Money market funds invest in short-term instruments such as murabaha placements, deposits, and high-quality short-dated securities. Their first goal is preserving capital; the second is earning a return tracking prevailing interest rates or murabaha margins.
In the Saudi market, many of these funds run on shariah-compliant murabaha structures, and the category holds some of the largest assets among both retail and corporate investors. They typically serve as a temporary home for cash: money awaiting an opportunity, or funds earmarked for near-term use.
Their hallmark is near-zero volatility: unit prices move slowly and steadily compared with equity funds. The flip side of that safety is limited returns, which may not beat inflation by much over the long run — they are a parking and preservation tool more than a growth tool.
Low-risk does not mean guaranteed: their value can be affected by the quality of the instruments they hold, and their yield moves with market rates.