tax-exempt money market fund

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Tax-exempt money market fund

A money market fund that invests in short-term tax-exempt municipal securities.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.