Glossary

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)

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Standard Deviation

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Hedge Funds

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Bear Market

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