Investing in Cash

As a single investment, cash - whether held in Australian dollars or another secure currency - generally provides the lowest returns of any of the major asset classes, but is one of the most stable investments. As such, it is best employed in situations where high-risk could be detrimental, such as in the final few years of superannuation management prior to retirement.

Due to its stability, cash is opten used to offset risk in a managed fund, or to create some balance in a growth-oriented investment portfolio.

Helpful Cash-Related Resources

• XE Currency Converter - Calculate exchange rates from 260 countries. Figures updated daily.

Articles About Cash Management:

A Fixed Interest in Cash (NineMSN Money, 24.01.2001)
Fixed-interest investments and cash are worthwhile components of any balanced portfolio, and no investor should ignore the stability and liquidity offered by this asset class.

A Matter of High Interest (BBC News, 20.11.2000)
The consumer and small business banking market is rapidly shifting from one based on cheques, cash and regular trips to the local bank branch, to an increasingly electronic system. Online banking saves banks a great deal of expense in overheads and wages - but have they been passing these savings on to their customers?