19/09/2026
Let's talk about Money Market Funds without making it sound like a finance exam.
I've received so many questions about MMFs over the years that I realised something:
A lot of people have heard of them, but they don't actually understand what happens to their money once they invest.
So let's start from the beginning.
A Money Market Fund is a pooled investment.
Imagine 1,000 people each putting some money into the same pool - Instead of everyone individually trying to figure out where to invest, a professional fund manager manages the pool and invests it in short-term, relatively conservative investments such as Treasury bills, bank deposits and commercial paper.
The idea is simple:
Many investors โ one pool โ professionally managed โ short-term investments โ returns to investors.
And because these investments are generally short term, MMFs are often used for things like:
โข Emergency funds
โข Money you're saving for a short-term goal
โข Cash you don't want sitting completely idle
โข Building an investing habit
โข Parking money while deciding what to do with it next
But here's where I want to challenge you... We often think keeping money in our current account means we're being "safe," sometimes we're simply being inactive.
If your money is sitting there earning little or nothing while charges and inflation continue to work against you, that's something worth examining.
This doesn't mean every shilling you own should be thrown into an MMF.. no - your money needs different jobs, and different investments have different purposes.
It simply means: Know what your money is doing - that's financial literacy!
And if you've been wondering about MMFs but were too embarrassed to ask what they actually are, this is your sign.
Ask away.
What's your biggest MMF question?
No question is too basic.
While we're here, take your FREE Financial Health Check here: bit.ly/MWFinHealthCheck and let's discuss.
