what is a money market fund 
a money market fund is a kind of mutual fund that invests in highly liquid near term instruments these instruments include cash cash equivalent securities and high credit rating debt based securities with a short term maturity such as u s treasuries money market funds are intended to offer investors high liquidity with a very low level of risk money market funds are also called money market mutual funds while they sound similar in name a money market fund is not the same as a money market account mma a money market fund is an investment that is sponsored by an investment fund company therefore it carries no guarantee of principal a money market account is a type of interest earning savings account money market accounts are offered by financial institutions they are insured by the federal deposit insurance corporation fdic and they typically have limited transaction privileges 