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Money market funds Assets in retail money market funds grew to $1.99 trillion, according to the latest data from the Investment Company Institute . Further, even as money market funds offer relative safety, they can still face some risk. Don't confuse money market funds with money market accounts. Though money market accounts – which are offered by banks – are protected by the Federal Deposit Insurance Corporation, up to $250,000, money market funds are not. Certificates of deposit and high-yield savings accounts Liquidity should be a big factor for investors eyeing bank products like CDs and high-yield savings accounts.

Persons: Jamie Hopkins, Hopkins, Don Grant, Jordan Benold, Lehman, Danika Waddell, BancShares, Waddell Organizations: Federal, Carson Group, Sabre, Investment Company Institute, Investors, –, Lehman Brothers, Federal Deposit Insurance Corporation, Xena, BMO, Ally Financial, CIT Bank, Synchrony, Ally, Capital

☆ The cost of investing has been falling. Here's what investors should know
▼ + stars: | 2023-04-26 | by ( Pia Singh | ) www.cnbc.com time to read: +5 min

High fees can take a bite out of your portfolio returns, but the good news is that it's becoming cheaper to invest. Financial services firms charge clients a fee to invest their funds, typically withdrawn from their investment assets. Increased competition, notably in the ETF market and between direct-sold mutual funds, has also contributed to lower investment costs, Hauptman said. "It's important for investors to not just look at one piece of the investing puzzle to the extent that they're getting products and services," Hauptman said. Watch for other costs: If you're investing through a brokerage account, keep an eye out for transaction fees, which can be very painful for the most active investors.

☆ U.S. financial regulators to tighten rules on non-banks, systemic risks
▼ + stars: | 2023-04-21 | by ( David Lawder | ) www.reuters.com time to read: +4 min

WASHINGTON, April 21 (Reuters) - Top U.S. regulators on Friday proposed new rules to speed the assessment of financial stability risks and make it easier to designate non-bank institutions as systemically important, subjecting them to Federal Reserve supervision. The multi-regulator Financial Stability Oversight Council released the proposals for public comment just over a month after two regional bank failures sparked the biggest financial system contagion threat since the 2008 financial crisis. U.S. Treasury Secretary Janet Yellen has raised concerns about non-bank financial institutions, including hedge funds, because of their lack of supervision and the potential for systemic spillovers from firms in distress. NOT USHedge fund, mutual fund and asset manager trade groups responded by saying that regulators should look elsewhere for threats to financial stability. The new framework also specifies vulnerabilities that FSOC and member regulators would consider when evaluating potential stability risks.

☆ Signs of banking stability as regionals gained this week and money market inflows reversed
▼ + stars: | 2023-04-21 | by ( Bob Pisani | ) www.cnbc.com time to read: +1 min

A couple signs of stability for those worried about the banking crisis: regional bank stocks are mostly up this week, and inflows into money market funds have reversed. The Regional Bank ETF (KRE) is still 25% lower than it was in early March. Another sign of calm: money market inflows have stopped. Total assets in money market funds fell by $68.64 billion in the week ended April 19, according to the Investment Company Institute. From late February to early April, net assets of money market funds increased by about 10%, to $5.27 trillion.

☆ Money-market funds' assets fall for the first time since the banking turmoil started, snapping a trend of record inflows
▼ + stars: | 2023-04-21 | by ( Zinya Salfiti | ) www.businessinsider.com time to read: +2 min

US money-market funds just saw their assets drop for the first time since early March, snapping a trend of record inflows. It's also the biggest such fall since July 2020 as US taxpayers were due to file their taxes in the past week, according to Bloomberg. Money-market funds saw large inflows in recent months as high yields and the banking jitters fueled a flight of money into them. In the weeks following SVB's collapse, money-market funds saw accelerated inflows, with their total assets hitting a record high of $5.28 trillion as of April 12, per the ICI. But money-market funds had been raking in cash even before the banking turmoil thanks to the high yields they offered, following the Federal Reserve's interest-rate increases over the past year.

☆ Parking your cash in these investments is paying off: 3 ways to find the best place to hide
▼ + stars: | 2023-04-19 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Apple, working with Goldman Sachs, entered the fray this week and launched a savings account with a 4.15% annual percentage yield. Even money market funds, where investors can park cash that's in their brokerage accounts, are paying attractive rates. With an array of places to earn yield, investors need to weigh a few factors before deciding where they ought to keep their cash. Note that the rate paid to you on a high-yield savings account can change once you've opened it. Meanwhile, savings accounts may not hit you with penalties – but you could still face limitations on the number of withdrawals and transfers from these accounts.

