Rate cuts spark search for yield
But care needs to be taken in choosing where to put your money-market cash
South Africans have about R420bn — or 20% of all the money invested in unit trust funds — in money-market funds.
Recent interest rate cuts have, however, taken money-market yields down to between 3.8% and 4.9% this week — not far above the 3.2% inflation rate for July. Investors who have used their interest exemptions also need to pay tax on this interest...