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Money Market Mutual Fund

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A money market mutual fund is a mutual fund that invests in short-term money market investments, such as US Treasury bills, certificates of deposit, repurchase agreements, and commercial paper. A money market mutual fund is popular among risk-averse investors, due to the low volatility of the money market mutual fund's investments. A money market mutual fund's net asset value is usually kept at $1 a share (not guaranteed), and its interest rate will fluctuate. The return on a money market mutual fund will depend on the returns of its individual securities. A money market mutual fund typically offers its investors check writing privileges. A fund may also allow an investor to withdraw cash from automated teller machines for a fee.



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