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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 fund features

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.

Cash funds on our platform

Cash funds proved popular with our ISA and SIPP customers in 2023. Investment Director Tom Stevenson has also chosen a cash fund as one of his four fund picks for 2024. You can read Tom's picks here.

Here’s a list of the cash and money market funds that we hold on our platform (as at February 2024). We’ve listed the Accumulation funds below, but note we also have Income versions for many of these funds. View our Investment Finder for the latest funds.

  1. abrdn Sterling Money Market Fund
  2. BlackRock Cash Fund
  3. Fidelity Cash Fund
  4. Invesco Money Fund UK
  5. Legal & General Cash Trust
  6. Royal London Short Term Fixed Income
  7. Royal London Short Term Fixed Income Enhanced
  8. Royal London Short Term Money Market Fund
  9. WS Canlife Sterling Liquidity Fund

Why are investors buying money market funds?

Thanks to higher-for-longer interest rates, money market funds - or cash funds - have been popular throughout 2023 and remain so in 2024. Becks Nunn explains why they’re among the top-selling ISA and SIPP funds for customers in this 3-minute read.

Read about money market funds