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.