A money market fund is a type of mutual fund that would normally invest in cash, government securities, certificates of deposit, or other types of safe and solid securities, but they pay money market type of interest rates. The funds NAV (net asset value) remains constant at $1.00 a share. The only part that changes is the interest rate which will constantly change over time.

Sometimes you can transfer from the fund to another mutual fund without charge. That is if it’s a part of the same “fund family” of the same ownership. Remember that these are low risk, low return rates but that it is government secure. So, if you’re really worried about your money, this would be good for you. Also, this is a good option for your IRA since it is long term and since IRA’s are ideally low risk in order to have a good retirement.