money market mutual funds
TRANSCRIPT
MONEY MARKET MUTUAL FUNDS.
Money market mutual funds are like ordinary mutual funds with some added characteristics. The most
important difference between mutual funds and money market mutual funds is that the latter invest in
money market financial instruments (securities that have maturities of less than a year). Because of the
kind of securities they invest in, assets of a money market fund are considered very liquid and are
unlikely to generate losses to those that participate in these funds. Shareholders in a money market
mutual fund receive investment income based on the earnings of the security holdings of the fund. A
key characteristic of a money market mutual fund is that participants in these funds have limited check -
writing privileges on their shareholdings—frequently, checks cannot be written for less than $500.
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