☆ American savers are missing out – because bank interest rates are trailing the Fed's benchmark by a record amount
▼ + stars: | 2023-04-15 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

That means there's a record gap between the rates they offer customers on deposits and the Fed's benchmark. The interest rates that banks pay on customer deposits are lagging the US central bank's benchmark by a record amount, its economists said in a new paper. Assets in money-market funds hit a fresh high of $5.25 trillion last week, according to data from the Investment Company Institute. "The spread between the Fed funds rate and the deposit rate is at a modern high of above 2%," Kang-Landsberg, Luck, and Plosser said. Deposit interest rates could be set to surge the rest of this year as the gap to the Fed's benchmark starts to close, according to the researchers.

☆ These low-risk funds offer more than 4% in returns — and are seeing massive inflows
▼ + stars: | 2023-04-05 | by ( Ganesh Rao | ) www.cnbc.com time to read: +3 min

A new report from Bank of America shows that $18 billion per day on average was moved into money market funds since Mar. Money market funds also park their government bonds with the respective central banks through a program called a "reverse repurchase agreement." The table below shows over 35 widely traded money market funds available as ETFs worldwide. Regulators in the United States also prevent money market funds from holding more than 5% of their assets in illiquid assets. Vanguard, another provider of money market funds, also says the funds are "not recommended for investors seeking an increase in the value of investments over the long-term."

☆ Money-market funds rake in $300 billion in just three weeks as banks face deposit 'bleed-out'
▼ + stars: | 2023-03-31 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +2 min

A record $304 billion has flowed into money-market funds in just three weeks as the banking turmoil spurs deposit withdrawals. Investors are fretting about the safety of their deposits after SVB's collapse, fueling a deposit run into money market funds. The flows into money-market funds, while still substantial, moderated in the most recent week in focus to $66 billion from almost $120 billion in the prior period. "Money is leaving the banks and will every day/week as long as banks are not offering a deposit rate competitive with market rates. Meanwhile, outflows from bank deposits have increased to $17.5 trillion through March 15, and have reached $5.4 trillion at smaller banks.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, March 28, 2023. Brendan McDermid | ReutersWall Street investors believe the stock market is headed for losses after a positive first quarter, seeing cash as the best safe haven right now, according to the new CNBC Delivering Alpha investor survey. Zoom In Icon Arrows pointing outwardsThe Fed enacted a quarter percentage point interest rate increase last week, while signaling one more rate hike coming this year. Many investors believe the central bank should reverse course immediately as more rate hikes will exacerbate banking problems and cause a severe economic slowdown. With an overall bearish view on the market, 60% of the investors said cash is their safe haven right now.

☆ Investors are pouring record amounts into money market funds as rates rise. How to pick the best one
▼ + stars: | 2023-03-28 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Investors in search of relative safety and attractive yields are piling into money market funds at record levels. In particular, they fled to government money market funds – which hold U.S. Treasurys – with retail assets surpassing $1.25 trillion. Here's what you should know as you browse: Three varieties In addition to government money market funds, there are also tax-exempt money market funds. She noted that there are also some state-specific money market funds, which might make sense for residents in high-tax jurisdictions. Money market funds also shouldn't be confused with money market accounts – which are interest-bearing accounts you can open at a bank.

☆ Investing isn't free. But here's why 20% of investors think it is
▼ + stars: | 2023-03-25 | by ( Greg Iacurci | ) www.cnbc.com time to read: +6 min

Investment fees may be a worthy addition to that list in the modern era — though not all investors are aware of this near-universal fact. These firms — whether an investment fund or financial advisor, for example — generally levy investment fees of some kind. watch now"And that makes you much less sensitive to the fees you're paying — in amount and whether you're paying fees at all." Here's the good news for many investors: Even if you haven't been paying attention to fees, they've likely declined over time. This is largely due to investors' preferences for low-cost funds, particularly so-called index funds, Morningstar said.

☆ Premarket stocks: Americans are going all-in on cash. That could spell more trouble
▼ + stars: | 2023-03-24 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

The goal of a money market fund is to provide investors with a relatively stable investment option that offers higher returns than traditional savings. What’s happening: Since the Fed began to raise interest rates a year ago, the amount of money in money market funds has increased by roughly $400 billion. Goldman Sachs economists wrote in a note on Thursday that Americans could sell as much as $1.1 trillion in stocks this year and put that money into credit and money market assets instead. Money market funds are deeply interconnected with the wider financial system, and often face the same risks as banks. The Federal Deposit Insurance Corporation, a US government agency that insures deposits in banks and savings associations, does not insure cash invested in money market funds.

