Unlike bank accounts, these aren't government-guaranteed; you could lose money, though it's rare.
To preserve your initial investment (maintaining a stable $1.00 Net Asset Value per share) while providing daily liquidity. money market funds
They buy "boring but safe" assets like U.S. Treasury bills , certificates of deposit (CDs), and commercial paper (short-term corporate loans). Treasury bills , certificates of deposit (CDs), and
A money market fund is a type of that invests in high-quality, short-term debt instruments. Unlike bank accounts, these are investment products typically held in a brokerage account. Money market funds (MMFs) are a low-risk, high-liquidity
Money market funds (MMFs) are a low-risk, high-liquidity investment staple, often used as a "cash-plus" strategy to park money while earning more interest than a standard savings account.
You can usually access your cash within 1–2 business days.
The price doesn't go up like a stock; you only earn the interest. Common Types of Funds What are money market funds? | BlackRock