Investments of the Money Market Fund

The money market fund is invested in short term bonds and treasury bills. Here are the current yields from these investments:

* treasury bill: 2.22% (3 months) 2.25% (1 year)
* government bonds 2.58% (5 year)

Daily interbank rates: fluctuate between 2.25 to 3%

Depending on the mix of the instruments, the return of the fund should move within the above range. The fund manager deducts 0.25% to cover its expenses.

Alternative: If you do not wish to invest in the money market fund, you can buy the treasury bills or government bonds directly. You have to pay some transaction fee to the stockbroker or the bank.