Shawmut revving up 2 tax-free money market funds.

Catering to consumers' cravings for tax-free products, Shawmut Bank will roll out two new municipal money market funds next month.

"There has been a lot of demand in tax-exempts," said Robert Shurman, Shawmut's senior vice president for mutual funds. Mr. Shurman credited President Clinton's tax program with spurring the bank's decision to expand its product line.

To meet customers' needs, the Boston-based bank will introduce the Shawmut Massachusetts and Shawmut Connecticut Municipal Money Market Funds at the end of September.

The bank launched intermediate municipal income funds for Massachusetts and Connecticut customers in June.

Mr. Shurman expects that "more and more people will start moving toward tax-free investments," specially after seeing how the new tax plan affects them.

Annuities Planned

While customers may not recognize the benefit of shelters until tax time, Shawmut wants to be ready when they do.

The bank is scheduled to offer both fixed and variable annuity funds in the fourth quarter, Mr. Shurman said.

Federated Securities Corp. is the principal distributor for the banks' funds.

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