Top Money Market Funds Offer Safety and Yields, But Carry Some Risk

Money market funds invest in short-term, liquid securities to preserve capital while providing income. They offer flexibility compared to CDs and currently have attractive yields.

Top recommended money market funds include Vanguard Federal Money Market Fund, JPMorgan Prime Money Market Fund, and Vanguard Municipal Money Market Fund.

Money market funds are safer after reforms following 2008, but still carry some risk and are not FDIC insured like bank products.

Alternatives like SPDR Bloomberg 1-3 Month T-Bill ETF allow trading during the day but have fluctuating NAVs.

Factors to consider when selecting a money market fund include yields, risk tolerance, minimum investments, and tax implications.