Money Market Fund
Money market funds are a type of mutual fund that invest in liquid, short-term debt securities, cash and cash equivalents. Money market funds have relatively low risks compared to other mutual funds and most other investments, but historically have had lower returns. Money market funds pay dividends that generally reflect short-term interest rates. Many investors use money market funds to store cash or as an alternative to bank savings vehicles.
Concept at a glance
Definition and explanation
Money market funds are a type of mutual fund that invest in liquid, short-term debt securities, cash and cash equivalents. Money market funds have relatively low risks compared to other mutual funds and most other investments, but historically have had lower returns. Money market funds pay dividends that generally reflect short-term interest rates. Many investors use money market funds to store cash or as an alternative to bank savings vehicles. [1]
Before investing in a money market fund, you should carefully read the fund’s available information , including its prospectus and its most recent shareholder report. [1]
Source-supported connections
Frequently asked questions
What does Money Market Fund mean in the cited reference?
Money market funds are a type of mutual fund that invest in liquid, short-term debt securities, cash and cash equivalents. Money market funds have relatively low risks compared to other mutual funds and most other investments, but historically have had lower returns. Money market funds pay dividends that generally reflect short-term interest rates. Many investors use money market funds to store cash or as an alternative to bank savings vehicles. [1]
Money Market Fund connection map
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Links retain their source-specific meaning. Award-time affiliations and links to related reading are not claims about current appointments or economic causation.
Sources and review dates
Reviewed 23 October 2026. Historical dates and award-time affiliations retain their original context. A review date is not an event date. Background sources are identified separately from official records.