Retail investors favour security of cash funds

After years of being a fairly unregarded area of the market, of interest only to institutional inves...

After years of being a fairly unregarded area of the market, of interest only to institutional investors, cash funds have become one of the strongest sellers for retail investors. Three years of equity bear markets have left investors reluctant to risk further capital erosion. While the nominal yields are small at around 3%-4%, this is only slightly lower than what is on offer from many bond funds except the riskier high-yield portfolios. Cash is likely to remain a key asset class for many investors in the short term. M&G head of fixed interest Jim Leaviss says while investors should ...