When the customer figures out why the yield is dropping, it's too late Inspect the prospectus Michelle Smith, managing director of the Mutual Fund Education Alliance, a trade group in Kansas City, Mo., says investors rarely take the time to read the prospectus before investing. Anything that lowers the fees even temporarily is a good thing. I'm not paying the management fee. While yield is key to any investment, Smith points out, there are more things to consider when buying a money market fund. Look at what works for you.
Some money markets have higher risk but they're relatively safe.
U.S. Treasury funds, for example, are going to offer a high degree of safety. All money markets aren't alike. You'll also want to make sure a check-writing option is available if that's important to you. Many funds have restrictions on the number of checks you can write and the minimum amount of the check. A lot of people invest in money markets now with the idea of leaving the money there.