In the world of investing, Exchange-Traded Funds (ETFs) have gained immense popularity as a versatile and accessible investment vehicle. ETFs provide investors with a diverse portfolio of securities, similar to mutual funds, but with the added advantage of being traded on stock exchanges throughout the trading day. In this comprehensive guide, we will explore what ETFs are, how they work, their benefits, risks, and provide step-by-step guidance on how to invest in ETFs.
Understanding Exchange-Traded Funds (ETFs)
Exchange-Traded Funds (ETFs) are investment funds that trade on stock exchanges, similar to individual stocks. ETFs are designed to track the performance of a specific index, sector, commodity, or asset class. Instead of owning individual stocks or bonds, investors own shares in the ETF, which represents a proportional interest in the underlying basket of assets.
Types of Exchange-Traded Funds
ETFs come in various types, each serving different investment objectives:
– Index ETFs: These ETFs aim to replicate the performance of a specific index, such as the S&P 500 or the Nasdaq 100.
– Sector ETFs: Sector-specific ETFs concentrate investments in specific industries like technology, healthcare, or energy.
– Bond ETFs: Bond ETFs provide exposure to a diversified portfolio of bonds, including government, corporate, or municipal bonds.
– Commodity ETFs: These ETFs track the performance of commodities like gold, oil, or agriculture products.
– International ETFs: International ETFs offer exposure to specific countries or regions, allowing investors to diversify their portfolios globally.
Advantages of Investing in ETFs
Exchange-Traded Funds (ETFs) offer several benefits that have contributed to their popularity among investors:
– Diversification: ETFs provide instant diversification by holding a basket of securities, reducing the risk associated with individual stocks.
– Liquidity: As ETFs trade on stock exchanges, they offer intraday liquidity, allowing investors to buy or sell shares at any time during market hours.
– Cost Efficiency: ETFs typically have lower expense ratios compared to mutual funds, making them a cost-effective investment option.
– Transparency: The underlying holdings of ETFs are disclosed daily, enabling investors to have a clear view of what they own.
– Flexibility: ETFs can be bought or sold throughout the trading day at market prices, offering flexibility and control over investment decisions.
– Tax Efficiency: Due to the unique creation and redemption process, ETFs are generally more tax-efficient than mutual funds, potentially minimizing capital gains taxes.
Risks Associated with Investing in Exchange-Traded Funds (ETFs)
While Exchange-Traded Funds (ETFs) have numerous advantages, it’s essential to be aware of the potential risks involved:
– Market Risk: ETFs are subject to market volatility and can experience fluctuations in value based on the performance of the underlying assets.
– Tracking Error: Some ETFs may not precisely replicate the performance of their underlying index, resulting in a tracking error.
– Liquidity Risk: Although ETFs are generally liquid, certain niche or less-traded ETFs may have lower liquidity, potentially leading to wider bid-ask spreads.
– Sector Concentration Risk: Sector-specific ETFs may be exposed to the risks associated with a particular industry, making them more vulnerable to economic or regulatory changes in that sector.
How to Invest in ETFs: A Step-by-Step Guide
Investing in ETFs is a straightforward process. Follow these steps to get started:
– Step 1: Determine Your Investment Objective: Define your investment goals, risk tolerance, and time horizon to select the most suitable ETFs for your portfolio.
– Step 2: Research
Different ETFs: Conduct thorough research to understand the types of ETFs available, their underlying assets, expense ratios, historical performance, and any specific investment strategies or objectives.
– Step 3: Select an Online Brokerage Account: Choose a reputable online brokerage that offers access to a wide range of ETFs and provides competitive trading fees and account services.
– Step 4: Open and Fund Your Account: Follow the instructions provided by the brokerage to open an investment account. Deposit funds into the account to have capital available for investing.
– Step 5: Choose Specific ETFs: Based on your research, select the ETFs that align with your investment goals and strategies. Consider factors such as diversification, expense ratios, and historical performance.
– Step 6: Place an Order: Log in to your brokerage account, navigate to the trading platform, and enter the ticker symbol of the ETF you want to purchase. Specify the number of shares or the dollar amount you wish to invest.
