Advertisement
YOU ARE HERE: LAT HomeCollections

YOUR MONEY

Investment Watch

September 08, 1996

If Friday's healthy U.S. employment report means the Federal Reserve Board will finally be prodded to boost short-term interest rates, money market mutual fund owners should benefit. The average taxable money fund yield has barely budged since February, stuck at about 4.8%. Yet fund assets have swelled 12% since Jan. 1, to $718 billion now, according to IBC Financial Data. Many investors wary of stocks and bonds have been content to keep their cash in money funds, despite low yields. But pros still advise using the funds only as a temporary parking place. Returns have been skimpy since 1991, and unless the Fed raises short-term rates dramatically--which is unlikely--fund yields won't leave you with much after taxes and inflation.

Source: IBC Financial Data

Advertisement
Los Angeles Times Articles
|
|
|