What is the meaning of Money Market Funds?

Are mutual funds which invest in short-term instruments such as Treasury bills, commercial paper, and asset backed securities (ABS). Broadly defined, these investments have maturities, and for some, durations less than a year. Often, these funds try to keep the average maturity or quantitative duration within 2-3 months. Also, these funds try to maintain a net asset value (NAV) of $1 per share. However, this price level is not guaranteed and there have been cases where it was broken. In the latter case, it is known as "breaking a buck.".

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APABarry Goldsmith. (2010). money market funds. Retrieved September 29, 2026, from http://smartdefine.org/money_market_funds/definitions/1158368
ChicagoBarry Goldsmith. 2010. "money market funds" http://smartdefine.org/money_market_funds/definitions/1158368 (accessed September 29, 2026).
HarvardBarry Goldsmith 2010, money market funds, Smart Define, viewed 29 September, 2026, <http://smartdefine.org/money_market_funds/definitions/1158368>.
MLABarry Goldsmith. "money market funds" 21 October 2010. Web. 29 September 2026. <http://smartdefine.org/money_market_funds/definitions/1158368>