How Fidelity Manages Money Market Funds

Fidelity is proud to manage in excess of $900 billion1 in money market assets for millions of customers. Fidelity's money market funds invest in money market securities of the highest quality and provide clients daily liquidity.

Our three priorities for money market funds, in order of importance

Stability and safety

Fidelity's prudent approach to money market fund management has been, and will continue to be, proactive in keeping money market funds safe and protecting the net asset value (NAV) per share. This has always been Fidelity's #1 objective in managing money market funds. Each money market fund is a diversified portfolio of high-quality, short-term money market securities in full compliance with industry-standard regulatory requirements for money market funds regarding the quality, maturity, liquidity and diversification of the fund's investments.

Retail prime and retail municipal as well as government money market funds continue to use a stable $1.00 NAV. Fidelity manages money market funds for certain institutional investors that use a fluctuating NAV. Whether a money market fund is a stable or floating NAV fund, we will remain focused on the stability and safety of the fund's investments.


Fidelity places a strong emphasis on managing its funds with sufficient liquidity. Fidelity's money market fund clients may redeem shares of any fund on a daily basis, offering a convenient solution for cash needs.

Securities and Exchange Commission (SEC) rules implemented in 2016 mean that prime and municipal money market funds could be subject to redemption restrictions, in the form of a fee or gate, under certain extraordinary stress conditions. Fidelity's government money market funds (including U.S. Treasury funds) are not subject to fees or gates.

Understanding Liquidity in a Money Market Mutual Fund

Historically competitive yields

In addition, Fidelity aims to provide competitive and consistent yields. We are focused on helping investors achieve their financial goals while taking a conservative approach towards managing risk.

Our approach

Independent credit research

Fidelity employs a security selection process driven by bottom-up fundamental research performed by Fidelity's credit analysts. Fidelity's team-oriented approach incorporates an issuer-specific and systematic review of every security purchased in a money market fund. Fidelity's independent credit assessment, evaluation, and monitoring do not rely on the rating agencies to determine credit quality.

Experienced team

Fidelity has built one of the largest, most sophisticated fixed income organizations in the mutual fund industry. Our money market group consists of an experienced team of research analysts, traders, and portfolio managers supported by a global research platform and industry-leading technology. Fidelity has distinguished itself as one of the industry leaders of money market funds by providing safety, liquidity, and competitive yields for your cash investments.

Learn about Fidelity's Municipal Money Market Fund Mergers and Changes

Read Fidelity's Money Market Commentary
Q4 2022
Q3 2022
Q2 2022
Q1 2022

View Fidelity Money Market Funds