Cash Investments are
Low Risk
Cash investments are low risk and are lower
interest rate investments. They are on call and therefore can be
withdrawn almost immediately on request.
They can be made up of:
- On call bank accounts.
- Finance company on call deposits.
- Cash management funds.
- Unit trusts.
- Deposit funds.
A cash investment is money invested in term deposit and bank
bills for a short period of time. The interest they pay, plus the
initial invested amount provides the return on the investment. They
typically earn low interest returns over the longer term and
experience lower risk with little volatility.
This type of investment is best for investment security.
Investing in cash and cash investments is most useful for producing
a regular income and protecting your capital base. You should
invest in this type of investment if you have to call on your money
in the near future for any of your needs.
They are also best suited for the funds needed immediately for
your 'rainy day' or for any emergency. They offer easier access to
your funds, but at a low
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