Japan's Largest Bank Revives Retail Money Market Funds After Decade-Long Halt

Mitsubishi UFJ Financial Group (MUFG) will restart sales of money market funds (MMFs) to individual investors in Japan this October. This marks the first such offering from a major bank in nearly ten years. The move follows a recent change in Japanese regulations. The rules now allow banks to sell these funds directly at their branches. MUFG, Japan's largest bank by assets, aims to provide customers with a new short-term investment option. A money market fund is a type of investment that pools money to buy safe, liquid assets like government debt. It is designed to offer stability and easy access to cash, similar to a savings account, but with the potential for slightly higher returns. Industry analysts see MUFG's decision as a significant shift. It signals a renewed push by major banks to compete in the growing market for individual investment products. Other large banks are now expected to follow MUFG's lead and launch similar funds.