A money market fund is a kind of mutual fund that invests only in highly liquid assets such as cash, cash equivalent securities, and high rated debt-based securities with a short-term maturity— less than 13 months. As a result, these funds deliver very low-risk high liquidity. Also known as mutual funds on the money market, money market funds work like any mutual fund. We grant redeemable units or securities to investors and are required to follow the guidelines drawn up by financial regulators, such as those defined by the United States. Commission for Securities and Exchange (SEC). Many money market funds are targeted with a high minimum investment amount, typically $1 million, to draw institutional money. Also, other money market funds are retail money funds that are sold by their low minimums to individual investors.