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Money Market Fund
Comments
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Interesting rather than a concern: The risk associated with MM funds is very low although the BOE has said that there will be liquidity issues if large scale redemptions occur during times of stress. The US Fed has addressed this by imposing penalties of investors who encash at such times, I suppose the risk increases depending on how how long any crisis lasts: https://www.sec.gov/news/statement/gensler-statement-money-market-funds-071220230
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If you look at the price history for UK money market funds, you will find that there have sometimes been down spikes in times of stress. There have been occasions when you would have lost a percentage point or so if you had sold at the wrong time. That has been particularly true for CSH2.
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