Money Takes Refuge in Short-Term Funds

©image: Wikimedia Commons

The fear caused by the financial crisis has prompted investors to abandon growth and income investment funds which typically offer better returns and put their money in highly liquid, low return funds, where the money can be withdrawn in less than 24 hours.

According to the article by Esteban Ramírez Castro, published in elfinancierocr.com, this has caused low levels of performance similar to that obtained with bank certificates: "Money market funds in colones remained close to 7% for the last 30 days, two points down from the inflation projected for 2009. As a reference, overnight certificates from the Central Bank with a one-day term are paying 7.75% and even 30-day rates can go as high as 9%."

Source: elfinancierocr.com

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