A money market fund is a type of that invests in high-quality, short-term debt instruments. Unlike bank accounts, these are investment products typically held in a brokerage account.
Money market funds (MMFs) are a low-risk, high-liquidity investment staple, often used as a "cash-plus" strategy to park money while earning more interest than a standard savings account. money market funds
Unlike bank accounts, these aren't government-guaranteed; you could lose money, though it's rare. A money market fund is a type of
They pay out interest in the form of monthly dividends , which usually track the Federal Reserve's current interest rates. The "Why" and "Why Not" Stability: Historically, share prices stay at $1.00. short-term debt instruments. Unlike bank accounts
To preserve your initial investment (maintaining a stable $1.00 Net Asset Value per share) while providing daily liquidity.