Money Market Fund NAV Mechanism
Real-time NAV Maintenance Simulation
Fund NAV: $1.00
Accrued Interest: $0.0000
Market Value Fluctuation: $0.0000
Key Maintenance Mechanisms:
1. Short Duration Securities
Holdings: 0-3 month Treasury bills
Avg. Maturity: < 60 days
2. Interest Accumulation
Daily interest accrual offsets minor market fluctuations
3. Active Management
Portfolio managers maintain weighted average life (WAL) < 120 days
How the $1 NAV is Maintained:
The $1 net asset value is preserved through:
- Minimal interest rate risk (short duration)
- Daily income accrual
- Frequent security rollovers
- Amortized cost accounting
- Constant maturity management