Money market funds are a type of mutual fund that invest in liquid, short-term debt securities, cash and cash equivalents. Money market funds have relatively low risks compared to other mutual funds and most other investments, but historically have had lower returns. Money market funds pay dividends that generally reflect short-term interest rates. Many investors use money market funds to store cash or as an alternative to bank savings vehicles.
Before investing in a money market fund, you should carefully read the fund’s available information, including its prospectus and its most recent shareholder report.
