Money Market Funds Money market funds are stable, low-return funds. They invest in short-term securities issued by banks, the government, or large companies. These funds are similar to CDs in terms of return, but are completely liquid. They can also offer additional benefits such as check writing. Most investors use money-market funds to store cash that is needed for short term purchases or for future stock and bond purchases.
Many funds charge a commission to buyers.
This is commonly referred to as a load. A front-end load is similar to the commission a broker charges for buying a stock and is a percentage fee that investors pay when buying shares. A back-end load is a fee the fund charges investors when redeeming shares. This is sometimes decreased or eliminated depending on how long the investor has held the shares for. This tactic encourages investors to hold shares for the long-term.