Planning & Education | Money Market Funds

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The Basics |

Money Market Funds

Money market mutual funds invest in high-quality, short-term debt instruments issued by banks, the federal government and corporations. They maintain a dollar-weighted average portfolio maturity of 90 days or less. The funds are managed to maintain a constant $1.00 price per share, or net asset value (NAV). Money market fund yields, however, vary with market conditions. Money market mutual fund shares are not insured by the FDIC or the U.S. government and are subject to risk of principal loss.

There are various types of money-market funds based on the type of underlying securities.

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An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation, or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market fund. As a measure of current income, seven-day yield is more reflective of the fund's income generating ability than total return.

Short-term corporate, asset-backed and municipal securities holdings (where applicable), while rated in the highest rating category by one or more NRSRO (or if an unrated municipal, deemed of comparable quality by Dreyfus), involve credit and liquidity risks and risk of principal loss.

Investors should consider the investment objectives, risks, charges, and expenses of a fund carefully before investing. Download a prospectus that contains this and other information about a fund, and read it carefully before investing.