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Tax-Exempt Money Market Fund
(redirected from Tax-Free Money Mutual Funds)

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Tax-exempt money market fund
A money market fund that invests in short-term tax-exempt municipal securities.

Tax-Exempt Money Market Fund
A mutual fund that invests predominantly or exclusively in short-term municipal bonds. The returns on a short-term municipal bond fund derive from coupons on the municipal bonds, and are therefore tax exempt. The short-time frame of the bonds makes the fund quite liquid. As a result, these funds are beneficial for short term investors who wish to minimize their tax liability.

tax-exempt money market fund
An open-end investment company that invests in short-term tax-exempt securities. These funds usually pay relatively low current income (free of federal taxes) but are very liquid. They appeal to higher-income investors who seek a temporary investment. Also called short-term municipal bond fund.


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