GLOSSARY · INVESTING

Money market fund

A mutual fund that holds very short-term debt such as Treasury bills and aims to keep a stable share price, so it behaves much like cash. It is regulated by the SEC under Rule 2a-7 but is not insured, and its price can fall below its target in rare cases. Government funds hold almost only government securities; prime and municipal funds add corporate or tax-exempt debt.

Also called: money market mutual fund, MMF, government money market fund, sweep fund
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Investment fee / expense ratio impact →How much will a 1% fee cost me over 30 years?HYSA vs T-bill vs CD vs MMF after tax →After federal and state tax, where should my cash sit?
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CHAPTER · HIGH-YIELD SAVINGS OPTIMIZATION · DEEP DIVEMoney Market Accounts, Money Market Funds and Brokerage CashCHAPTER · HIGH-YIELD SAVINGS OPTIMIZATION · DEEP DIVETaxes on Interest and How to Keep More
RELATED TERMS
Deposit insurance (FDIC and NCUA)Treasury billTax-equivalent yield
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