Americans injected over $286 billion into money market funds due to fears of banking system collapse.
The US banking crisis has caused many investors to make changes to their investment portfolio in recent weeks. As reported by Cointelegraph, during this period, investors have poured more than $286 billion into US money market funds.
According to statistics, Americans have turned to Goldman Sachs, JP Morgan Chase, and Fidelity more to inject their capital into money market funds.
Goldman Sachs’ money market funds received $52 billion, indicating a 13% growth. JP Morgan and Fidelity’s assets increased to $46 billion and $37 billion, respectively.
Since the beginning of the coronavirus pandemic, this is the first time that such a significant amount is injected into US money market funds in just a month.
‘US money market investment funds usually have high liquidity and low risk, making them an attractive option in unfavorable economic conditions. Currently, American funds are offering their best returns in recent years as the Federal Reserve (US central bank) increases interest rates to control inflation.’
In the third week of this month, the total assets of money market funds increased by $117.42 billion and reached $5.13 trillion. The increase in the assets of these funds is the result of people’s fear of the collapse of the economic system in the United States and Europe, as three large banks in the United States have been closed in recent weeks.