What are cash alternatives? Money market funds, bonds and ISAs explained.
Many savers want better returns than cash but aren't comfortable taking stock market risk. So what are the alternatives?
In this episode of the AJ Bell Money Matters podcast, Danni Hewson is joined by Alex Farrell from the AJ Bell Investments team to explain cash alternatives that can be held within a Stocks & Shares ISA.
They discuss what money market funds are, how short-dated bonds work, how these investments compare with cash savings, and why some investors use them as a stepping stone between saving and investing.
You'll learn:
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What a money market fund is
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How short-dated bonds work
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The key differences between cash savings and investments
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Risks and potential benefits of cash alternatives
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How money market funds can be used within a Stocks & Shares ISA
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Whether cash alternatives could suit short-term savings goals
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Why confidence can be a barrier to investing, particularly for women
If you've ever wondered where to keep cash inside a Stocks & Shares ISA or want to understand low-risk investment options, this episode explains the basics in clear, straightforward language.