Four Tips on Finding a Good Money-Market Fund

Money-market mutual funds hold about $3.9 trillion in assets, and have become increasingly popular places to park cash amid the beating that stocks and even bonds have taken lately. Here are tips from experts on how to find the best money funds:

1. FIND THE RIGHT FIT: While their yields are pretty low across the board, different types of money funds invest in different types of debt. So pick the right type to balance how much safety you're willing to give up for a slightly higher yield.

Many funds buy super-safe government debt such as Treasury bills, and generally carry the lowest yields -- currently averaging a minuscule 0.1 percent or so. So-called prime funds seek slightly higher yields but accept marginal risk by venturing into some forms of corporate bonds, which carry the risk of default. ...