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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.

Reasons to consider money market funds

  • No loads*
  • Daily liquidity
  • Potential tax advantages from municipal 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 Fidelity Money Market Funds & Core Eligibility

Types of money market funds

Taxable money market

Invest in high-quality, U.S. dollar-denominated, short-term money market securities. Income is generally subject to federal and state taxes.

Daily pricing/yields for Fidelity taxable 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

Questions?

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.
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