Money markets offering a safe haven

Cash funds have enjoyed renewed interest in recent months against a backdrop of falling equity markets. As Autif requires 95% of the fund to be invested in money market instruments, such as cash, bank deposits and floating rate notes, returns from the sector are inevitably homogeneous. The difference in returns over the three years to the end of October represent the least divergent sector performance in the mutual fund spectrum. The top performing fund, M&G High Interest, outperformed the worst performer, Abbey Global Growth and Security, by just 6.92% in that time. Moreover, individ...