Introduction to Money Market Funds

(1 of 6)

This tutorial examines mutual funds that invest in short-term government and corporate debts.

What you will learn

  • What Is a Money Market Fund?
  • What Do Money Market Funds Invest In?
  • Safety Concerns about Money Market Mutual Funds
  • Ways You Can Use Money Market Mutual Funds

What do you know?

Introduction to Money Market Funds

The money market is the market for short-term debt securities, which are loans that governments and corporations sell to investors. These loans mature between one day and one year, depending on the type. They also pay competitive returns. Investors may buy and sell individual money market instruments or participate in the money market by investing in money market mutual funds. Though the money market isn’t always visible to most of us, it has a strong presence in the economy.