Cash and money market funds

Important information: The value of investments can go down as well as up so you may get back less than you invest. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity's advisers or an authorised financial adviser of your choice.

Cash, or money market funds, offer you a relatively low-risk means of investing as they hold a range of cash and cash-like investments. Here are some interesting features that cash funds have.

Funds are diversified - cash funds invest in a wide range of cash-like investments such as high quality bonds and short term loans, which spreads the risk. 

Adaptable - cash funds can increase their income - or yields - quickly when interest rates rise. They may also fall more slowly when rates are cut. Although, eventually, yields tend to broadly reflect market conditions. It's worth shopping around, as yields will vary in line with a fund's objectives and investment policy.

Easy to access - if you urgently need your money, it typically takes up to seven working days to access it, depending on the fund you've invested in.

Tax-free returns - if you hold a cash fund in your ISA and SIPP, any returns are tax free.

Important information: An investment in a money market fund is different from an investment in deposits, as the principal invested in an money market fund is capable of fluctuation. Fidelity’s money market funds do not rely on external support for guaranteeing the liquidity of the money market funds or stabilising the NAV per unit or share. An investment in a money market fund is not guaranteed.