This is daily liquidity. Some of the investments a money-market fund makes may be governement guaranteed, but others may not be, and the shares of the fund itself carry no guarantee of safety. Mutual funds may invest in one kind or in many different kinds of investments. The most popular mutual funds invest in stocks of companies. Stocks are also sometimes called equities .
Companies issue stock to raise money to grow their business.
Many mutual funds invest in fixed-income investments such as bonds issued by governments and corporations. A bond is a fixed interest security under which the issuer contracts to borrow money, agrees to repay the bondholder on a stated date in the future, and agrees to make interest payments either semi-annually or annually. Bonds mature when the principal is due to be repaid to the bondholder. Bonds that mature in less than five years are described as short term , between six and 15 years as medium term , and longer than 15 years as long term . The risk of owning a bond is that the issuer will default by missing interest payments or by being unable to repay the principal at maturity.