how does a money market fund work?
Money market funds are generally considered low-risk investments, especially in comparison to other mutual funds. They are designed to return at least the amount that you initially invest. For example, if you pay $1 per share, the fund is set up so that you should receive $1 per share return, plus the interest you make. The earnings you receive from money market funds are based on interest and returns are usually higher than those youâd receive from traditional savings accounts.