FYI: Seasoned mutual fund investors are very familiar with money market funds (MMFs). Developed in the 1970s, MMFs give investors the option of purchasing a pool of securities that typically generate higher returns than interest-bearing bank accounts.
The size, scope, and availability of MMFs have grown exponentially over the past four decades. As a result, there are many kinds of MMFs that give investors exposure to all types of fixed income instruments, including government securities, tax-exempt municipal securities, and corporate debt securities.
For the purpose of this article, we will break down MMFs into three categories: prime, government, and tax-exempt. In all these cases, MMFs are regulated by the U.S. Securities and Exchange Commission (SEC).
Regards,
Ted
https://mutualfunds.com/money-market-funds/types-of-money-market-funds/
