Could cash really be a better investment than equities?
28 August 2018
With the benefit of hindsight, investing in SA cash over the past year (or even three) looks like a relatively sensible decision. At least, that’s the retort many investment professionals are currently facing as they sit in front of their clients. According to MorningStar (a data provider), the average SA balanced fund (which can invest in cash, but typically holds up to 75% in equities) has returned a negative 0.7% per annum after inflation over the past three years, compared to SA cash that has delivered a positive +1.6% per annum real return.