NEW YORK ( TheStreet) -- If you are tired of the puny yields on money-market funds, you might be tempted to shift your cash to an ultra-short bond fund. According to Morningstar, ultra-short funds yield 1.32%. In comparison, most money markets yield less than 0.05%. But ultra-short funds can lose money in downturns, while money markets nearly always hold their value.Recently fund companies have begun offering an alternative, a new breed of ultra-short funds that yield a bit more than money markets while taking less risk than traditional competitors. The new entrants include JPMorgan Managed Income Fund (JMGSX), which yields 0.48%, and Fidelity Conservative Income Bond (FCONX), which yields 0.83%. Other fledgling funds are Oppenheimer Short Duration (OSDYX) and Putnam Short Duration Income (PSDTX).
A Tamer Breed of Ultra-Short Fund
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