Ronel Talks Money: Money Market Funds
Money market funds / accounts can be of great value for both your personal finances as well as for businesses. Especially to use for shorter term savings goals, for effective cash flow management and also as emergency funds.
In this Ronel Talks Money interview we talk to Sidney McKinnon, Senior Fixed Income Portfolio Manager of the Cadiz BCI Money Market Fund, to learn more about money market funds. Cadiz Asset Management, established in 1996, is a fund manager that manages fixed income, multi asset and equity funds on behalf of its institutional and individual clients.
A few of the questions we answer in this interview:
- Explain to us the concept of a money market in layman’s terms? Also touching on a fixed income portfolio.
- How is a money market different from a standard savings account, notice deposit or fixed deposit?
- What is the biggest difference between a money market fund and other types of unit trust funds?
- What are the pros and cons of a money market?
- Is it more suited as a short-term or longer-term investment?
- Are there any risks involved?
- For somebody interesting in investing in a money market – how do you start and what is the minimum investment requirement?
- Is it easy to invest and disinvest? How long will it typically take to have access to your money?
- What are the returns an investor can expect when investing in a money market?
- How do you select a good performing money market fund?
- Except for interest rates, are there any other factors that can impact on the performance of a money market fund?
- What are the costs / fees involved?
- Tell us about the tax implications and money market accounts as a tax-free savings investment option?
- Money market account at your bank compared to at an asset manager – what are the differences?
- Investing in a money market fund at an asset manager – can anybody do it and do you need a broker / financial advisor?