Saturday, 30 January 2010

Cash - low risk

Cash is one investment from which you can never hope to make a fortune, althoug it can safeguard you against losing one.

Cash investments, including bank deposits and money market accounts,
  • offer you the assurance of a regular interest income and
  • knowing your capital will not be subjected to huge external fluctuations.

But cash also carries risk.  There is no guarantee that your capital sum will be protected against inflation, as this investment does not have any inherent growth potential.

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