BlackRock Cash Management

What are money market funds?

Everyone has a need for cash. But cash can mean different things to different people.

Comfort in times of stress, an opportunity for growth.

After all, there is always a need for cash and for cash management, many investors rely on money market funds.

What are money market funds?

Money market funds are mutual or pooled funds that seek to invest in high-quality, short-term debt instruments, helping you to achieve the opportunity of liquidity with a low level of risk.

How do they seek to deliver this? Let's find out.

In general, there are three core objectives of money market funds: stability, liquidity, and yield.

Stability. To seek the stability of principle, the funds may invest in highly-rated short-term bonds such as Treasury bills, certificates of deposit, and repurchase agreements. The types of eligible investments will differ depending on the type of money market fund.

Liquidity. Short-term money market funds may trade and settle on a same day basis, seeking to provide you with convenient access, operational ease, and liquidity.

Yield. There is a spectrum of types of money market funds. You can choose to have a more conservative exposure, such as to only government risk or to a broader pool of money market securities, such as short-term debt from highly-rate issuance. You can also opt for funds that seek to drive positive social outcomes.

So, whatever cash means to you, we know that cash management matters and money market funds are a cash management solution.