open-ended mutual fund that invests in commercial paper, bankers' acceptances, repurchase agreements, government securities, certificates of deposit, and other highly liquid and safe securities and pays money market rates of interest. The fund's net asset value remains a constant $1 a share-only the interest rate goes up or down.
open-ended mutual fund that invests in commercial paper, banker's acceptances, repurchase agreements, government securities, certificates of deposit, and other highly liquid and safe securities, and pays money market rates of interest. Launched in the middle 1970s, these funds were especially popular in the early 1980s when interest rates and inflation soared. Management's fee is less than 1% of an investor's assets; interest over and above that amount is credited to shareholders monthly. The fund's net asset value normally remains a constant $1 a share-only the interest rate goes up or down. Such funds usually offer checkwriting privileges.
Many money market funds are part of fund families. This means that investors can switch their money from one fund to another and back again without charge. Money in an asset management account usually is automatically swept into a money market fund until the accountholder decides where to invest it next.
