A money market fund (MMF) is a type of mutual fund that invests exclusively in short-term, high-quality debt instruments such as T-bills, bank deposits, and short-term bonds. It aims to maintain a stable net asset value while generating daily income distributions. Investors can typically buy and sell shares on any business day, making MMFs one of the most liquid investment vehicles available.
In Egypt, MMFs are regulated by the Financial Regulatory Authority (FRA) and managed by licensed asset managers. They pool investor money to achieve scale and access to instruments individual investors might not easily reach. Returns are expressed as an annual yield, though distributions happen daily or monthly.