Money market fund is a kind of fund that invests in short-term money market instruments and is usually regarded as a cash management tool. The Fund mainly invests in short-term debt instruments, such as treasury bills, commercial bills, bank acceptance bills, large negotiable certificates of deposit, etc. The term is generally within one year.

The characteristics of money market funds are as follows:

1. High liquidity: Money market funds are usually highly liquid, and investors can redeem their fund shares at any time. Withdrawals usually arrive within 1-2 working days.

2. Low risk: Because money market funds mainly invest in short-term, high-credit money market instruments, their risk is relatively low.

3. Stable income: The income of money market funds is usually relatively stable, because the interest rate fluctuations of short-term bonds and bills they invest in are relatively small.

4. Low threshold: The investment threshold of money market funds is low, and many fund companies have launched 1 yuan money market fund products, which are suitable for all kinds of investors.

It should be noted that although money market funds have low risks, they are not completely risk-free. In extreme cases, such as sharp fluctuations in market interest rates or economic crisis, money market funds may also suffer losses. Therefore, when investing in money market funds, investors should fully understand their risks and make careful decisions.

In a word, money market fund is a fund that invests in short-term money market instruments. It has the characteristics of high liquidity, low risk and stable income, and is suitable for investors who pursue stable income.