The fund seeks to provide preservation of capital, liquidity, and, consistent with these objectives, the highest current income exempt from federal income taxes.
Invests in municipal securities that mature in 13 months or less. Its average maturity will not exceed 60 days. Investments into retail money market funds are limited to natural persons or retail customers.
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The Tax-Exempt Money Fund has the lowest risk/reward profile of all the T. Rowe Price federal tax-free funds. Its stability makes it a good place for money between investments or during uncertain market conditions. The fund has less exposure to interest rate risk than a higher-yielding short-term bond fund.
You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. Beginning October 14, 2016, the Fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund's liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.