Money Market Fund
DEFINITION
A money market fund is an open-ended mutual fund that invests in short-term, low-risk debt securities, usually with maturities of less than one year, such as treasury bills. Its goal is to preserve capital while offering a higher yield, so it is generally seen as a low-risk place to hold cash.
ELI5
It is like parking your cash in a very careful investment that aims to stay safe while earning a bit more than leaving money idle.
Other related terms
Total Debt Servicing Ratio (TDSR)
Learn more
Standard Deviation
Learn more
Hedge Funds
Learn more
Bear Market
Learn more