– Step 7: Review and Confirm: Double-check the details of your order, including the price, quantity, and any applicable fees. Once satisfied, confirm the purchase.
– Step 8: Monitor and Manage Your Investments: Regularly review the performance of your ETF investments and make adjustments if necessary. Stay informed about any changes in the underlying assets or market conditions that may impact your investments.
Conclusion
Exchange-Traded Funds (ETFs) have revolutionized the investment landscape, offering individuals the opportunity to access diversified portfolios, enjoy liquidity, and benefit from cost-effective investment vehicles. As an investor, understanding the fundamentals of ETFs, including their types, advantages, and risks, is crucial for making informed investment decisions.
By following the step-by-step guide outlined in this comprehensive article, individuals can confidently navigate the process of investing in exchange-traded funds (ETFs). However, it’s essential to conduct thorough research, evaluate one’s investment objectives, and seek advice from financial professionals when necessary.
ETFs provide a flexible and accessible way to diversify investments, build a balanced portfolio, and achieve long-term financial goals. With careful consideration and informed decision-making, investors can harness the potential benefits of ETFs and participate in the ever-evolving world of investment opportunities.
Binance CEO Changpeng Zhao believes that the next bull run will begin in 2025
His claims come at a time when Bitcoin price hit its highest point in 2023
Binance CEO Changpeng Zhao delivered his forecast for the market performance during a Twitter Space on July 5, explaining that the next crypto bull run will be seen in 2025.
Crypto’s 4-year cycles to repeat itself: Binance CEO Changpeng Zhao
Historical bitcoin bull run trigger, halving cycle is not in line with the global financial markets outlook this time. It is set to be carried out 296 days from now. However, the global financial outlook could be more friendly as most countries are dealing with rising living costs.
“The year after Bitcoin halving is usually the bull year.“ he said
However, the next halving happens in 2024, meaning the markets would rise from then, climaxing in 2025 if all other factors remain constant. Remember that nothing is promised, and the market prospects could change. Keep watching Fintech Express for more updates on this and other fintech-related developments.
Bitcoin has set a new high in 2023 after breaching the $31,450 mark
The bitcoin price is rallying as the market moves closer to the 2024 bitcoin halving cycle
Bitcoin price rallied to the highest point on July 6, 2023, as the market approaches the eagerly awaited Bitcoin halving period in 2024. It has been noticed that as Bitcoin gains more security from the halving periods, more market buy pressure is seen, which increases the price.
All eyes on the Bitcoin price as buy momentum builds
Bitcoin halving increases the network’s security by raising the hashing rate, which cuts mining rewards by half. It’s a cycle that happens every four years in the Bitcoin community and is always seen as bullish.
Bitcoin price has been rising in tandem with the occurrence of halving sessions. A mild bull run begins every year before a halving occurs, with it becoming stronger post the halving session. On July 6, 2023, Bitcoin price rose to a record high for the year as the days left to the next halving dropped below 300 to 296.
This momentum is expected to sustain or increase slightly over the remaining months of the year as long as other factors like regulation and macro-finance stay stable. However, there are no promises on whether the market will repeat history or create a divergent course. Therefore it’s advisable to keep researching and learning more about the market to make more informed and riskless decisions.
In the realm of investments, money market funds provide a safe and stable option for individuals and institutions seeking low-risk and short-term investment opportunities. Money market funds are a type of mutual fund that invests in short-term debt securities, aiming to preserve capital while providing modest returns. In this article, we will delve into the world of money market funds, exploring their purpose, features, benefits, risks, and how they fit into an investment portfolio.
Understanding Money Market Funds
Money market funds are investment vehicles that pool money from various investors and allocate it primarily to short-term, high-quality debt instruments such as Treasury bills, commercial paper, certificates of deposit (CDs), and repurchase agreements. These funds strive to maintain a stable net asset value (NAV) of $1 per share, making them an attractive choice for individuals seeking stability and liquidity.
