# Money Market Fund

*Markets & Instruments — Finicade finance glossary*

A money market fund is a mutual fund holding very short-term, high-quality debt, designed to keep a stable value while paying prevailing short-term rates. It is an investment, not a deposit: there's no government insurance, and 'breaking the buck' — falling below a $1 NAV — has happened, triggering a run in 2008. Government-only funds are the most conservative version, and yields track policy rates far faster than bank savings rates do.

**Also known as:** MMF, cash fund, treasury money market fund

**Related terms:** [Money Market Account](https://finicade.com/glossary/money-market-account), [Treasury Bill](https://finicade.com/glossary/treasury-bill), [Commercial Paper](https://finicade.com/glossary/commercial-paper), [Liquidity](https://finicade.com/glossary/liquidity), [Net Asset Value (NAV)](https://finicade.com/glossary/net-asset-value)

Source: https://finicade.com/glossary/money-market-fund