What are money market funds and how do they work What is a money market fund Money market funds have relatively low risks compared to other mutual funds and most other investments, but historically have had lower returns. But they offer yields that compete with the best savings accounts Money market funds are managed with the goal of maintaining a highly stable asset value through liquid investments, while paying income to investors in the form of dividends Although they are not insured against loss, actual losses have been quite rare in practice.
Money market funds are considered one of the least risky investment vehicles available,. Money market funds are a type of mutual fund that invest in assets that are generally easy to convert to cash, sometimes called cash equivalents.
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