Objectives and Features of Money Market Funds
The primary objective of money market funds is to provide investors with a safe place to park their cash while earning a competitive yield. Key features of money market funds include:
Liquidity: Money market funds allow investors to quickly and easily convert their shares into cash, typically offering daily liquidity.
Low Volatility: Due to their short-term nature and high-quality holdings, money market funds aim to minimize price fluctuations and provide a stable investment option.
Diversification: Money market funds spread investments across multiple issuers and securities, reducing the impact of individual defaults.
Benefits of Money Market Funds
Money market funds offer several advantages to investors, including:
Preservation of Capital: Money market funds focus on capital preservation, making them suitable for individuals with a low tolerance for risk.
Stability: The stable NAV of money market funds ensures that investors’ principal remains intact, allowing for greater peace of mind.
Competitive Yields: While money market funds are not designed to generate high returns, they typically offer higher yields than traditional savings accounts or checking accounts.
Convenience: Investors can access their funds easily, usually through check writing, electronic transfers, or redemption directly to their bank accounts.
Risks Associated with Money Market Funds
While money market funds are generally considered safe investments, it’s important to understand the potential risks involved, including:
Credit Risk: Although money market funds invest in high-quality debt securities, there is still a small possibility of default by the issuers.
Interest Rate Risk: Fluctuations in interest rates can impact the yield and returns of money market funds. When interest rates rise, yields on new investments increase, potentially leading to lower returns for existing investments.
Liquidity Risk: In times of market stress, there may be a lack of buyers for certain securities held by money market funds, which can affect their ability to maintain liquidity.
Incorporating Money Market Funds into an Investment Portfolio
Money market funds can play a vital role in an investment portfolio, serving as a cash management tool or providing a temporary parking spot for funds. Here are some considerations:
Emergency Funds: Money market funds offer a secure and easily accessible place to hold emergency funds, providing stability and liquidity when needed.
Short-Term Goals: For individuals saving for short-term goals, such as a down payment on a house or a vacation, money market funds can be a suitable option, providing a balance between the preservation of capital and earning modest returns.
Portfolio Stabilization: Money market funds can act as a stabilizing force in a portfolio, helping to mitigate the volatility of riskier investments such as stocks or bonds.
Conclusion
Money market funds offer a low-risk investment option with a focus on capital preservation and liquidity. They can be used for short-term investment in times of highly volatile or investor-unfriendly markets. However, they also have their limitations. Do your own research and figure out how to maximise your profitability and keep risks down. Keep watching Fintech Express for more comprehensive guides like this one.
In today’s interconnected world, social media platforms play a significant role in keeping us connected with our friends and loved ones. Instagram, one of the leading social media platforms, has introduced a new app called Threads. Threads is designed to offer a more private and intimate space for sharing moments with your close friends. In this article, we will provide you with a step-by-step guide on how to download and use Threads to enhance your Instagram experience.
Step 1: Downloading Threads
To get started with Threads, follow these steps:
1. Open the App Store (for iOS devices) or the Google Play Store (for Android devices) on your smartphone.
2. In the search bar, type “Threads from Instagram” and tap the search icon.
3. Locate the Threads app and tap on it.
4. Tap the “Install” button (for Android) or the “Get” button (for iOS) to download and install the app on your device.
Step 2: Logging In
Once you have successfully downloaded Threads, you need to log in using your Instagram account. Follow these steps:
1. Open the the app on your device.
2. Tap the “Get Started” button.
3. You will be prompted to log in using your Instagram account. Enter your Instagram username and password.
4. Tap the “Log in” button.
Step 3: Setting Up
After logging in, you can set up Threads according to your preferences:
1. Choose how you want the app to access your camera and microphone. You can allow access for photo and video capturing or select “Don’t Allow” if you prefer to use existing media files.
2. Grant or deny notifications based on your preference.
3. Customize your app settings such as dark mode, data usage, and more.
Step 4: Creating a Close Friends List
Meta’s new app focuses on sharing with your close friends on Instagram. To create your close friends’ list:
1. Tap on the “Create a Close Friends List” button.
2. You will see a list of your Instagram followers. Tap on the “+” icon next to the names of friends you want to add to your close friends’ list.
