Money Market Fund
Making your cash work harder
Whether you invest in municipal bonds or taxable bonds, today’s higher rate environment means investors can make their money work harder.
Learn MoreInstitutional strategy for individual investors
Think of cash segmentation as asset allocation for your cash, a strategy that sophisticated institutions use to separate cash balances by investment horizon and liquidity needs. The same approach can help individual investors increase income potential while ensuring the primary objective of their cash holdings—stability—is appropriately maintained.
Determine
How much cash do you need for day-to-day spending (your personal “operating cash”) and how much can be invested over a longer horizon.
Define
How much should you allocate to each asset class to meet your specific needs?
Decide
Select the right investment solutions for your investment objectives and timeline.
Day-to-day needs
0-3 months horizon
Money market funds
These funds invest in high-quality securities, offer daily liquidity, and have a weighted average maturity of 60 days or less. Prime funds invest in corporate debt while government funds invest in treasury and agency debt. Government and retail funds transact at a constant $1 net asset value
Excess cash
3-12 months horizon
Ultrashort duration funds
These funds serve as the first step out of the yield curve, with durations of less than a year. They offer the potential for increased yield relative to money market funds, with low sensitivity to interest rates.
Strategic cash
12+ months horizon
Short-duration funds
With durations usually between one and three years, short-term funds may further improve yields. Rate sensitivity increases slightly compared to other buckets but may still be lower than core bond funds with longer durations.
Additional Resources
Learn more about cash segmentation's potential to offer stability while offering income opportunities
Discover more
Learn about the additional investment solutions and support Invesco can provide.
Invesco Fixed Income
Invesco has many fixed income strategies to help you meet your goals, including taxable bonds, tax-free municipals, mutual funds, ETFs, and SMAs.
Portfolio Playbook
Get timely investment ideas, an overview of what’s happening in the markets, and tips to help optimize your portfolios in our monthly playbook.
Disclosure
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1.
Invesco Government Money Market Fund
You could lose money by investing in the Fund. Although the Fund seeks to preserve your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor is not required to reimburse the Fund for losses, and you should not expect that the sponsor will provide financial support to the Fund at any time, including during periods of market stress.Invesco Premier Portfolio
You could lose money by investing in the Fund. Although the Fund seeks to preserve your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund may impose a fee upon the sale of your shares. The Fund's sponsor is not required to reimburse the Fund for losses, and you should not expect that the sponsor will provide financial support to the Fund at any time, including during periods of market stress.
Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa. An issuer may be unable to meet interest and/or principal payments, thereby causing its instruments to decrease in value and lowering the issuer’s credit rating.
There are risks involved with investing in ETFs, including possible loss of money. ETFs are subject to risks similar to those of stocks.
