the WSJ writes: These are grim times for money-market funds: Not only are yields bumping along near zero, but the number of funds is shrinking by the day.
For investors who need to park some cash safely, better opportunities may lie elsewhere, in bank products or short-term bond funds.
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Not long ago, money funds were so hot that even eBay Inc.'s PayPal unit launched one. But in the past three years, the number of funds has dropped by almost 20% to 652, according to the Investment Company Institute, an industry trade group.
The problem? The funds are no longer lucrative—for shareholders or for fund firms. Since the financial crisis, the yields on taxable money-market funds have been painfully low, hovering around 0.04%—far less than the average of 5% in 2007—according to research firm Crane Data LLC.And even those minuscule returns have been inflated by fund-company subsidies….
Find out more at http://online.wsj.com/article/SB10001424052702303763404576418172992611898.html
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