3. Once you have selected all your close friends, tap on the “Done” button.
Step 5: Navigating Threads
Meta’s new app offers a simple and intuitive interface. Here’s a brief overview of the key features:
1. Home button Tap the home icon to get an interface where other users’ posts are shown.
2. Search bar: The search icon leads to a page with a search bar and suggested accounts to follow. The search bar can give you results based on user accounts that are most likely to post it just like Instagram.
3. Threads button: Threads button allows you to write new content to post on the platform.
4. Likes: The likes icon leads you to a page that allows you to see what users have replied to you, mentioned and all interactions with verified user accounts.
5. Profile/ Settings: This icon leads you to a page where you can customize your settings and profile how you want. However, alot of the features on the profile are based on Instagram thus you would have to edit them via Instagram.
Keep watching Fintech Express for more guides like this one.
Twitter has received licenses to operate as a money transmitter in Michigan, Missouri, and New Hampshire.
The advancement is the first step for XCorp to become a global financial services provider.
Twitter has secured licenses to operate as a money transmitter in Missouri, New Hampshire, and Michigan, setting the stone rolling for its dream of becoming a financial service provider. Elon Musk disclosed this plan when taking over the social media giant last year to set it apart from the growing competition.
Twitter’s dream to be a financial services provider lives on
The objective of Elon Musk’s blue bird to become a financial services provider lives on as the company secured three US states money transmitter licenses. The company now only has to secure 47 more licenses to cover the US.
NEWS: Twitter has finally secured its first money transmitter licenses in several US states. pic.twitter.com/gziiRgelYU
— T(w)itter Daily News (@TitterDaily) July 5, 2023
This development comes as a win for Elon Musk as more competition grows among text-based social media companies’ niches. Yesterday, Mark Zuckerberg Meta launched Threads, a text-based social media app powered by Instagram and is a direct competitor to Twitter. Donald Trump also launched Truth Social, a text-based social media company, after getting banned on almost all social media platforms before Elon Musk’s Twitter takeover.
As such, Twitter has been in a tight spot to revitalize its activities and become more profitable. It is now turning to financial services provision to improve its business outreach. The newly acquired money transmitter license allows a company to provide transfer services or payment instruments in the area of jurisdiction. It, however, differs from the license to conduct sales services in that it’s there to ensure customer protection for businesses that transmit money from one party to another.
The company also intends to open up its financial services to cryptocurrency services. However, crude information has yet to be offered on how this will be achieved or the capacity the company will serve its users with. It has also been rumored that the company is set to launch its Twitter coin cryptocurrency.
However, all these remain to be seen after the company confirms how Twitter Pay will function. Keep watching Fintech Express for more updates on this and other fintech-related developments.
Crypto hacking spree continues as developers lack proper solutions to track looters as $300 M is stolen in Q2 2023
Year-over-year losses to crypto hacks have dropped by 58%
Crypto hacks have persisted into 2023 though a noticeable drop of 58% YoY has occurred. A report by Certik, however, shows that $300 million was stolen from the industry in Q2 2023.
Crypto hacks are reducing, but it’s not time to celebrate yet
Th report by Certik shows that between April and July 2023, a total of $100 million was being siphoned out of the crypto industry by hackers each month. The whole amount was siphoned in 212 security breach occasions.
Certik also noted that this time the amount stolen in the year is much lower than 2022’s $745 million in the same period, a 58% decline. However, this drop in total losses came with new developments. The amount lost in scams rose to around $70 million in the period, a more than 50% increase from Q1 2023, which recorded a loss of $31 million.
Certik also recorded an increasingly concerning rise in losses across BNB Chain ecosystems. BNB Chain had a rough 2022 after a bridge was hacked, almost losing half a billion dollars. The new report shows that it recorded the largest incidents with 119 ($70.7 million), while Ethereum came second with 55 incidents ($65 million).
Keep watching Fintech Express for more updates on crypto and other fintech-related developments.
