A form of mutual fund that restricts investments to relatively safe, relatively short-term instruments. Typical money market funds may invest in short-term U.S. government obligations, commercial paper, and banker's acceptances. Average maturities of fund assets are typically 14 to 28 days. The income, less costs, is paid out every day so that the share value is always the same. However, shareholders are not protected against loss from the fund's investments. American Banker Glossary
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A mutual fund that invests only in short term securities, such as banker's acceptances, commercial paper, repurchase agreements and government bills. The net asset value per share> is maintained at $1.00. Such funds are not federally insured, although the portfolio may consist of guaranteed securities and/or the fund may have private insurance protection. Bloomberg Financial Dictionary
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money market fund UK US noun [C] FINANCE
► MONEY FUND(Cf. ↑money fund)
Financial and business terms. 2012.