May 29, 2005 16: 52 Source: cathay pacific fund.
Tax money market fund: it mainly invests in short-term and high-grade money market securities with a maturity of less than 90 days. Divided into:
Government tax money market funds mainly invest in US government bonds and other financial products guaranteed by the government.
Non-government tax money market funds mainly invest in non-government money market instruments such as commercial paper and negotiable certificates of deposit.
Tax-free money market funds: mainly invest in government securities with an average maturity of 90 days. They don't have to pay federal taxes, and sometimes they can be exempted from state and local taxes. Divided into:
National tax-free money market funds invest in short-term securities issued by local governments in the United States.
A state-specific tax-free money market fund that invests in short-term securities issued by the state government.