Money market funds aren’t right for long-term savings
WITH Absa recently announcing the closure of its R80billion money market fund, I thought it apt to review what this type of a fund is, how it differs from a bank deposit, and the role it should play in an investment portfolio.
One of the reasons Absa gave for closing its fund was it found that the investors did not expect it to behave as it did; they expected it to behave like a bank deposit. One has to question why investors were invested in the fund
