Money market fund rates do fluctuate and it is important to invest in tried and true ventures that will provide the best money market fund rates. Investors will need help, especially if they are new to the investing scene or not all the savvy. There are many different money management companies including banks who specialize in this area.
BMO – Bank of Montreal specializes in surveying the money market fund rates. They have several different schemes available.
The Short term Federal Bond Index (ETF) was devised to imitate the DEX short term Federal Bonds Index. This fund is backed by the Government of Canada and invests in debt securities which will mature in anywhere from one to five years.
The money market fund rates for these Canadian bonds are payed in Canadian dollars and are fixed semi-annual rates. They have a AAA rating and require a $50 million dollar minimum size requirement per issue. These money market fund rates are particular to Canadian crown and non agency bonds and supranational entities. Rest assured that these securities have been weighted against the relative market capitalization (net worth) concerned. They are also rebalanced every single day; 11 fixed Canadian income broker/dealers give their input on pricing. These bonds and securities are a safe investment for American investors.
Another Canadian leader in money market fund rates is Royal Bank of Canada (RBC). Investors who have a minimum of 10 million dollars to invest per mutual fund will do well to look into the Series D RBC Funds portfolio. The funds have low management fees (up to 1.45 percent). Furthermore, these funds do not have service charges, transaction fees or loads. Besides the money market rates, these rates can apply to over 40 funds including, growth and equity funds, balanced and income funds.
Bankrate.com is an good source to find the money market rates for American short term and long term investments.
Though American money funds are not FDIC-insured, they do not pose much of a risk and are a safe investment. Money market funds on the whole pay a better interest rate than the bank money fund account. These American funds are secured, regulated, and required to invest in debt securities including USA Treasury Bonds and certificates of deposits. When investing in these American funds, it is always important to note if there are extra fees such as management fees called the expense ratio. These management fees, will take away from the funds yield and a wise investor will need to seek out a company that have a low expense ratio, or no expense ratio at all.