It’s important to research a money market fund before investing. The best source is generally a prospectus that outlines the fund’s strategy, past performance, management, and financial information. The prospectus will also offer valuable information about any expenses and fees.
There’s a place for money market funds in a number of portfolios, especially for investors who need a low-risk, short-term place to park money. But smart investors will follow a long-term, buy-and-hold strategy that focuses on companies with strong financial fundamentals, competitive advantages, and a bright future.