Managed Cash Fund

[merlinnn]

Hi Everyone,

Just this evening whilst researching various investment option for my SMSF I came across various managed funds for Australian Cash, term deposits etc. Question is based on the fact that all of these have obviously returned under 5% the last few years, and most of them charge a MER fee, why would anyone invest in them? Am I missing something?

 

[Bill M]

Hi Everyone,

Question is based on the fact that all of these have obviously returned under 5% the last few years, and most of them charge a MER fee, why would anyone invest in them? Am I missing something?

I have looked at many of these too and I don't think you are missing anything. For a cash product I wouldn't go near those funds. I just opened up an ING Living Super account and I can secure a Government Guaranteed 2 year term deposit with them and get 5.1% interest with no fees at all. Pretty hard to beat so not much point going for anything less, good luck.

Link to product:https://www.ingdirect.com.au/interestrates.htm#H3