A money market fund is a type of mutual fund that invests in very safe, short-term loans and securities, such as government bills and corporate loans due within months. These funds aim for stability and modest returns rather than growth. They are considered one of the safest investments available.
Instead of keeping $10,000 in a regular savings account earning almost nothing, you put it in a money market fund that earns a modest interest rate. The fund keeps your money safe by investing it in loans from the government and large, stable companies that will repay the money quickly.
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