Returns from the popular money market funds (MMFs) have softened as interest rates eased off from record highs, signalling lower returns from the asset class sought after mostly by retail or individual investors.
An MMF is a type of mutual fund that invests in high-quality, short-term debt instruments, cash, and cash equivalents. Though not exactly as safe as cash, money market funds are considered extremely low risk on the investment spectrum and thus carry close to the risk-free rate of return.
