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Decoder · Kinds of investments

Money market fund

A fund that holds very short-term, cash-like loans and aims to keep a steady value. It pays a modest yield and barely moves. Inside a brokerage or IRA, new money often lands in a money market fund first — which is why your account can look 'invested' while your money is really still sitting in cash.

For your first $100: If your first $100 is sitting in a money market fund, it is parked, not invested for growth. Knowing that one fact unsticks thousands of beginners.

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