Boost Your Cash Yield: Prime Money Market Funds Offer Higher Returns with Managed Risk

• Investors can achieve higher yields on idle cash by opting for prime money market funds, despite a slight increase in risk.
• Money market fund assets reached $7.79 trillion by Feb. 18, with many still offering over 3% yields.
• Prime money market funds invest in corporate commercial paper, offering a yield advantage over government funds.
• Post-2008 reforms by the SEC have made prime funds safer with higher liquidity and quality asset requirements.
• Due diligence is crucial; investors should examine fund holdings, ratings, and avoid funds offering unusually high yields.