Personal Finance | Money market unit trusts and income funds are alternative interest-generating investments that investors could consider, especially if they want flexibility to access those funds, writes Maya Fisher-French.
If you were invested in a money market fund, you would only experience a reduction in the yield, without a gain in the capital value of your investment.Money market unit trusts and income funds are alternative interest-generating investments that investors could consider, especially if they want flexibility to access those funds.A money market unit trust is not a bank account, but a collective investment scheme offered by investment management companies.
As these funds invest in short-duration money market instruments, the returns will be linked to movements in interest rates. The funds are invested with various financial institutions and the fund manager targets a return above a bank deposit. The fund managers negotiate wholesale rates with banks and receive better interest rates than an individual.
However, as money market funds are diversified across multiple financial institutions, the risk can be lower than if you had all your money with one institution that defaulted. If a money market fund is offering an interest rate well above other money market funds, it could suggest that a higher risk is being taken, so do your homework.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
‘Easy’ for Pumas skipper to follow WillieShane Kirkwood is poised to emulate DHL Stormers loose forward Willie Engelbrecht and capture a hallmark move in his career after Saturday’s Currie Cup final, reports DEVIN HERMANUS.
Read more »
YOUR MONEY: When a personal loan is the better optionPersonal loans come with pretty high interest rates. But that may still be better than a home loan extender for a renovation job
Read more »
THE FINANCE GHOST: Avoiding the bogeysInvesting is like golf, where every single shot contributes to the overall score and a disastrous hole can easily ruin an entire round
Read more »
6 smashin’ pumpkin recipes that are easy on your pocket | YouThis versatile veggie can be used in so many different ways – and it’s easy on your pocket. | YouMagazine
Read more »
Lindiwe Zulu cans important briefing at last minute because of 'personal issue'Lindiwe Zulu cans important briefing at last minute because of 'personal issue': A 'personal issue' forced social development minister Lindiwe Zulu to postpone at the last minute on Sunday an important media briefing meant to outline progress made in…
Read more »
Lindiwe Zulu cans important briefing at last minute because of 'personal issue'A 'personal issue' forced social development minister Lindiwe Zulu to postpone at the last minute on Sunday an important media briefing meant to outline progress made in addressing failures to tackle money laundering and terrorism financing.
Read more »