Scribd
Upload
106 views3 pages

What Are The Pros and Cons of Investing in The Money Market?

The document discusses the pros and cons of investing in the money market. Some pros are that the money market provides opportunities to earn returns above inflation levels and allows investors to easily buy and sell relatively liquid assets in a short time period. However, some cons are that investing in the money market may reduce purchasing power if returns are lower than inflation, and investments are not guaranteed by the government like bank accounts. In the end, the document recommends that investors choose investments matched to their risk tolerance, with less risky money market investments for beginners and longer term stock market investments for more experienced investors.

Uploaded by

Franciska Adelia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
106 views3 pages

What Are The Pros and Cons of Investing in The Money Market?

The document discusses the pros and cons of investing in the money market. Some pros are that the money market provides opportunities to earn returns above inflation levels and allows investors to easily buy and sell relatively liquid assets in a short time period. However, some cons are that investing in the money market may reduce purchasing power if returns are lower than inflation, and investments are not guaranteed by the government like bank accounts. In the end, the document recommends that investors choose investments matched to their risk tolerance, with less risky money market investments for beginners and longer term stock market investments for more experienced investors.

Uploaded by

Franciska Adelia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Nama : Imro’atul Azizah

NIM : 18510178
Class : English Language D
What are The Pros and Cons of Investing in the Money
Market?
Investment is a fund placement activity on productive
assets in hopes of raising cash as a result of the asset's
value growth, within a period of time. Everyone needs
to make an investment because the value of our money
will continue to shrink inflation. Before investing one
should know the purpose of investing. In selecting
investments, we should be careful. We must know the Simple Present
risks of each investment we will choose, because not all Tense
benefit investors. One of them you can invest in the
Issue
money market. The market is where sellers and buyers
meet with items traded in the form of securities in a
short period of time or less than a year. The money
market may also be called the short-term credit market.
In addition to the money market, a foreign Valuta
would be required to pay for import export activities
and foreign debt. Yet, in reality many people hesitate Modalities
about investing through the money market because they
think they are losing money and can't get a big profit.

However, many people and investors have pros and


cons linked to the advantages and deficiencies in
investing in the money market. In terms of profit,
investing in money markets is one of the best places to
Supporting park money. As the stock market volatility is high and
Points investors can co-invest in the money market. - why?
Because money markets are often considered less risky
than stocks and bonds. The assumption is that the Additive,
Supporting Contrastive,
market fund generally invest in low risk finance
Points Casual
instruments, such as deposit certificates, short-term Connection
and
Consequence
debt papers guaranteed by governments and other
short-term debt papers. So, when we want to take
money from time to time, it'll be easier. In some
monetary market instruments can produce returns that
beat the level of inflation. Then it can also use our idle
money to generate profit. Moreover, the hedge funds of
money do not always invest in securities with limited
transaction volume or actors. In fact, it is usually
checked to a valued entity or letter that is quite high
(like T-bills). Which suggests they tend to be more
liquid, and investors can buy and sell relatively easily.
In terms of time, money markets are generally
exploited for short-term savings, whether by investors,
financial institutions, non-financial companies, and
other participants. These short-term funds mean less
than a year. In the money market, the highest authority
holder is Bank Indonesia and tips will be given in the
form of bank interest.

The cons related to losses in investment in the money


market. One of them can reduce your spending power.
If an investor produces 3% of the money market
account, then at the same time inflation reaches 4%, at
the base the investor experiences a decline in
purchasing power every year. From time to time,
investing in money markets can make a person poorer,
Contrasting in the sense that the money they earn is of little value
Points compared to the cost increase. Furthermore, it is
probably not protected by the preservation society. It
means that the bank's bank accounts are guaranteed by
a specified number of deposits. However, the mutual
fund market is not guaranteed by the government. This
means that while the mutual fund may be considered a
safe place to invest funds and invest in the money
market, the capital invested more than in the capital
market.
In my opinion, every investment has a risk borne alone
by investors. Depends on an investor who wants to
invest very little risk or a very large risk investment.
Does not predispose in will or long-term investments.
As professional investors we must be careful to select
and sort out the benefits of investing either in the
Language of
Conclulusion
money market or in the stock market. If we do not yet discussion and
and
have the courage to invest in the long run, as beginners words of
Recomendatio
thought
n you could start an investment with a short-term in the
money market. If you already have enough knowledge
you could invest in the long term as in the stock market.
I hope that if you want to make an investment, first
understand what a good investment is for the present,
the future and the risks that will be borne in investing.

You might also like