 The bond market appears to have accepted the potential of a higher for longer interest rates environment following the September meeting of the Federal Reserve's Monetary Policy Committee and other recent comments from central bank officials. Here are seven of the best money market funds to buy now. 1. Not Capital Treasury Money Market Fund. Acronym NCGXX. Investors looking for the best money market fund should weigh fees as a primary consideration. High fees can directly eat up the net returns paid by a fund and cause a significant drag on performance. By screening for low fees, investors can easily address a common risk that contributes to long-term underperformance. When it comes to low fees, few market funds can match NCGXX. Currently, the funds manager has implemented an indefinite fee waiver to bring its annual expense ratio to 0%. Make it age virtually free to invest in. As a Government Money Market Fund, NCGXX primarily invests in Treasury Bills and Repurchase Agreement collateralized by cash or government issued securities. Currently, investors can expect a 5.4% 7-day Sec yield. 2. Fidelity Money Market Fund. Acronym SPRXX. Investors on Fidelity's brokerage platform can easily purchase SPRXX, which charges no transaction fees and does not require a minimum initial investment. As a primary money market fund, SPRXX is also able to invest in corporate securities like commercial paper in addition to the usual Treasuries, Certificates of Deposits and Repurchase Agreement to try and boost its yield. The main advantage of SPRXX poses its long track record at a high asset under management. With an inception date of January 23, 1989 and a current share class home of $9.5 billion, investors have assurance that this fund is properly managed and well-capitalized. However, the high expense ratio of 0.42% may be off-putting to cost-conscious investors. SPRXX pays a 5.06% 7-day Sec yield. 3. Fidelity Government Money Market Fund. Acronym SPRXX. SPRXX is fairly safe and has withstood many market downturns, but its holding of commercial paper does add a higher degree of credit risk. Investors looking to minimize the probability of default can opt for a government money market fund like SPAXX. This fund only holds government-issued treasuries, floating-rate securities and repurchase agreements. The downside of this is a slightly reduced 7-day Sec yield of 5%. Historically, SPAXX has also underperformed SPRXX over the past 10 years. Returning an annualized 0.9% versus 1% as of September 30. Still, risk-averse investors prioritizing safety above all with their money may prefer to sacrifice a bit of yield in exchange for higher credit quality. SPAXX also charges a 0.43% expense ratio. 4. Schwab Value Advantage Money Fund. Acronym SWVXX. This fund undercuts Fidelity's main money market fund, offering with a lower 0.34% expense ratio and also features no minimum required investments. As a primary money market fund, SWVXX is able to hold commercial paper, time deposits, bank notes, and certificates of deposits in addition to the usual treasury bills and repurchase agreements. From its inception in April 30, 1992, SWVXX has returned an annualized 2.4% with all distributions reinvested. While this may be modest, keep in mind that this was during a period of low interest rates. With rates much higher at present, the fund is now paying out an attractive 5.2% 7 days sec yield with very low risk. 5. JP Morgan Prime Money Market Fund. Acronym VMVXX. Another money market fund that has attracted a high amount of investors is VMVXX. Since its inception on November 15, 1993, this fund has swelled to around $7.4 billion in AUM. As a prime money market fund, VMVXX holds a full range of treasury bills, repurchase agreements, floating rate notes, commercial paper, certificates of deposits, and asset-backed securities. That being said, this fund has some disadvantages that make it less attractive than the previous options. For instance, there is a minimum initial investment requirement of $1,000 and subsequent investments have to be at least $50. The fund also charges a fairly high 0.5% expense ratio, making it more expensive than even SPRXX. As present, investors can expect a 5.3% 7 days sec yield. 6. Vanguard Federal Money Market Fund. Acronym VMVXX. NCGXX may be offering a 0% expense ratio, but keep in mind that it's in place due to a waiver. Although the fund manager expects it to continue indefinitely, there is no guarantee. Investors looking for another time-tested money market fund with low fees may like VMVXX, which currently charges a 0.11% expense ratio and pays a 5.26% 7-day sec yield. As a Government Money Market Fund, VMVXX holds reportage agreements, Treasury obligations, and Treasury bills, with 155 holdings at present at an average maturity of just 20 days. With around $265 billion in AUM, this fund is extremely popular and well-capitalized. However, keep in mind that to buy VMVXX, there is a $3,000 minimum investment requirement. 7. Vanguard Municipal Money Market Fund. Acronym VMVXX. Like most investments, the interest paid out by money market funds is subject to taxation if held outside the tax advantage account like the ROOT IRA. For investors in high-income tax brackets, this can result in a significant drag on their returns. To mitigate this, investors can consider a municipal money market fund like VMSXX, which offers potentially greater tax efficiency. This is because the underlying holdings in the funds are themselves exempted from federal personal income taxes. Otherwise, the fund acts as a normal money market fund does, maintaining a stable NAV per share of $1. VMSXX currently pays a 4.7-day sec yield and charges a 0.15% expense ratio. Thanks for watching. See you in the next video.