DFSA has asked Saxo Bank to liquidate its crypto holdings citing risky investment
The process is expected to have a “very limited impact” on the bank’s functionality.
Denmark has asked one of its largest banks, Saxo Bank, to erase its cryptocurrency holdings as a de-risking effort. It expects the bank not to be impacted in any way while closing its crypto market positions.
No more crypto investments Saxo Bank: Denmark
The developments come at a time when regulators in Denmark seek to go after crypto services providers citing investment risks. It has declared that all local banks cannot hold any crypto assets to hedge against trading risks.
The Danish Financial Supervisory Authority (DFSA) announced on July 4 orders for Saxo Bank to dispose of its crypto holdings under claims that such assets lie outside the legal business of financial institutions in Denmark per section 24 of Denmark’s Financial Business Act.
DFSA explained that Saxo Bank has exposed itself and its customers to trading risks by bridging them to the crypto markets. It also said that apart from direct crypto assets, exchange-traded funds and exchange-traded notes tied to crypto assets should be included in the disposal list as it is possible to speculate on the crypto market.
The regulator also cited Annex 1 of the Financial Business Act, saying that financial institutions should not publicly trade crypto assets in the country. An excerpt from the announcement reads:
“Based on the above, Saxo Bank’s trading in crypto assets for its account is outside the legal business area of financial institutions. On this basis, Saxo Bank is ordered to dispose of its holdings of crypto assets.”
The regulator also mentioned the preparedness of Denmark to onboard European Union’s Markets in Crypto Assets (MiCA) legislation saying that they will hit the set dates to effect it in 2024. MiCA is expected to be enforced in all EU member states starting December 2024 after the bloc’s parliament passed it in June. However, more steps will be required between now and its enforced date.
So keep watching Fintech Express for more updates on this and other fintech-related developments.
A sticky situation persists in the crypto ecosystem as regulators pledge to ‘spring clean’ the entire industry. What started as a juvenile attack on crypto is now almost a full-blown annihilation of an industry whose promise at genesis was financial freedom. The beacon of hope for the unbanked is now subject to the unrelenting matching of regulators towards its end.
Born with a great ambition of mimicking and surpassing traditional finance, crypto continues to suffer life-ending attacks from regulators. Is there any end to the onslaught? You tell me!
Exchange exodus from Canada
The genesis of regulatory uncertainty birthed the exodus of crypto exchanges from Canada. The latest in the frenzy of exits is Binance which announced a Canadian market exit in mid-May. The reason per se, Binance says, is the harsh regulatory climate and watchdogs’ tendency to establish unclear crypto legislation.
Unfortunately, today we are announcing that Binance will be joining other prominent crypto businesses in proactively withdrawing from the Canadian marketplace.
We would like to thank those regulators who worked with us collaboratively to address the needs of Canadian users.…
Binance had cold sweat over regulations around investor limits and stablecoins. The exchange battled with Canadian regulators regarding the new rules— but all efforts proved futile.
The mass exodus of exchanges in Canada was triggered by the rules Binance criticizes in its tweet.
Earlier this year, on Feb 24, Canadian regulators announced a new framework hinting that all exchanges are bound to register with regulators. Also, exchanges must adhere to new stablecoin rules and investor limits.
At the outset, stakeholders expressed disapproval of the new framework. Paxos exchange led the match to exit Canada. What ensued was a period of uncertainty as more exchanges, including OKX and dYdX, followed; the problem of regulatory uncertainty.
Just do a Binance Canada like you already did for Binance US.
4
— Etherean Maximus ⚔️ (@EthereanMaximus) May 12, 2023
Regardless of the ugly departure, Binance maintains that a comeback is possible in case a new regulatory regime comes into place.
Can’t Binance launch a Binance Canada arm akin to Binance US? Well, the question has recurred a couple of times now. Some argue that the Canadian market is too miniature to trigger such a move.
Even as Binance left, the vacancy in the Canadian market was promptly filled with exchanges like Kraken, Coinbase and Crypto.com.
