Money Fund Risks Sample Clauses
The 'Money Fund Risks' clause defines and discloses the specific risks associated with investing in money market funds. It typically outlines potential issues such as the possibility of loss of principal, changes in interest rates, liquidity constraints, or the fund's inability to maintain a stable net asset value. By clearly informing investors of these risks, the clause ensures transparency and helps investors make informed decisions, thereby addressing the problem of inadequate risk awareness in money fund investments.
Money Fund Risks. Money Funds are securities that may increase or decrease in value. In general, Money Funds are designed and managed with the objective of preservation of capital and maintenance of liquidity, but unlike bank deposits, an investment in a Money Fund is not insured by the FDIC or any other government agency, and there can be no assurance that such funds will be able to maintain a stable net asset value of $1 per share. It is possible to lose money by investing in a Money Fund, including loss of principal. In addition, certain Money Funds may temporarily suspend your ability to sell shares if the fund’s liquidity falls below required minimums because of market conditions or other factors.