Money Market Fund
Definition
What is Money Market Fund?
A mutual fundA pooled investment vehicle that combines money from many investors into one professionally managed portfolio. that invests mainly in short-term, relatively liquid instruments such as treasury bills and deposits.
Example in practice
How This Looks in Practice
A money market fund may hold Treasury bills, commercial paperShort-term unsecured debt issued by a company., and bank placements to generate income.
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Related Terms
Equity Fund
A fund that invests primarily in shares and seeks long-term capital growth.
Fund TypesFixed Income Fund
A fund focused on income-producing debt securities such as government and corporate bonds.
Fund TypesBalanced Fund
A fund that combines growth assets such as shares with income assets such as bonds and cash.
Investment MethodsLump-Sum Investment
A single, relatively large investment made at one time instead of through repeated contributions.