Money Market Fund (MMF)

A Money Market Fund (MMF) is a type of mutual fund that invests in short-term, low-risk securities, such as Treasury bills, certificates of deposit, and commercial paper. MMFs offer higher yields than savings accounts but maintain high liquidity and stability.

Why Investors Use Money Market Funds:

• Safety → Invests in high-quality, low-risk assets.
• Liquidity → Funds can be accessed quickly, similar to a bank account.
• Better Returns than Savings Accounts → While not FDIC-insured, MMFs typically yield more than traditional savings accounts.

MMFs are tend to be used as a safe store for cash while earning a small return, especially in volatile markets.