Legal Definitions - money-market fund

A money-market fund is a type of mutual fund that invests in low-risk government securities and short-term notes. It is a way for investors to earn a small return on their money while keeping it safe. Money-market funds are considered to be very safe investments because they invest in short-term debt securities that are issued by the government or by corporations with high credit ratings.

• Vanguard Prime Money Market Fund
• Fidelity Government Money Market Fund
• Schwab Value Advantage Money Fund

These examples illustrate the definition of a money-market fund because they are all mutual funds that invest in low-risk government securities and short-term notes. They are designed to provide investors with a safe place to park their money while earning a small return. Money-market funds are a good option for investors who want to keep their money safe and liquid, but still earn a small return.