UK money market funds attract investors amid higher interest rates

Since 2022, UK money market funds have experienced a 43% growth in assets under management, driven by rising interest rates. These funds invest in high-quality, short-term debt instruments, providing liquidity and stability, making them appealing for investors seeking short-term cash management solutions. Notably, the average UK money market fund currently yields 4.95%, surpassing the 4.40% yield on 10-year UK gilts. Additionally, money market yields adjust more slowly to interest rate changes compared to savings accounts, allowing investors to benefit from higher returns for longer periods...