Money Market Funds
Money Market Funds are a type of mutual fund that invests in short-term, low-risk debt securities such as Treasury bills, commercial paper, and certificates of deposit. These funds are designed to provide investors with a safe and liquid investment option that offers higher returns than traditional savings accounts. Money Market Funds are regulated by the Securities and Exchange Commission (SEC) and are required to maintain a stable net asset value (NAV) of $1 per share. They are considered to be a low-risk investment option, but they are not insured by the Federal Deposit Insurance Corporation (FDIC) like traditional savings accounts. Money Market Funds are popular among investors who are looking for a safe place to park their cash while earning a higher return than a savings account.
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