United States Treasury Money Mutual Funds

AAA

DEFINITION of 'United States Treasury Money Mutual Funds'

An investment fund that pools money from investors to purchase short-term, low-risk securities. A United States Treasury Money Mutual Fund is a type of mutual fund that invests primarily or exclusively in U.S. Treasury bills and repurchase agreements secured by Treasury bills. Each of these investments must meet standards described by the Securities and Exchange Commission (SEC) for credit quality, liquidity and diversification. Most investors who participate in a U.S. Treasury Money Mutual Fund do so to preserve principal, or who need a place to invest cash temporarily.

INVESTOPEDIA EXPLAINS 'United States Treasury Money Mutual Funds'

Since a U.S. Treasury Money Mutual Fund is a low-risk investment, its yields are correspondingly low. Treasury bills are secured by the full faith and credit of the United States Treasury, and are considered very low-risk investments because of the country's history of economic and political stability. These mutual funds typically calculate net asset value (NAV) once per day, usually following the close of the U.S. financial markets. The funds are invested with a goal of maintaining a net asset value per share of one dollar. As of May 2010, 9% of all U.S. mutual funds are money market funds.

RELATED TERMS
  1. Bond

    A debt investment in which an investor loans money to an entity ...
  2. United States Longshore And Harbor ...

    A program administered by a division of the United States Department ...
  3. Bond Rating

    A grade given to bonds that indicates their credit quality. Private ...
  4. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  5. U.S. Savings Bonds

    A U.S. government savings bond that offers a fixed rate of interest ...
  6. Treasury Bill - T-Bill

    A short-term debt obligation backed by the U.S. government with ...
Related Articles
  1. Bonds & Fixed Income

    The Treasury And The Federal Reserve

    Find out how these two agencies create policies to stimulate the economy in tough economic times.
  2. Options & Futures

    Top 6 Uses For Bonds

    We break down the stodgy stereotype to see what these investments can do for you.
  3. Personal Finance

    Get A Short-Term Advantage In The Money Market

    This investment vehicle is often the perfect stop-gap measure for growing your money.
  4. Active Trading

    Buy Treasuries Directly From The Fed

    If you want government securities, go straight to the source. We'll show you how.
  5. Bonds & Fixed Income

    The Money Market: A Look Back

    Learn how past inflationary periods can predict future real rates of return for cash investments.
  6. Retirement

    The Money Market

    If your investments in the stock market are keeping you from sleeping at night, it's time to learn about the safer alternatives in the money market.
  7. Mutual Funds & ETFs

    How To Apply Technical Indicators To Mutual Funds

    Mutual funds do not readily lend themselves to technical analysis, but investors can use common indicators to evaluate mutual funds as easily as stocks.
  8. Bonds & Fixed Income

    Should Junk Bond ETFs Be a Part of Your Portfolio?

    Should junk bonds be a part of your portfolio? Here's what you need to know.
  9. Investing Basics

    What is an Asset Class?

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same laws and regulations.
  10. Professionals

    Vanguard Readies Muni Bond ETF

    Vanguard is set to roll out a muni bond ETF, the firm's first.

You May Also Like

Hot Definitions
  1. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  2. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  3. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  4. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  5. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  6. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
Trading Center