Money Market Fund

What Does Money Market Fund Mean?
An investment fund that holds the objective to earn interest for shareholders while maintaining a net asset value (NAV) of $1 per share. Mutual funds, brokerage firms and banks offer these funds. Portfolios are comprised of short-term (less than one year) securities representing high-quality, liquid debt and monetary instruments.

Investopedia explains Money Market Fund
A money market fund's purpose is to provide investors with a safe place to invest easily accessible cash-equivalent assets characterized as a low-risk, low-return investment. Because of their relatively low returns, investors, such as those participating in employer-sponsored retirement plans, might not want to use money market funds as a long-term investment option.

Filed Under: Mutual Funds, Retirement

Related Terms

Breaking The Buck
Broke The Buck
Flight To Quality
Money Market
Money Market Account
Mutual Fund
Net Asset Value
No-Load Fund
Operational Efficiency
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