If you are looking to invest your money in a relatively secure fund you should take a look at ten of the best money market funds in South Africa. And consider investing in one of them. There are of course many other ways to invest your money and make a profit. But investing in a money market fund is one of the best ways to get a return on your money.

In no particular order the following ten money market funds are some of the best in South Africa:

1. Allan Gray Money Market Fund
2. RE:CM Money Market Fund
3. Nedgroup Investments
4. Coronation Money Market Fund
5. Standard Bank Money Market Fund
6. Old Mutual Money Market Fund
7. Community Growth
8. PSG Money Market Fund
9. Prudential Money Market Fund
10. RMB Money Market Fund

You must always ensure that you properly understand any investment that you make before you take the plunge.

What is a money market fund?

A money market fund is an open ended mutual fund that is invested in short term securities. They pay out dividends to the investor.

No more than five percent of a fund should be invested in one particular issuer, except of course government securities.

Market funds aim to maintain a stable value for each share. Making the risk a bit lower than with other types of funds and investments.

However although many people believe that money market funds are risk free, this is not the case. As with most funds and investments there is some risk involved for the investor.

Money market funds provide much needed liquidity to financial intermediaries.

Therefore these funds essentially loan investors’ money to companies or to governments for a period of up to one year. Money market funds offer higher rates as well as higher balances than most savings accounts.

Making them a good place for short term savings as well as storage for emergency funds or assets.

Criteria in South Africa

One of the criteria of a good money market fund is that the fund size must be one billion rand or more.

Another criteria is that less than 25 percent must be invested in corporate debt. The better funds will steer clear of low rated and poor quality securities. Lowering the risk of a default.

It is also important to find a company with the lowest possible initial fee and yearly fee.

Other Market Funds in SA

There are, of course, many other great money market funds in South Africa and as the statuses of most money market funds do change. You should check on each fund before making your decision.

It is also important to always try to go with a financial company that is reputable and trustworthy. And that has a large base of happy customers.

You will want to work with a financial manager or advisor who can get you a high return on your money for the lowest possible cost. If you invest in a money market fund that has a higher minimum investment rate, you have a better chance of getting a higher return.

The second highest money market rating is the F1 rating. So you should definitely try to go for a company that will not invest any lower than this rating.

In Conclusion of the Best Money Market Funds

Going for a company that invests in high quality, short term investments rather than poor quality, lower rated securities is always better.

Whatever option you choose, make sure you consider all the pros and cons of each money market fund.

In addition get advice from a financial professional. So that you know you are putting your money in the very best possible fund.

If you are looking to invest your money wisely, knowing all options, including the investment solutions online, will help you make the best choice for your returns.

Once you are earning enough money to put some away as savings, you should begin to consider investing a portion of it. Making a good investment will ensure that your money will grow and you will be better off in the future.

Would you like a nest egg to pay a deposit on a home in the next few years? Have you always fancied a speedboat? Do you want to put aside something for your children’s education or give them a great life start with a trust fund? A good investment, over time, can make your life much easier and even allow you a little extra luxury.

 

How to keep up to date

When you invest (for example in a unit trust or something similar) it is important that you keep up to date with the details of your investment and how it is growing, as well as with the market and economics in general. You need to know what options you have for change and even further growth and what moves you can make to better your investment.

 

• Do it yourself

Unless you are an amateur investment enthusiast it can prove time consuming and difficult to keep up to date on everything that is going on, what your options are and what the best route to take is. Even after years of experience with investments, without expert help you could easily make a wrong decision.

 

• Speak to an expert

Contacting an investment expert is a good idea as he or she will investigate your specific situation and give you good advice. It is personal and reassuring to know that a training professional is helping you with your investments, but it might make you uncomfortable to give so much control over your money to a stranger. Also, in today’s busy world most people have full time jobs and families to keep them busy, finding the time to meet with an investment specialist every few weeks could prove tedious.

 

• Look online

Looking at investment solutions online is arguably the best solution. If you are computer savvy and interested to learn about the investment world while staying safely within the guidance of professionals, finding a web site that offers investment solutions, advice and investment news could help you control your own investments wisely.

 

What are the benefits of looking online?

There are many benefits to taking the online route and the best way forward, if you are interested is to find a reliable web site belonging to a reliable firm and look around.

1. Many web sites will offer insight into the investment world and updates about the state of the market and economics in South Africa and the world.
2. There will often be a comparison tool on the web site allowing you to line up different investments and compare aspects of them to choose the right one for you. Aspects for comparison include risks, fees and features.
3. Some sites also offer news relating to the investment world to keep you up to date with the market.
4. Using the internet is quicker, easier and more efficient than making appointments and seeing people face to face. You can explore online investment solutions at any time of the day or night and still manage your job and family.

What to remember when looking online

In searching for a web site that suits you, remember the following:

• Go for a web site belonging to a reputable company and always research their reliability before using them. It might be worthwhile to ask experts over the phone before choosing.
• Make sure that their investment solutions systems comply to the relevant regulations and standards.
• Choose a company that understands the ever changing nature of the economic world. It is important that they are willing to adapt and adjust when necessary.