Money Market Mutual Fund

Money Market Mutual Fund – A money market mutual fund is an open-end type of mutual fund that is specifically invested in money markets. Such funds are short term investments. They are composed of debt obligations such as certificates of deposit, Treasury bills and commercial paper. The primary aim is to preserve the principal. And this normally means only modest dividends. With these funds the Net Asset Value remains at $1. The money market mutual fund is considered to be a very liquid form of investment. Financial institutions often used such form in order to store money not presently used for investments.