Cash

Description

Bank deposits, cash management trusts and money market investments that can be converted to cash very quickly.

How it makes a return

Cash investments receive interest.

What affects the investment value?

The policies set by the Reserve Bank of Australia, inflation and currency changes affect the value of cash.

Risk and return characteristics

Risk/Return level = Low

Cash is one of the most secure investments. It usually has a lower rate of return than other investments over the long term. Cash does not fluctuate in value as much as other investments but it tends to increase in value more slowly.