How much cash to keep in portfolio

Attractive yields have drawn investors to cash, but with rates declining, they should consider how much they really want stashed in those accounts. While cash-equivalent instruments like money market funds and certificates of deposit once enjoyed yields over 5%, many are now around 4% or less. The annualized seven-day yield on the Crane 100 list of the 100 largest taxable money funds is 3.73%, as of Tuesday. How much money market funds pay follows the Federal Reserve 's monetary policy, which controls short-term rates. On Wednesday, the central bank cut the benchmark overnight federal funds rate by a quarter percentage point to 3.5% to 3.75%. Yet, even with declining yields, assets in money market funds are sitting at a record high. Total assets are now $7.65 trillion, equal to roughly 25%