Investing in a money market mutual fund is a higher risk than investing in a certificate of deposit because unlike CD's money markey mutual funds?

Investing in a money market mutual fund is considered higher risk than investing in a certificate of deposit (CD) because money market funds are not insured by the FDIC and can fluctuate in value based on the underlying securities they hold. While CDs offer a fixed interest rate and principal protection for a specified term, money market funds invest in short-term debt instruments, which may carry credit risk and market volatility. Therefore, while money market funds can offer higher yields, they also come with greater uncertainty.