Where investment money?

Investment is the act of committing money or capital to an endeavor with the expectation of obtaining income or profit. Investment can also mean a person who makes an investment.

Investment is one of the most common ways to accumulate wealth. Investments are typically used as a hedge against inflation, as well as for generating income in a more risk-averse manner than other forms of investment.

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Money market mutual funds are not the same as money market accounts. Money market accounts are bank deposit accounts, which serve a similar purpose to savings accounts. When you invest in a money market fund, your money is allocated among many different bonds. These may include high-quality, short-term government debt or bank debt.

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A government bond is a loan from you to the government. It pays out interest to give you your money back, but has an expiry date. Because of that steady stream of payments, bonds are known as a fixed-income security. Government bonds are a safe investment as they are backed by the US government and its full faith credit.

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