Money Market Funds Make No Sense

EDITOR'S VIEWS: Are things so bad that you need to put your cash in a Money Market fund? And why investing doesn't always have to be for retirement

Holly Black 19 July, 2019 | 10:19AM

editor

Geeky confession alert: I love reading our monthly flows data. For all the movements of stock markets and speculation of fund managers and commentators, you can’t beat looking at the numbers in black and white and seeing where exactly investors are (and aren’t) putting their money to get an insight into sentiment.

Money Market Madness

Of course, even this is down to interpretation. As a whole, funds have suffered net outflows every month so far this year. It would easy to assume this is purely driven by negative sentiment – that worries about Brexit, trade wars and bond yield inversions are causing investors to run for the hills. That’s probably a major part of it. But let’s not forget that we have spent the past decade enjoying a record-long bull run – maybe people are just sensibly taking some profits too. I know I’ve certainly done that this year, particularly in a couple of my investments that have performed particularly well.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Premier UK Money Market A Acc128.66 GBP0.01

About Author

Holly Black  is Senior Editor, Morningstar.co.uk

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