money market funds

Low-risk liquid investments

Money market funds are mutual funds that invest in short-term, low-risk debt securities like Treasury bills, commercial paper, and certificates of deposit.

They aim to maintain a stable value—typically one dollar per share—while providing modest returns slightly better than savings accounts.

Investors use them for parking cash they may need soon: I moved the down payment into a money market fund while we house-hunted.

liquidity

convertibility

Capacity for free exchange

liquid assets · cash management · easy access

yield

interest rates

Price paid for borrowing

yield curve · competitive rates · income distribution

safety

capital preservation

Safeguarding original investment value

risk-averse · secure · credit rating

holdings

certificates of deposit

Fixed-term bank instruments

mechanics

net asset value

Holdings minus debts

share price · prospectus · minimum investment

purpose

emergency reserves

Resources saved for crises

Categories
Opposites
risk and volatility

money market fundspenny stocks

Very low-priced shares

cryptocurrency · venture capital · derivatives · meme stocks · junk bonds

liquidity and access

money market fundsprivate equity

Capital for unlisted companies

real estate · hedge funds · annuities · venture capital · restricted stock

underlying assets

money market fundsstock funds

Pooled share investments

equity funds · bond funds · index funds · balanced funds

Family

money, market, fund, funds, markets, moneys, monies, monetary, monetize

Familiarity
Top 500,000
Profile
Used worldwide · Timeless · Abstract · Rated G