Buying money market funds

There are many good ones from which to choose but here are some tips to help you make the best decision.

Select no-load funds. Never pay a sales commission for a money market fund or lock yourself into a back-end load. There are plenty of no-load entries from which to choose. :Plus, most financial advisors will acquire money market funds for you at no charge, even those that are nominally classified as load funds.

Choose funds with a low MER. Expenses really make a difference in funds that pay a low return, such as money funds. So look for funds that have a low management expense ratio.

Hedge your currencies. If you’re concerned about the future of the Canadian dollar you may want to hedge your currency bets by including a U.S. dollar money market fund. Just be sure to select only those that are 100% eligible if you’re investing within a registered plan. You don’t want to waste precious foreign content room here.