Cash is not king

Cash has two advantages that make it the asset of choice for funding short term needs, says Morningstar Investment Management. First, cash is a very secure investment. The risk of not getting your interest and your capital repaid is very low. The security for money held with UK authorised bank, building society or credit union comes from government deposit guarantees which are capped. The second advantage is liquidity. You can get your money back very quickly at no extra cost or penalty, by selling your fixed income security or simply withdrawing funds on deposit. But other assets are much...