What is a money market fund?

Money market funds are fixed income mutual funds that invest in debt securities with short maturities and very low credit risk. They offer ultra-low volatility and extremely good liquidity and may invest in taxable or tax-exempt government securities. Money market funds are open-ended funds, meaning they may sell unlimited shares to customers.

Are money market funds a good investment?

Investors in money market funds earn income, or a yield, from the securities that are held within the fund. Here are some of the top money market funds to consider for your portfolio. *Data listed below is as of June 28, 2024. The Vanguard Federal Money Market Fund invests in cash and short-term securities issued by the U.S. government.

How much money are in money market funds?

Assets in money market funds have hit all-time record levels four weeks in a row, according to cranedata.com. Investors poured a net $152.7 billion into money market funds in May. That put money market fund assets at $5.8 trillion.