☆ People are pouring cash into money market funds at the highest rate since the start of COVID as depositors flee banking turmoil
▼ + stars: | 2023-03-17 | by ( Carla Mozée | ) www.businessinsider.com time to read: +2 min

Money market funds drew in the most cash since early 2020 as depositors sought safety during a shakeup in the banking industry. About $121 billion was poured in money market funds over the past week, the Investment Company Institute said. Last week's shutdown of Silicon Valley Bank was the first bank seizure since 2008. For the week that ended on Wednesday, $120.93 billion flew into money market funds, the Investment Company Institute said Friday. The push of cash into money market funds resulted in a record $5.01 trillion in total assets tracked by ICI.

☆ Fund industry says proposed U.S. SEC rules would harm retirement savers
▼ + stars: | 2023-02-16 | by ( John Mccrank | ) www.reuters.com time to read: +3 min

NEW YORK, Feb 16 (Reuters) - The mutual fund industry is warning the U.S. Securities and Exchange Commission that new proposed rules aimed at better preparing open-end funds to weather distressed market conditions would harm investors saving for retirement. A November proposal from the SEC would require mutual funds, and some exchange-traded funds, to ensure that at least 10% of their net assets are highly liquid. It would also require a hard daily close of 4 p.m. Eastern time for mutual funds, and the use of "swing pricing." SEC Chairman Gary Gensler argued at the time the tweaks would ensure such funds are resilient and protect investors. But industry groups and fund managers criticized the proposal in public comments, describing them as misguided and harmful.

☆ Investors have tough choices now with yields for money market funds on the rise
▼ + stars: | 2023-02-05 | by ( Anna Gleason | ) www.cnbc.com time to read: +1 min

The " Fast Money " traders are looking to capitalize on the rising yields in money market funds and dividend-paying stocks. The largest taxable money market funds, as ranked on Crane Data's 100 list, are yielding an average 4.18% as of Feb. 2 — returns not seen since the financial crisis. Money market funds jumped to an all-time record $4.82 trillion in total assets the week ended Feb. 1, according to the Investment Company Institute. Higher-return dividend payers, which carry more risk, may be an option for investors looking for safety right now, too. "I won't hold it against them, however, if they do have a great dividend," Finerman added.

☆ Here's how much you would lose by missing just a few of the best market days each year
▼ + stars: | 2023-01-31 | by ( Jeff Cox | ) www.cnbc.com time to read: +1 min

Investors getting whipsawed by market gyrations over the past two years have been moving to the sidelines and stowing away their cash. The firm looked back at two decades of market behavior prior to the sharp slump of 2022 and found that missing even a few rally days could cost hundreds of thousands of dollars in returns. Using a $100,000 investment as a base, the firm found that missing the best five days of the 2002-2021 period cost more than $200,000, while missing the best 25 days saw a loss of returns totaling nearly half a million dollars. Missing those top-performing days can have a meaningful impact across time, as shown below," he added. DeSpirito said the data show that, despite the turbulence of the past few years, "it's time in the market that matters more than timing the market."

☆ Interest rates are high. Here’s a relatively safe way to squeeze more from your cash
▼ + stars: | 2023-01-25 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

Be aware that money market accounts offered by a bank are subject to protection from the Federal Deposit Insurance Corp. This isn't the case with money market funds, which can't guarantee that you won't lose money. When shopping for a money market fund, look for offerings that hold high quality underlying investments, and be sure to keep an eye out for fees. Money market funds that Lawrence likes include the Federated Hermes Prime Cash Obligations Fund (PCOXX) and the Fidelity Tax-Exempt Money Market Fund Premium Class (FZEXX). Unless they're tax exempt, money market fund income is subject to federal, state and local taxes.

☆ High yields have investors piling into money market funds. Here's what you need to know
▼ + stars: | 2023-01-25 | by ( Michelle Fox | ) www.cnbc.com time to read: +7 min

High yields and a volatile stock market have investors piling into money market mutual funds. Yet for retail funds, inflows are still climbing — the week ended Jan. 18 saw a $4.97 billion increase into retail money market funds, to bring net assets to a total of $1.74 trillion. One thing to keep in mind is that a money market fund is not FDIC-insured, while a money market account at a bank is insured. "If your money market fund yield is lagging, you probably have a high expense money fund." The net asset value of money market funds is normally maintained at $1 share.

