Money market funds are one kind of mutual fund that primarily invests in money market instruments that mature within one year. Money market means the financial market that deals with very short-term fixed-income instruments. The typical participants of money market funds are banks, institutional investors, corporations, other financial institutions, and more.
A money market fund will specifically carry characteristics such as a short investment duration, high liquidity, lower interest rates, and relatively lower yields.
Since money market funds invests in securities for a period of 1 year or less, they keep tweaking the duration so as to generate better returns and keep risk under control.
Moreover, these funds work similarly to any other mutual fund, but they are constructed in a manner that lets the fund manager generate higher returns while keeping
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