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'DIY' money-market funds

I read your previous article on "some ideas on investing for short-term income" in money-market funds. When I went to [blank] Savings and Loan, they couldn't believe what you had written. I wound up buying a $1,000 certificate of deposit at 7.95 percent. They said your article was "impossible." Please clarify what you said. L.H.

Money-market mutual funds offer competition to regulated saving and loan associations and banks. When interest rates are high, as they are now, the money-market funds can and do offer more income from invested funds. But they are not insured and do carry some risk, which is more acceptable for the additional income.

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However, you cannot invest in money- market funds at a bank or S&L. These no- load money-market funds are do-it-your- self (DIY) investments. You must locate the funds, complete the application, and send your money off to the trustee bank yourself. Completing the application is simple, but a clerk is not available to do it for you. You can write or all toll free for a prospectus and application blank to the funds that advertise in this newspaper, the Wall Street Journal, and others. Or write to the No-Load Mutual Fund Association, Valley Forge, PA 19481, for a list of money-market funds.


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