Why your money is safe cash fund

Since the fund’s share price spare main write-off in 2008, Lehman Brothers, filed for bankruptcy after debt issued fell below $ 1

With regard to security of money market funds have been wandering. Investors now have another worry: US money market fund’s top ten gold – which can be invested in short-term corporate and government debt – nearly 50% of their total assets invested in European financial institutions, according to Fitch Ratings. Because of tight government debt in some European countries, you should worry about is the price of another currency fund will be less than $ 1

No, Pete Hehe data, said: “In in millions of investors invite government intervention in currency assets of the Fund and the tens of trillions of dollars, if it becomes NEcessary “. Fund sponsors themselves migrate to the largest and most powerful European financial institution Fitch Ratings analyst Victoria Baklanova, said.

Three largest – JP Morgan, Fidelity and Pioneer – does not hold a financial institution in the most vulnerable countries issued securities: Greece, Ireland, Italy, Portugal and Spain. JP Morgan and Fidelity also shorten the duration of the portfolio of the fund, to ensure that these funds will be redeemed for cash. Pioneer transfer its foreign exchange risk in the euro area outside of Australia, Canada and European countries. The highest yielding currencies in our table with little or no exposure to the debt of the euro.

If the paltry rate of return (the national average is 0.01%), still makes you want to run a cover, FDIC insured money market deposit accounts may be a better choice. Top-ranking accounts yield 1.1%.