• Print
  • Default text size A
  • Larger text size A
  • Largest text size A

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.

How Fidelity Manages Money Market Funds

Types of money market funds

Treasury and government money market

Invest in U.S. Treasury and other taxable U.S. government securities.

Daily pricing/yields for Fidelity Treasury and government money market funds

Two funds are available for use as the non-core or core position in a retirement or non-retirement account:

Fidelity® Government Money Market Fund (SPAXX)

Fidelity® Treasury Money Market Fund (FLTXX)

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.

Daily pricing/yields for Fidelity general purpose (prime) money market funds
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.

Daily pricing/yields for Fidelity national municipal money market funds

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.

Daily pricing/yields for Fidelity state municipal money market funds

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information.  Read it carefully.
An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
The municipal market can be affected by adverse tax, legislative or political changes and the financial condition of the issuers of municipal securities. Interest rate increases can cause the price of a money market security to decrease. Municipal funds normally seek to earn income and pay dividends that are expected to be exempt from federal income tax. If a fund investor is resident in the state of issuance of the bonds held by the fund, interest dividends may also be exempt from state and local income taxes. Such interest dividends may be subject to federal and/or state alternative minimum taxes. Certain funds normally seek to invest only in municipal securities generating income exempt from both federal income taxes and the federal alternative minimum tax; however, outcomes cannot be guaranteed, and the funds may sometimes generate income subject to these taxes. Fund shareholders may also receive taxable distributions attributable to a fund's sale of municipal bonds.

Generally, tax-exempt municipal securities are not appropriate holdings for tax advantaged accounts such as IRAs and 401(k)s.
* Other fees and expenses applicable to continued investment are described in the fund's current prospectus.

core position

the core position is automatically established when an account is opened and is used for processing cash transactions and holding uninvested cash in your account. when a security is sold or a deposit is received, the proceeds are deposited into the position; when a security is bought or a payment is made, cash in the core position is used to pay for the trade