Bruce R. Bent II thinks everyone with disposable income should invest in a money market fund. Why? Because wide risk diversification minimizes the risk of loss, and this is the type of investment everyone needs.
Money market funds are investment funds that invest almost exclusively in short-term investments, and are considered safe and valuable due to their short duration. A money market fund invests the money paid into securities with a maturity of up to 12 months. Due to the wide spread of risk, the chances of losing money from money market funds is lower. Due to the short remaining term of the debt securities included in the fund’s assets, money market funds virtually do not have any price risks. Their return is almost exclusively influenced by the level of the short-term interest rate. If this remains constant, its value increases practically continuously, but with a very low rate of increase.
This is one of the reasons Bruce Bent II suggest individuals invest in money market funds. This type of investment is particularly suitable if investing funds that are to be available at short notice. Money market funds are an interesting variant for investing indirectly in the money market. The advantages: The credit is available daily and the risks are manageable.
How Do You Minimize Loss?
Open-ended funds with short maturities are invested in several companies. This is used to control the risk of loss because it is unlikely that all companies involved in a fund will experience losses at the same time. Of course, with any investment, there are always chances for loss, however, money market funds minimize those chances.
Bruce Bent II, CEO and President of Double Rock Corporation, specializes in research-based methods that rapidly analyze cost management to improve the margin, and produce optimal outcomes. Bent has more than three decades of experience, particularly in operations & risk management, cost/benefit analysis, and needs assessment, which has enabled him to seize vast opportunities.
Bent is best known for creating money market funds. With a bachelor’s degree in Economics from St. John’s University, he began his Wall Street career. Over the past 50 years, Bruce Bent has held several leadership positions at LF Rothschild & Company, TIAA-CREF, Brown & Bent, and currently, he heads up Double Rock Corporation in New York, focusing on utilizing core strengths.
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