Multiple choice

The most important attribute of a money market mutual fund is

  1. High regular income

  2. Safety of principal

  3. No loads

  4. Quick capital appreciation

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Money market mutual funds prioritize preservation of principal above all else. They invest in short-term, high-quality debt instruments to minimize risk and maintain stable NAV. Regular income is a secondary benefit, and capital appreciation is not the primary goal.