Money market fund
A fund investing in very short-term debt instruments that are generally low in volatility.
Definition
A fund investing in very short-term debt instruments that are generally low in volatility.
Why this concept matters
It can temporarily manage cash with limited sensitivity to equity markets.
What to watch
Capital is not automatically guaranteed and return changes with short-term rates and fees.
Simple example
Cash awaiting a project may be held temporarily in a money market fund.
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