Money Market Funds
A money market fund is a type of fixed income mutual fund that invests in debt securities that are characterized by their short maturities and minimal credit risk.
For money market funds, income can be either taxable or tax exempt, depending on the types of securities in which the fund invests. These may include short-term U.S. Treasury securities, federal agency notes, Eurodollar deposits, repurchase agreements, certificates of deposit, corporate commercial paper; or obligations of states, cities, or other types of municipal agencies.
Types of money market funds
|U.S. Treasury and government money market||
Invest in U.S. Treasury and other taxable U.S. government securities.
Two funds are available for use as the non-core or core position in a retirement or non-retirement account:
Note: minimum investment requirements do not apply to core positions.
|General purpose (prime) money market||
Invest in high‐quality, U.S. dollar‐denominated, short‐term taxable money market securities from government and private issuers, including corporations.
Fidelity offers two funds for use by institutional investors:
Note: minimum initial investment is $1 million+
|National municipal money market||
Invest in high-quality, short-term municipal money market securities that are typically exempt from federal income taxes, and in some cases the alternative minimum tax.
|State municipal money market||
Invest in high-quality, short-term municipal money market securities that are typically exempt from federal income taxes and may be exempt from state income taxes depending on your state of residence.