PRCXX, or the Federated Hermes Prime Cash Obligations Fund, is not FDIC insured. This means that the fund is not guaranteed by the Federal Deposit Insurance Corporation, and investors could lose money if the fund fails.
The fund is a money market fund, which invests in short-term debt securities. While these securities are generally considered safe, they are not risk-free. Money market funds are subject to credit risk, interest rate risk, and liquidity risk.
Here are some key points to remember:
- PRCXX is not a bank account: It is an investment fund, and its value can fluctuate.
- PRCXX is not backed by the government: Unlike bank deposits, which are insured by the FDIC, investments in PRCXX are not guaranteed.
- PRCXX is subject to market risk: The value of the fund can go down as well as up.
If you are looking for a safe and FDIC-insured place to keep your money, you should consider a bank account or a certificate of deposit.
