Money Market Fund

A mutual fund, usually no-load, investing in highly liquid short-term securities, such as certificates of deposit (CDs), U.S. Treasury bills, commercial paper, bankers’ acceptances, and repurchase agreements. Most money market funds are not federally insured, although some carry private insurance. Many are part of fund families that allow investors to transfer money between accounts at no charge. An investment in a money market fund is not insured or guaranteed by the FDIC or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.