Tag Archives: dividends

Difference between Yield and Return?

investment piggybank,yield and return

Do not confuse the two terms.

Return

What an investor has actually earned on an investment during a certain time period in the past.
Total return includes dividends and capital gains that the fund distributes to shareholders. A mutual fund incurs capital gains when it sells some of its portfolio holdings to lock in profits or redeem fund shares.

Money market fund : Safest and most secure

A Money market fund, also known as principal stability funds, is a type of mutual fund that is required by law to invest in low-risk securities. These funds have relatively low risks compared to other mutual funds and pay dividends that generally reflect short-term interest rates.

Money market funds generally invest in

  • Government securities
  • Certificates of deposits