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Article: 30 years, and their popularity keeps rising; Interesting concept: Some money market funds insure the deposits
- Article from:
- Telegraph - Herald (Dubuque)
- Article date:
- October 14, 2001
- Author:
CopyrightCopyright 2001 Telegraph - Herald (Dubuque). Provided by ProQuest LLC. (Hide copyright information)
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Thirty years ago this month, Americans got a new place to stash
their cash - money market mutual funds.
The first such fund opened to investors in 1971, with the debut
of the Reserve Fund. Today there are an estimated 1,042 U.S. money
market funds, with assets totaling more than $2 trillion, according
to the Investment Company Institute, a mutual fund industry group.
Money market funds also have become a huge part of the mutual fund
industry, accounting for nearly a third of all fund assets.
Investors like money market funds because they generally offer
higher rates of return than a regular checking or savings account.
But those gains can come at a price. Money market mutual funds are
not ...