Money market funds, what's the point for a retail investor?

jamei305

The returns are lower than deposit accounts and negative after charges. Invesco Perpetual Money for example grew about 0.17% per year in the last three years with an annual charge of 0.50%

What are the reasons to invest in these funds?

AnotherJoe

Good question. Maybe if you are holding cash In a SIPP or ISA you might want to hold a different currency? , e.g. I might decide in my SIPP I'd like to hold some US dollars. There's a charge for doing that but it might be a risk I felt was worth taking expecting the pound to drop 10% this year (for example)

I can't see any point in a UK account holding a Sterling denominated fund, as you say it costs more than cash.

Other than that, no idea

masonic

If you can avoid investing in them, you should. As you say, much better places exist to hold cash.