In the wake of Silicon Valley Bank’s collapse and subsequent banking meltdown, cash is king. The turmoil inflicted on financial markets has sent cautious investors running away from volatile markets and toward more liquid alternatives.
Money market funds, widely thought to be one of the safest, lowest-risk investment options, have seen an influx of cash in recent weeks as investors look for more stable ground.
These funds invest in short-term securities like government bonds, certificates of deposit — or fixed-term savings accounts — and commercial debt. The goal of a money market fund is to provide investors with a relatively stable investment option that offers higher returns than traditional savings.