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Three points for buying money market funds

By Han
Published: 10:30, June 11th, 2008

GUANGZHOU (Fund China) – Because of their low risk and good liquidity, money market funds have become the low-risk investment tools of many families. Nowadays, there are over 30 money market funds. So, how to select the right money market funds? Some experts give us three suggestions.

First, investors should know the brand and performance in the past of the manager, especially his ability to control risk. Second, investors should know whether the fund companies improve their product lines. Third, avoid selecting the fund by its recent return ratio. Finally, investing in money market funds is to gain a higher return with the lowest risk. So, investors should not ignore the potential risk while targeting high return ratio.

Copyright Fund China 2009.

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