Money market mutual funds (usually referred to as money market funds or money funds) invest in short-term, fixed-income securities, otherwise known as money market investments. By definition, money market investments mature in less than one year.
Like other mutual funds, money market funds are pooled investments that allow investors to participate in a diversified portfolio managed by professionals to meet certain goals, which are stated in the fund’s prospectus.
Check out these informative articles on how to invest in money market mutual funds:
Should you choose a taxable or tax-free money market mutual fund? How do you decide on the right investment for your financial objectives? Read this brief overview so you can make a better informed decision.
In addition to paying higher interest rates than most traditional savings accounts, money market mutual funds can yield big rewards for investors. Before you jump in, however, take a moment to familiarize yourself with the risks involved, too.