Next year should be another good one for money market funds, even amid anticipated rate cuts by the Federal Reserve, experts predict.
An estimated $950 billion has gone into money market funds so far this year, bringing the total net assets to $5.87 trillion as of Dec. 20, according to the Investment Company Institute .
The Federal Reserve has indicated three rate cuts for 2024, which means the yields in short-term assets like money market funds and online savings accounts will follow suit.
That's because money market funds are competing with bank savings accounts for cash, not necessarily equities and fixed income assets, he said.
Certified financial planner Cathy Curtis, founder and CEO of Curtis Financial Planning, would look at money market funds for cash you will need in six months or less.
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