The risks in the money market

[Starmix]

If you are doing this, I am so sure you know the risks or have experienced them. Money market investments are generally considered low risk, but they are not entirely without risks.

These are the possible risks in the money market:

• Interest rate risks;
• Inflation risks;
• Credit risks;
• Reinvestment risks;
• Liquidity risks;
• Regulatory risks;
• Management risks, and
• Systemic risk.

Money markets are considered safe; they are still part of the broader financial system. A major financial crisis could potentially impact money market funds, although regulators take steps to minimize the risk.