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Money market funds?

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Answer:

Money market funds are funds that invest in money market instruments. Also known as principal stability funds, seek to limit exposure to losses due to credit, market and liquidity risks

They invest in the highest quality debt products thereby minimizing chances of losses. They would not invest more than 5% in the same debt issuer to ensure that there is minimal chances of losses.

There are two types of Money market funds. They are:

Institutional money fund &
Retail money fund

First answer by Anandvijayakumar. Last edit by Anandvijayakumar. Contributor trust: 782 [recommend contributor ]. Question popularity: 3 [recommend question].

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