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Pros and Cons of Cash Management funds and why I like them
By betterspider  •  July 3, 2020
A couple of weeks ago, I wrote an article about the options for deploying cash in an environment of falling interest rates. To give you a little bit more background on that topic, falling interest rates is usually a response to central banks increasing the supply of credit available in the financial markets, to prevent companies from going bust if they lack access to credit (or capital). Now, there were a few options presented in that article, but I wanted to share a bit more about cash management funds and why they are my preferred method of deploying cash. Cash management funds are funds that deploy your cash into highly liquid (i.e. easily converted back to cash), ultra-safe (i.e. low chances of losses) instruments that generate yield. These instruments can range from holding actual cash, to money market funds and short-term bond funds as they move along the risk spectrum....
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By betterspider
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