Money market funds have become a popular choice in South Africa for savers seeking stability and quick access to their cash. While they don’t promise the high returns of equities, they stand out in times of market turbulence for offering security and liquidity.

These funds operate as collective investment schemes, pooling money from investors and placing it in short-term instruments such as bank deposits or bonds. In exchange, investors receive regular interest payments along with the flexibility to withdraw on short notice. This has made money market funds a trusted holding place for surplus cash or reserves.

Compared with ordinary savings accounts, they often deliver slightly better returns, though they cannot match the potential growth of equities or property over the long run. Their key attraction lies in capital preservation. Under normal circumstances, investors can expect their initial amount to remain intact. For this reason, money market funds are well suited for emergency reserves, short-term goals, or as a temporary stop while investors weigh longer-term opportunities.

They are not, however, designed for wealth building. Inflation can erode gains over time, making them less suitable as a growth vehicle. Yet for those wary of risk or looking for a steady refuge when markets turn uncertain, money market funds offer a rare combination of safety, accessibility, and reassurance, qualities that carry real weight in an unpredictable economy.