What is a money market fund – and why might it be the right choice for your business?

Many business owners are asking themselves the same question right now: What should we do with idle company cash? Leaving it in your business account doesn’t yield anything, savings accounts offer close to zero returns, and traditional investments often feel too complex or risky.

One possible answer: a money market fund.

But what exactly is a money market fund? And why is this seemingly low-profile financial product particularly well suited to businesses like GmbHs and UGs?

What is a money market fund (MMF)?

A money market fund is an investment fund designed for short-term capital parking. It primarily invests in highly secure and liquid assets such as:

• Government bonds, high-grade corporate bonds, or central bank deposits
• With very short maturities (usually under one year)
  
  

The goal: preserve capital, maintain daily liquidity, and generate a small but steady return.

LVNAV – what does that mean?

Holvi’s yield access uses a Low Volatility Net Asset Value (LVNAV) money market fund managed by DWS, one of Europe’s leading asset managers.

This means:

• The share price remains stable at €1.00, under normal conditions
  
  
• Returns are paid out monthly – either as cash or automatically reinvested
  
  
• No market ups and downs – just boringly good consistency
  
  

Why is this interesting for GmbHs and UGs?

Businesses often hold temporary surplus funds – after fundraising, between projects, or when building up reserves. This capital needs to:

• Remain accessible (no long lock-ins)
• Be low risk (no speculation)
• Be easy to manage from an accounting perspective
  
  

A money market fund like Holvi’s yield access delivers on all of these:

• Funds can be added or withdrawn easily
• Monthly payouts ensure clear documentation
• Tax and accounting reports are automatically available. Each monthly payout also includes a PDF summary attached to the transaction, showing gross income, tax deductions, and net payout – ideal for your accounting.
  
  

What’s the actual benefit?

Example: You park €50,000 for 3 months at an assumed net annual yield of 2.43% p.a.
That gives you around €300 in gross return – no lock-in, no hassle, no rate-hopping.

Conclusion

A money market fund may not sound exciting. And that’s exactly what makes it attractive for business owners looking for security, flexibility, and simplicity. 

Monthly payouts, stable valuation, no special knowledge required – boringly good, in the best sense.

Investing carries risks to the capital invested. As with any investment, the value of your investments can go up or down. Past performance is not a reliable indicator of future results. The returns stated are for illustrative purposes and may differ from actual product performance. This is not an offer or investment recommendation. Investors should note that investing in money market funds is not a guaranteed investment and carries different risks compared to a traditional savings account. Access to investment options is granted upon successful onboarding.

Investment brokerage under the liability and for the account of lemon.markets brokerage GmbH, Kottbusser Damm 79, D-10967 Berlin.