Compare Long-Term Earning Averages of Money Market Funds

No matter how much you have to invest, it makes sense to keep some of your assets in safe and stable investments like money market funds. Money market funds provide a competitive rate of interest while keeping your money safe from loss. But not all money market funds earn the same return, and reviewing the historical returns of competing funds can help you get the most for your money.

• 1

  Contact the company offering the money market fund and ask for a prospectus. The prospectus will list the past performance of the money market fund.

• 2

  Turn to the front of the prospectus and review the historical performance of each money market fund. Calculate the average annual return based on the earnings yield for each year listed in the prospectus.

• 3

  Compare the performance of each fund you are considering. Choose the fund that best meets your needs based on yield and required minimum deposit.