What changes in money market funds mean for investors

Bankrate.com
November 07, 2016

It's not exactly a makeover for these low-risk investments, but money market funds are getting a refresh.

The changes -- courtesy of the Securities and Exchange Commission, or SEC -- are designed to make a conservative, low-risk investment even safer and more reliable for retail investors.

The new rules go into effect Oct. 14.

The funds you're likely to invest in, whether in an IRA or 401(k), will now be in U.S. Treasuries or government bonds, instead of corporate or municipal bonds, and will never be subject to any redemption fees. Institutional investors definitely will see bigger changes, since the funds they invest in hold corporate-debt securities. Read More.