A money market unit trust is an easy way for individual investors to
benefit from interest rates which are usually only paid to big lenders.
Money market unit trusts pool your money with that of other investors and
lend it to institutions which want to borrow money for short periods, up to
three months.
If you invest in a money market fund, you are looking for capital
preservation - the value of your capital will not drop - and interest on
your money.
The price of units - usually about R1 - does not vary. But the yield, or
percentage return, you are paid varies with movements in interest rates on
the market.
Money market funds can be used as a "parking place" for money while you
consider other options, or as a refuge when the share market looks tricky.
In France, there are more than 1 300 money market funds.
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