1. What is Money Market Fund Return?

The Money Market Fund Return calculates the percentage gain or loss on an investment in a money market fund, comparing the future value to the original principal amount.

2. How Does the Calculator Work?

The calculator uses the return formula:

Where:

• \( FV \) — Future Value of the investment
• \( Principal \) — Original investment amount

Explanation: The formula calculates the percentage change between the final value and the original investment.

3. Importance of Return Calculation

Details: Calculating return helps investors assess the performance of their money market fund investments and compare them with other investment options.

4. Using the Calculator

Tips: Enter the original principal amount and the current or future value of your investment. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is a good return for money market funds?
A: Money market funds typically offer lower returns than riskier investments, with current yields often close to short-term interest rates.

Q2: How often should I calculate my return?
A: Regular monitoring (monthly or quarterly) helps track performance, though money market funds are generally stable.

Q3: Does this calculator account for fees?
A: No, this calculates gross return. For net return, subtract any fees from the future value before calculation.

Q4: Can this calculator show negative returns?
A: Yes, if the future value is less than the principal, it will show a negative percentage (loss).

Q5: Is this return annualized?
A: No, this shows total return for the investment period. For annualized return, you'd need to know the time period.