Money Market Fund

Money Market Fund Meaning:
In deposit terminology, the term Money Market Fund refers to an investment account where the issuer generates interest income for the buyers of its shares while maintaining a net asset value of a minimum of one dollar per share.

For example, a Money Market Fund is an open ended mutual fund, which means that the fund pools the financial resources of a large number of people and invests in short term, high quality debt securities and other financial instruments such as blue chip stocks. The term “open ended” means that the fund is not restricted by a limited number of shares it can issue, but can issue more shares as investors demand them. At the same time, the open ended fund must repurchase all shares investors wish to redeem at the net asset value price. Money Market Funds typically offer a low interest rate.