I have a large cash sum sitting in my GIA. What can I do so it remains liquid, steady with a good yield until I’m ready to make further investments in the next few months?
Treasuries? Around 4% money will be locked away for a month. Probably the most sleep well at night option.
Personally I have a cash layer in JEGP. Fairly low volatility around 7-9% monthly dividend. Has held up nicely…so far. Do your own research etc.
Cash Investments seem decent for uninvested cash.
You could look at money market funds.
In the ‘Discover’ tab, search for ‘Cash Investments’ and there are lots to select from.
For info (and not a recommendation, do your own research etc), I hold some UESD - iShares £ Ultrashort Bond Dist ETF, which pays a quarterly dividend, currently 5.26% yield
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The safest place for your money is a bank, where deposits are protected up to £85,000 per institution. In certain situations, like property sales, temporary full protection may apply, making it nearly risk-free.
For low-risk options, look at ETFs like CSH2, these invest in ultrashort-term, high-quality bonds. It aims preserve capital with minimal volatility but can lose value during sharp interest rate changes, defaults, or market stress. So, it’s low-risk, not risk-free.
Money market funds (MMFs) invest in short-term, high-quality debt like government bills and commercial paper. They offer stable value and liquidity, ideal for short-term parking. Although generally safe, they are not FSCS protected and can lose value during extreme events, though such occurrences are rare.
I’ve been adding Swiss domestic-oriented companies, like utilities and staples. The cantonal banks there are backstopped by the state with zero insolvency risk. You can get a 3-4% dividend yield which I think is attractive in a safe haven currency.
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