Not exact matches
Since the crisis, however, the Fed has
come to treat repos, and particularly overnight reverse repos (ON RRPs) with
Money Market Mutual Funds and GSEs, as a means for securing long - term monetary control.
Approximately $ 7,300 is required to purchase the ETFs4, $ 5,000 of which will
come from the 2010 Roth IRA contribution, and the remainder will
come from selling some of the existing Roth IRA
mutual fund shares (technically, there will be an exchange from the stock
mutual funds into the
money market mutual fund, and then
funds in the
money market fund will be used to buy the ETFs).
The benefits to having leveraged exposure to the
market through
mutual funds is similar to the benefits of non-leveraged
mutual funds, but they also allow an investor to build wealth using other people's
money, boost their returns, and allow for interest deductions
come tax time.
Since
mutual fund prospectuses clearly state that the value of the units of
mutual funds will fluctuate, no
mutual fund company is under any obligation to make good your loss should the
money market fund's unit value slip below what we've
come to think of as the norm.
Money market mutual funds usually
come with -LSB-...]
In addition to the chance that we'll choose poorly and underperform the broader
market, stock picking
comes with way more risk than investing in
mutual funds, because it concentrates your
money in just a couple investments.