by 
The Curious Bag
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Investments fit into the broad scope of personal finance and with the right tools can better your financial outcome. A money market fund is one tool that offers a low-risk return on your investments.
What is a Money Market?
Money markets are a network of banks, institutional investors and money dealers who borrow and lend amongst themselves for a short period of time, usually 90 days.
What is a Money Market Fund?
A money market fund is an open-end mutual fund that invests solely in money markets.
What is the Objective of a Money Market Fund?
The fund invests for a short period of time--one day to one year--in debt obligations, commercial paper, certificates of deposit and Treasury bills. Conservation of principle is the prime objective.
Are Money Market Funds Risky?
Money market funds are very liquid, and financial institutions tend to store money in these funds that is not currently invested. The risk is low with these funds, but most deposits are not FDIC insured.
Downsides of Money Market Funds
The biggest risk is that inflation will out pace the fund's returns, thus destroying the investor's purchasing power.
Warnings
Consult your financial planner or adviser. Not all investments pertain to all investors. Investors have different risk tolerance and investment objectives. Like all investments, money market fund do carry risk, although low; this type of fund is considered the safest of all mutual funds.
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