A money market fund is a type of mutual fund that primarily invests in short-term, highly liquid, and low-risk instruments. These instruments typically have a maturity period of one year or less and include treasury bills, commercial paper, certificates of deposit, and other short-term debt securities. Money market funds aim to provide investors with a stable and relatively safe investment option while still generating modest returns. They are considered to be low-risk investments and are often used as a cash management tool by individuals and institutional investors seeking a higher yield than traditional savings accounts or certificates of deposit.
Schedule a Complimentary Consultation.