Making Cents: Impressive Yields Can Be Short-Term

One of the marketing tricks in the money market business is to boost yields a bit by waiving expenses. All expenses can be waived for a month, for example, which will attract some money quickly, then be reinstated a month later. The number of money funds waiving at least part of their expenses rose to a record 61.2% at the end of 1995, up from 60.6% in the middle of the year, according to IBC’s Money Market Insight newsletter.