Money funds' relative returns show strong persistence. Most funds maintain stable expense ratios, so low-cost funds produce consistently high relative returns.Dale L. Domian and William ReichensteinFinancial Services ReviewPerformance and persistence in money market fund returns - Domian, Reichenstein -...
The Cross Section of Money Market Fund Risks and Financial Crises Method of operating a money market fund business An Evaluation of Money Market Fund Reform Proposals Search and selection in the money market fund industry Performance and persistence in money market fund returns ...
Money market funds have slightly better returns than savings accounts. Here’s our biggest issue with money market funds: their performance! You can probably expect around 2–3% returns from a money market fund. And while that might be better than the returns you’ll find with a savings accou...
Money market funds are a type of mutual fund that invest in short-term investments, that can provide relatively modest returns with relatively lower risk than other interest yielding investments. There are three types of money market funds available: government, municipal and prime. High liquidity ...
Low returns, which is compensated by low risk Stability and certainty Types of Money Market Funds The Securities and Exchange Commission (SEC) regulations comprise three categories of money market funds based on the securities in the fund:
Returns from the popular money market funds (MMFs) have softened as interest rates eased off from record highs.
Inflation risk Because of the safety and short-term nature of the underlying investments, money market mutual fund returns tend to be lower than those of more volatile investments such as typical stock and bond mutual funds, creating the risk that the rate of return may not keep pace with inf...
If you are deciding between tax and tax-free funds, it is important to calculate whether the tax savings created by the tax-free fund will be enough to make its lower yield worthwhile. Taxable funds generally have higher returns—nominally. But if the tax on those returns effectively wipes o...
The interest rates that are available on the various instruments that constitute the portfolio of a money market fund are the key factors that determine the return from a given money market fund. Looking at historical data is enough to provide sufficient details on how money market returns have ...
Crucially, quarter-end returns are significantly driven by the deviations between market-based and accounting-based NAVs. Further analyses indicate that returns are intentionally managed upward through NAV deviations to influence fund flows, with the important implication of wealth transfers among exiting,...