The ‘sleep at night’ investment funds
For investors who prefer less of a bumpy ride
Richard Evans
Fidelity International
30 April 2025
Make your cash work harder
Cash and cash-like funds
Important information: The value of investments can go down as well as up so you may get back less than you invest. Tax treatment depends on individual circumstances and all tax rules may change in the future. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity's advisers or an authorised financial adviser of your choice.
Three easy-to-access routes
When interest rates are high, the market becomes swamped with headline-grabbing high-interest accounts. Here are three ways to hold your cash at Fidelity - so you can put it to good use when you need it.
Cash available to invest
Cash held in your account is available to invest immediately. It makes use of your tax-efficient allowances if held in an ISA or SIPP. It also earns interest (with no service fees attached).
Cash Management Account
We take your fees from cash in here, before selling investments. Your money earns interest but won’t go towards your tax-efficient allowances unless you move it to an ISA or SIPP.
Cash funds
Cash and money market funds offer a relatively lower risk investment route to cash-like investing (although there are no guarantees). If held in an ISA or SIPP, any returns are tax free.
What's cash good for?
Acts as an emergency fund - it's good to have at least three months' living expenses should you need it to cover you for any emergencies.
Allows you to take advantage of opportunities - it's good to keep some cash to move money into investments quickly to benefit from market upturns or seize new opportunities.
Stops you from being forced to sell - it's good to keep some spare cash so you're not forced to sell your investments and lock in any losses if markets fall.
Plays a role in a diversified portfolio - asset classes (such as cash, bonds and equities) act differently in different economic conditions. Investors can try to reduce some of the effects of volatility to their portfolio by investing across different sectors and market areas. This doesn't necessarily mean higher growth potential but it can help to deliver a steadier return.
If you want to make the most of your money, our financial advisers can help. So, if you're someone who needs help with investing or has complex finances to juggle, they'll help you make better sense of it all - freeing you up to enjoy life, with one less thing to think about. This is a paid-for service.
Whether you're new to investing, or have been doing it for a while, our five investing principles will help you make smarter investing decisions. From why it pays to stay invested, to managing risk and how to make your pension last.... we take five core principles and show the positive effect they can have on your investments in real terms, although gains aren't guaranteed.
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