Preservation of capital with a focus on asset stability. This stability is achieved through strict adherence to regulatory guidelines that limit the credit risk and average maturity of the underlying holdings, ensuring the fund remains a low-risk parking spot for capital.
Effective Risk Control Strategies for Fidelity High Yield Money Market Funds
Unlike standard savings accounts, this fund typically offers a higher return by investing in short-term, high-quality debt instruments issued by governments and corporations. These instruments usually mature in less than 13 months, which distinguishes them from longer-term bond funds.
Treasury securities, repurchase agreements, and certificates of deposit issued by highly rated banks. Additionally, the fund provides a yield that often surpasses that of standard savings accounts or money market deposit accounts (MMDAs) offered by banks.
Implementing Risk Control Measures for Stability
The fund typically invests in a mix of U. Investors should consider the impact of taxes on the effective yield when evaluating the fund's true return.
More About Fidelity high yield money market
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