Cash Alternatives

Assets that can be easily converted into cash and have a very low risk of price fluctuation are considered liquid assets. For instance, money market funds are often viewed as cash alternatives. However, it's important to note that the money held in money market funds is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. While money market funds aim to maintain the value of your investment at $1.00 per share, there is still a possibility of losing money when investing in these funds.