NEW YORK - Dreyfus Corp. is going after assets traditionally kept in banks. The mutual funds giant is sending shareholders an eight-page booklet titled, "Bond Mutual Fund Basics - A Guide to Investing in Bond Mutual Funds."
Investors need not read far to get the message. The opening paragraph of the guide states that "traditional savings accounts, money market accounts, and short-term certificates of deposit may no longer be suitable for the needs of many of today's investors."
In a move toward capturing the lion's share of assets that are flowing out of traditional bank products, Dreyfus recommends bond mutual funds as a "more prudent investment alternative" for most people in today's low interest-rate environment.
Attacking banks' business directly, the guide states that "yields on bond funds are generally higher than rates on short-term CDs and bank money market accounts."