Cash and Cash Equivalents asset class

Table of Contents

Cash and cash equivalents or money market instruments: https://www.investopedia.com/terms/c/cashequivalents.asp

  1. Cash and cash equivalents represent actual cash on hand and securities that are similar to cash.
  2. This type of investment is considered very low risk since there is little to no chance of losing your money.
  3. That peace of mind means the returns are also lower than other asset classes.
  4. Examples of cash and cash equivalents include cash parked in a savings account as well as U.S. government Treasury bills (T-bills), guaranteed investment certificates (GICs), and money market funds.
  5. Generally, the greater the risk of losing money, the greater the prospective return.

Tags

  1. Money

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