The term ‘cash investments’ covers when you are investing in money assets in some form. This includes:
Bonds – or as they’re also known, fixed interest securities are a way for companies, governments and local bodies to raise money. They offer bonds for a fixed period of time (from one to ten years) with a set interest rate. They have been classed as relatively low risk in the past, but it’s important to check the credit rating of the organisation before you invest. You can buy and sell bonds, and can make or lose money on their sale. Any profit made will attract taxation from the government. Having bonds as part of your portfolio can provide balance, as they often perform well when shares and property are slow. There are many types of bonds, such as debentures, and capital notes. There are also other types of cash investments such as mortgage investments, and cash management trusts. Our financial advisers can explain how they work and which option is best for you.