Did Cash-Heavy Funds Outperform?

Cash drag can be a problem for some funds, but did having a higher allocation to cash provide protection in the sell-off? 

Holly Black 28 April, 2020 | 9:31AM

cash

There was little place for investors to hide in the sell-off that defined the first quarter of 2020, as the price of stocks and bonds plunged across the board. 

Such was the extent of the stock market turmoil that number-crunching from Moneyfacts reveals cash Isas delivered greater returns than the average stocks and shares Isa in the 2019/2020 tax year. The average investment Isa was down 13.3% in the year, while a cash Isa would have grown your money on average 1.21%.

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About Author

Holly Black  is Senior Editor, Morningstar.co.uk

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