because of their high degree of stability of principal and liquidity.

Product Features

• Liquidity - Money market funds offer quick access to funds through check writing, a no-annual-fee debit card or redemptions.
• Limited Risk - Money market funds offer a diversified portfolio of short-term investments along with professional management.
• Yield - Money market dividends are normally compounded monthly, and yields are generally higher than on comparable highly liquid accounts. Because of this, money market funds are an attractive place to park money until you decide which investment route to take.
• Tax-free Income - Some money markets provide federally tax-free income, although they may be subject to the alternative minimum tax.
• No Growth of Principal - Since money market funds strive to maintain a constant net asset value, no growth of principal is possible.
• Interest-rate Sensitive - Due to the short maturities of money market funds, they may be more sensitive to interest rate changes.
• No Insurance - Although money markets are considered very safe, most are not insured.

Important information about money market funds

Checkwriting Services Agreement (pdf)

For more information about money market funds, please contact your local financial advisor.

An investment in Money Market Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund is managed to maintain a stable new asset value of $1 per share, the value of the fund may fluctuate, and could lose money.

The underlying investment for the accounts is a money market fund. Your Edward Jones financial advisor can provide a prospectus, which contains more complete information, including the funds investment objectives, risks, charges and expenses that should be carefully considered. You should read the prospectus carefully before you invest or send money.