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Thread: Definition of 'Money Market Fund'

  1. #1
    Join Date
    Nov 2009
    Posts
    76,596

    Default Definition of 'Money Market Fund'

    An investment whose objective is to earn interest for shareholders while maintaining a net asset value (NAV) of $1 per share. A money market fund’s portfolio is comprised of short-term (less than one year) securities representing high-quality, liquid debt and monetary instruments. Investors can purchase shares of money market funds through mutual funds, brokerage firms and banks.

    Last edited by sherlyk; 04-22-2014 at 04:55 PM.

  2. #2
    Join Date
    Apr 2013
    Location
    Mumbai, India
    Posts
    408

    Default

    Hey there Thank u so much for the Info.

    It's important to understand that each mutual fund has different risks and rewards. In general, the higher the potential return, the higher the risk of loss. Although some funds are less risky than others, all funds have some level of risk - it's never possible to diversify away all risk. This is a fact for all investments.


    Each fund has a predetermined investment objective that tailors the fund's assets, regions of investments and investment strategies. At the fundamental level, there are three varieties of mutual funds:
    1) Equity funds (stocks)
    2) Fixed-income funds (bonds)
    3) Money market funds
    4) Open Ended Fund

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