Money Market Mutual Fund
Definition of "Money market mutual fund"
Fund that concentrates primarily on short-term government securities, certificates of deposit with maturities less than one year, and high-quality interest-bearing corporate debt. The fund is a pool of money from many investors from which interest is paid to these investors on the income earned by that pool of money. Income and yield fluctuate on a daily basis, but each share in the mutual fund maintains a constant value of $1, resulting in no capital gains or losses. These funds are ideal for short-term needs. Since these funds invest in financial instruments whose maturities are very short, reinvesting is on a continuous basis. Thus, as interest rates rise or fall, the funds' yields will correspond accordingly.
Popular Insurance Terms
One-year coverage that is renewable at the end of each year. Since the group plan is subject to experience rating, the premium rate upon renewal is based on such factors as the loss record ...
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Transfer of highly individualized loss exposures that is not based on the usual pooling principles of insurance such as risk identification and classification selection. Rather than setting ...
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