mutual funds vs money market savings? clueless

mutual funds vs money market savings? clueless

hi everyone, so i am clueless when it comes to these things. i have really good credit, despite having racked up my share of credit card bills, but i was always able to pay as much as i could and finally came out on top. it was a crazy battle, however. i am trying to get my life on track financially, as my student loans are kicking in on june 8th. since i was young, my parents have set up mutual fund accounts for me and my sisters. there used to be a sizable chunk of cash in there, but with the stock market and life itself, it has dwindled over the years. i have no idea what the money is invested in, in terms of companies or whatnot, for all i know i could be funding genocidal maniacs. my question is, would it be silly to take the money out of the mutual funds (from my december statement to this month's statement, i have experienced a $1000.00 decrease without having sold any shares, just from devaluation alone) and put it into a money market savings account? i have investigated these types of accounts at my bank, and it seems it would be a.8% interest rate, and would require me to maintain a $1000.00 balance. i am thinking of starting the account out at $5000.00. would this be wise? are there some benefit to mutual funds that i am not aware of? i know this may not be a poor skill... i just am living paycheck to paycheck quite fine at the moment, but want to have some good savings going in case anything were to go awry. any insight would be appreciated. if anything is vague, it is because i don't quite understand the whole thing myself, but i will try to field any questions as they arise. thank you. in peace.
Rambler with dahlias

Rambler with dahlias

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Plant identification question — weed, or wait?