Money Market Investments

Money Market Investments

These types of Unit Trust Investments are popular because of the many benefits that they offer over Traditional Bank Deposits. As at 14/4/2015 yields ranged between 4.99 and 7.46 %  per annum.
Visit : www.fundsdata.co.za/navs/ for up to date Yield Information on Unit Trusts.

10 Good Reasons to Invest in Money Market Funds

Money Market Funds offer Higher Yields than Bank Call Accounts and other Immediate Access Deposit Accounts.

Having started in South Africa in 1995, Money Market Funds are a relatively new development and already the sector has attracted R240 billion; this figure amounts to just under a quarter of the Unit Trust Industry and is a similar ratio to that in Europe and the USA.

According to Sean Segar, Head of Product at Nedgroup Investments, Cash Solutions; this popularity is because of the convenience of Money Market Funds and the many benefits that they offer over Traditional Bank Deposits. As Interest Rates remain stubbornly low at near 40-year lows, Investors are paying more attention to how to invest their Cash Holdings better. Money Market Funds are versatile vehicles that can be used by both large and small Investors, Individuals or Corporate Entities, for short or long periods.
 
Being Unit Trusts, Money Market Funds have to have Independent Trustees who represent the Unit Holders providing a further layer of control.
 

What is a Unit Trust Fund and How Does it Work ?

CLICK on the above LINK to read the Full Morningstar Article.

THERE ARE NOW MORE UNIT TRUSTS IN THE WORLD THAN THERE ARE STOCKS !!!

Choosing a Unit Trust can therefore be overwhelming when faced with so much choice.

Unit Trusts vs Bank Accounts : What's the Difference ?

CLICK on the above LINK to read the Full Article.

Money Market Unit Trusts 

CLICK the above LINK to read the Full Article.

Good Article by  Marriot Investment Company  -  a Division of OLD MUTUAL. 

See  www.marriot.co.za  for more information. 

 

Marriott Money Market Fund

Visit the Website for  Fund Information &  Factsheets.

An Investor should seek to match a long-term income need with a long-term investment strategy. The Marriott Money Market Fund is ideally utilised as a parking bay to protect capital from short-term volatility, and should not be seen as a long-term solution for Investors ( please consider the Capital Gains Tax implications of switching from one investment to another ).

SA has too many Unit Trusts

SA'S UNIT trust industry is proving you can get too much of a good thing. While unit trust funds have positively transformed the way South Africans invest, their numbers have grown to a bewildering excess. " There were 1025 rand-denominated Unit Trusts at the end of September, " says Leon Campher, CE of the Association for Savings & Investment of SA. It is double the number 10 years ago.

CLICK the above LINK to read the Full Article.

South African Unit Truts Experience Subdued Returns in 2014

The best performing funds for 2014 were Prescient China Balanced Feeder Fund (46.3%), Sanlam India Opportunities Feeder Fund (39.7%), and ABSA Property Equity (39.7%). These results aren’t surprising given the Shanghai SE Composite returned 52.9% in 2014 (in local currency terms) and the S&P BSE SENSEX returned 29.9% (in local currency terms).

Meanwhile the three worst performing funds included Old Mutual Mining (-14.8%), Momentum Resources (-15.8%), and Momentum Value (-15.9%). The two resources funds were casualties of falling resource prices and continued labour unrest in South Africa. Meanwhile Momentum Value was hit hard by the African Bank Collapse as the fund had the largest percentage exposure (10%) to the failed lender.
 

CLICK the LINK in RED above to read the Full Morningstar Article.

Ponzi Schemes and Protection for Unit Trust Investors

The Act limits the investments that unit trusts are allowed to make – a Fund Manager cannot, for example, invest the entire fund in a Ponzi Scheme or siphon money out of the fund to support a Ponzi Scheme.  Also see story about the Fund Manager - Cobus Kellermann.

CLICK the LINK in RED above to read the Full IOL Article.

www.MoneyMarket.co.za

CLICK the above Website LINK to find competitive Money Market Fund Rates.

The Money Fund  -   6.54 %

By investing in The Money Fund, you receive a market related interest rate based on the average of the best four South African Money Market Funds on a daily basis.

The funds highlighted in blue below ( visit the above website for the said information ) constitute the universe of funds in determining the money fund rate. The qualifying criteria are : A fund size of R1 billion or more ; Less than 25% invested in Corporate Debt.


* The gross rates as quoted are effective, indicative and correct as at 8 April 2015, rates and number of ranked funds are subject to change from time to time and MoneyMarket.co.za accepts no responsibility for changes in rates, fund size or fund rankings. MoneyMarket.co.za may levy an Administration Fee of up to 0.25% incl. vat, which will result in a reduction in yield. Past performance is not necessarily a guide to future performances.

 

All Money Market Funds - as listed below on the above website as at 14/04/2015.

Rank Fund Rate 

1.    Cadiz Money Market Fund    6.71%
2.    RE:CM Money Market Fund    6.70%
3.    Allan Gray Money Market Fund    6.58%
4.    Coronation Money Market    6.49%
5.    Standard Bank Money Market Fund    6.42%
6.    Gryphon Money Market Fund    6.40%
7.    PSG Money Market Fund    6.38%
8.    Oasis Money Market Fund    6.36%
9.    Investec Money Market Fund    6.34%
10.   Momentum Money Market    6.32%
11.    Glacier Money Market Fund    6.31%
12.    SIM Money Market Fund    6.28%
13.    ABSA Money Market Fund    6.24%
14.    Nedgroup Investments Money Market Fund (R)    6.22%
15.    Old Mutual Money Market Fund    6.21%
16.    Symmetry Money Market Fund    6.19%
17.    Marriott Money Market Fund    5.99%
18.    Prudential Money Market Fund    5.90%

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