As the large non-bank financial institutions shy away from offering mutual funds, it opens up the doors for banks to capitalize on the unmet needs of investors who may no longer be able to purchase institutional money market mutual funds
. By offering money market deposit accounts, which typically have equal or better returns than money market mutual funds
, banks can provide customers with a winning situation --money market accounts allowing for all the benefits with none of the risk.
The seven-day average yield on money market mutual funds
was unchanged at 0.01 per cent from the previous week, according to Money Fund Report, a service of iMoneyNet in Westborough, Massachusetts.
The Role of Money Market Mutual Funds
in the Crisis of Fall 2008
In recent years, the financial services industry has undergone extensive change, including a substantial increase in the amount of assets held in money market mutual funds
.(2) Money funds are particularly interesting, because they offer investors the principal characteristics of many accounts at insured institutions--safety, liquidity, accessibility, and convenience.(3) These features of money market mutual funds
, along with their rapid growth, have led some to believe that money funds are a close substitute for accounts at insured institutions.(4) The issue of substitutability, however, remains an unanswered question.
Thus, a telephone call again allows fund investors to shift in and out of M2-type accounts (that is, retail money market mutual funds
(9) For more details on the money market mutual fund
universe and the regulation of 2a-7 funds, see http://www.sec.gov/answers/mfmmkt.htm.
In September 2009, the collapse of Lehman Brothers spurred the formation of the Asset-Backed Commercial Paper Money Market Mutual Fund
Liquidity Facility (AMLF) and the Commercial Paper Funding Facility (CPFF).
If you opt for a liquid, easy-to-cash-in solution such as a money market mutual fund
, you can expect a low rate of interest in return--less than 1% according to iMoneyNet, a Website that tracks the market.
29 March 2011 -- Indonesian credit rating agency PEFINDO has upheld the idA+f credit quality rating on open-ended money market mutual fund
PNM Pasar Uang Andalan Saya, managed by PT PNM Investment Management.
Shift allocation to 70% to 75% in growth stock mutual funds; 15% to 20% in biotech stocks; and 10% in an emergency savings account or money market mutual fund
. In addition, Jackson believes it's crucial that all investors set up an emergency account of six to 12 months' income.
7 March 2011 -- Indonesian credit rating agency PEFINDO has lowered its credit quality rating on open-ended money market mutual fund
Batavia Dana Kas Maxima to idAAf from idAA+f.
* Emergency fund: Most experts recommend a stash of six to nine months' worth of living expenses in a liquid account, such as a money market mutual fund