1. What is Etica Money Market Fund?

The Etica Money Market Fund (MMF) is a type of mutual fund that invests in short-term, high-quality debt securities. It offers investors a relatively safe place to invest easily accessible cash-equivalent assets while earning monthly interest.

2. How Does the Calculator Work?

The calculator uses the Etica MMF monthly interest formula:

Where:

• \( Principal \) — Initial investment amount
• \( Rate \) — Annual interest rate (in percentage)
• \( 12 \) — Number of months in a year

Explanation: The formula converts the annual rate to a monthly rate by dividing by 12, then applies it to the principal amount.

3. Importance of Monthly Interest Calculation

Details: Calculating monthly interest helps investors understand their expected returns, compare different investment options, and plan their cash flow.

4. Using the Calculator

Tips: Enter the principal amount in dollars and the annual interest rate in percentage. All values must be valid (principal > 0, rate > 0).

5. Frequently Asked Questions (FAQ)

Q1: How often is interest paid in Etica MMF?
A: Interest is typically calculated daily and paid monthly.

Q2: Is the principal amount guaranteed?
A: While MMFs are relatively safe, they are not guaranteed and are subject to market risks.

Q3: How does this differ from a savings account?
A: MMFs may offer higher yields than savings accounts but are not FDIC insured.

Q4: Are there fees associated with Etica MMF?
A: Management fees may apply; check the fund's prospectus for details.

Q5: Can I withdraw my money at any time?
A: Most MMFs allow withdrawals at any time, but check the specific terms.