☆ Investors are holding near-record levels of cash and may be poised to snap up stocks
▼ + stars: | 2023-01-18 | by ( Patti Domm | In | ) www.cnbc.com time to read: +2 min

But the question is this: Will those investors return any time soon, especially with sentiment still so sour and stocks at risk of a major selloff? Total net assets in money market funds rose to $4.814 trillion in the week ended Jan. 4, according to the Investment Company Institute. At the same time, money market funds are actually generating a few percentage points of income for the first time in years. Consider that sweep accounts, where investors hold unused cash balances in their brokerage accounts, can park those amounts in money market mutual funds or money market deposit accounts. To me this was people basically selling the market at the end of the year, and they just parked it in the money market funds.

☆ Families can make a tax-free rollover from 529 plans to Roth individual retirement accounts starting in 2024
▼ + stars: | 2022-12-23 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

Maskot | Maskot | Getty ImagesMillions of 529 accounts hold billions in savingsThere were nearly 15 million 529 accounts at the end of last year, holding a total $480 billion, according to the Investment Company Institute. watch nowHowever, that investment growth is generally subject to income tax and a 10% tax penalty if used for an ineligible expense. A transfer would skirt income tax and penalties; investments would keep growing tax-free in a Roth account, and future retirement withdrawals would also be tax-free. The rollover can only be made to the beneficiary's Roth IRA — not that of the account owner. Some education savings experts think 529 accounts have adequate flexibility so as not to deter families from using them.

☆ 21% of investors don't think they pay investing-related fees. Here's why they're wrong — and how it costs them
▼ + stars: | 2022-12-19 | by ( Greg Iacurci | ) www.cnbc.com time to read: +6 min

Damircudic | E+ | Getty ImagesMore than a fifth of investors don't think they pay any fees for their investment accounts, an industry survey has found. An additional 17% of investors in the recent poll said they didn't know how much they paid in fees. These firms — whether an investment fund or financial advisor, for example — generally levy investment fees of some kind. Here's the good news for many investors: Even if you haven't been paying attention to fees, they've likely declined over time. This is largely due to investors' preferences for low-cost funds, particularly so-called index funds, Morningstar said.

☆ 31 stocks that mutual funds are heavily betting on, driving their best-performing year since 2007 according to Goldman Sachs
▼ + stars: | 2022-11-25 | by ( Laila Maidan | ) www.businessinsider.com time to read: +3 min

Mutual funds are set to have their best year of outperformance relative to benchmarks since 2007. The report indicates that 56% of large-cap mutual funds outperformed their benchmarks compared to a 36% outperformance rate seen since 2007. Meanwhile, 66% of large-cap value funds outperformed the benchmark Russell 1000 Value index. Below are 31 of the 50 stocks listed in Goldman Sachs' Mutual Fund Overweight Positions basket. The list is based on the investment bank's analysis of 548 large-cap core, growth, and value mutual funds with $2.5 trillion in equity assets.

☆ Britain to go it alone for now on reining in 'shadow banking'
▼ + stars: | 2022-11-02 | by ( Huw Jones | ) www.reuters.com time to read: +5 min

Britain hopes the LDI crisis creates momentum for comprehensive global reform to improve data and liquidity in the sector. In Britain the Financial Conduct Authority (FCA) regulates UK-based managers of LDI funds, and The Pensions Regulator (TPR) regulates pension schemes. UK regulators face pushing ahead alone, for now, hoping global reforms eventually pressure others to follow suit. Most LDI funds are listed in European Union states like Luxembourg and Ireland, meaning structural changes would rely on the bloc. The Central Bank of Ireland said it has stepped up data collection, analysis and engagement with LDI funds.

Nov 2 (Reuters) - The U.S. Securities and Exchange Commission on Wednesday proposed new rules aimed at better preparing the mutual fund industry for distressed market conditions, including a new pricing mechanism that has drawn opposition from fund managers. The market disruptions of March 2020 reinforced the fact that liquidity can deteriorate rapidly, said the SEC, which adopted the proposal in a 3-2 vote. The proposed rule would require mutual funds, and some exchange-traded funds, to ensure that at least 10% of their net assets are highly liquid. The new requirements would also demand a hard daily closing time for mutual funds, and the use of "swing pricing," which involves adjusting a fund's value in line with trading activity so redeeming investors bear the costs of exiting without diluting remaining investors. Mutual funds managed $4.1 trillion, or 63%, of assets held in 401(k) plans at the end of June, as well as $5.1 trillion, or 43%, of IRA assets, according to the Investment Company Institute.

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