Money market funds invest in short-term fixed income securities such as treasury bills, bankers’ acceptances, commercial unsecured short-term debt and certificates of deposit. They are generally a safer investment (although no investment is completely risk-free), but with a lower potential return than other types of mutual funds.
Fixed income funds buy investments that pay a fixed rate of return like government bonds, investment-grade corporate bonds and high-yield corporate bonds. They aim to have money coming into the fund on a regular basis, mostly through interest that the fund earns. High-yield corporate bond funds are generally riskier than funds that hold government and investment-grade bonds.
Speak with a registered representative for advice that fits your personal and financial circumstances.