By cash we mean the holding of liquid money at short to medium term rates. The following are some examples of cash investments:
- Cash management accounts
- Term deposits
- Registered mortgages
- Government bonds
- Promissory notes
- Bills of exchange
- Annuities (Swiss annuities)
Cash investments are considered low risk (unless of course your funds are deposited with the ‘Bank of Whoop Whoop’) – highly liquid and normally have low to medium income returns with a zero growth element.
This type of investment is ideal for accumulating low risk reserves and can be used as a buffer against more aggressive investment strategies.
We always recommend that you seek professional advice as this blog is for general information only