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What are Money Market mutual funds?

Money Market mutual funds are a type of mutual fund that invests in short-term, low-risk securities such as Treasury bills, certificates of deposit, and commercial paper. These funds are designed to provide investors with a low-risk, easily accessible place to invest their cash reserves and earn a small return on their investment.

Money Market mutual funds are managed by professional investment managers who aim to maintain a stable net asset value (NAV) of $1 per share. They do this by investing in securities with short-term maturities and high credit quality, which helps to minimize the risk of default.

Investors can buy and sell shares of Money Market mutual funds at any time, and the funds typically provide a high level of liquidity, making them an attractive option for investors who need to access their cash quickly.

Money Market mutual funds are often used as a cash management tool for individuals and businesses, as well as a short-term investment option for investors who want to earn a small return on their cash reserves without taking on too much risk.