Liquidating a mutual fund
They often provide a higher yield than a passbook savings account and can be competitive with money market funds, but may have limited transactions or minimum balance requirements. government stepped in and offered to insure any money market fund, giving rise to the expectation that it would do so again if another such calamity were to occur.
The Bottom Line Prior to the 2008 financial crisis, only one small institution fund broke the buck in the preceding 37 years. It's easy to conclude then that money market funds are very safe and a good option for an investor that wants a higher return than a bank account can provide, and an easy place to allocate cash awaiting future investment with a high level of liquidity.
It explains when and how to show these items on your tax return.
It also explains how to determine and report gains and losses on the disposition of investment property and provides information on property trades and tax shelters.
Investing in a money market fund is a low-risk, low-return investment in a pool of very secure, very liquid, short-term debt instruments.Find out how this happens and what you can do to keep your "risk-free" assets truly risk free Insecurity in the Market Even though investors are typically aware that money market funds are not as safe as a savings account in a bank, they treat them as such because, as their track record shows, they are very close.