SEC’s ridiculous crypto onslaught
Citing harsh regulations without calling attention to the disease that is SEC against crypto is shoddy work. The watchdog’s pivotal role in steering hostility toward crypto cannot be overlooked.
The regulator’s head, Gary Gensler, is painted (written) as a major villain in the crypto story. Despite already taking the rogue tag last year, it looks like the ombudsman upped his game in 2023.
With the absolute intent of intensifying the misery on crypto, Gary Gensler’s SEC labelled about 68 cryptocurrencies securities. Such include BUSD, ADA, BNB, SOL, MATIC, ATOM, SAND, MANA, Filecoin, etc.
In a recent startling revelation, Filecoin was surprisingly tagged as a security by the SEC. The watchdog was responding to Grayscale’s share registration.
This won’t work with filecoin or chains that release their own token, but what may come next is for tokens is to release them all, leaving no treasury, take the receipts and use them to provide liquidity using defi for trains the token , and then dissolve the original entity…
At the dawn of the year, the watchdog ambushed Kraken, alleging that the exchange illegally issued staking and custodial services. The settlement agreed upon was $30 million.
Berenberg said in a research report that the US SEC will soon bring enforcement action against Coinbase like Bittrex and Kraken. It expects the SEC to sue soon, targeting someting like staking and USDC interest income. https://t.co/njWmvLoGlk
As a consequence of regulatory ambiguity, several top exchange networks contemplated departing the American market. Bittrex is one such exchange whose American exit was steered by impune regulations. Others like Coinbase and Binance have had similar plans.
A bigger war brewing: Coinbase vs SEC
A big war is brewing between the SEC and Coinbase after the former sued the latter for illegal operations. Part of the SEC’s claims includes Coinbase dealing with crypto assets the federal regulator considers security.
Coinbase’s response was not at all shocking. The exchange, through its head Brian Armstrong declared plans to exit the US.
The showdown between Coinbase and SEC has been going on for months. In March, Coinbase came out guns blazing with accusations that the SEC chose to intimidate instead of creating favourable rules.
The initiation of probes on Coinbases major services like earn, prime and wallet was seen as a final blow to an exchange that has been thriving in the US for years.
On the brighter side, this inbred warfare drew the attention of the US Chamber of Commerce. US commerce chambers believe that the attacks are harmful to innovation.
CBDC Tale; A Freedom driver or Regulators’ instrument?
In writing is a new tale, CBDC, born with the promise of financial inclusion. The ideology of Central Bank Digital Currency stems from decades ago in Finland. However, the evolution of financial technologies revived the development of CDBD by leveraging blockchain.
Despite promising inclusivity, the cost of this new development would be financial freedom. UK, US, and Nigerian citizens have been unforgiving as the three countries begin implementing CBDC. Several countries have anti-CBDC demonstrations.
Florida’s governor, Ron DeSantis, invested much of his political goodwill to fight CBDC promotion in the US. In another uprising, residents of the UK took to the streets to complain about CBDCs. Most residents noted that the tech is implemented to control people’s finances.
🇨🇳 China is able to put an expiration date on its digital yuan, forcing people to spend and not allowing them to save.
The worst is China’s CBDC which allegedly discourages people from saving. In general, two tales a being told, one of inclusivity and the other of rejection.
ISO20022: The Dawn of crypto inclusivity?
As turmoil and uncertainty continue to be reported, a new concept was recently born to standardize high-value payments. ISO20022 is already being used in over 70 countries.
ISO 20022 is fashioned as a system that supports secure payment data. In simple terms, this system offers a flexible standard for financial messages, creating interoperability of financial institutions, key infrastructure and customers.
The banks must accept this standard for the institutions to continue making payment processing services. This new standard affords better-structured transaction data, especially for payment messages.
This system offers compatibility with some crypto blockchains, including Ripple, Hedera, Quant, Stellar, IOTA, Algorand, Cardano and XDC network. Most compatible blockchains, including Ripple and Stellar, are only compatible because of their strong interest in banking technologies.
Will the compatibility of blockchains with ISO 20022 help foster regulatory inclusivity for crypto? Well, it is possible. However, it all comes at a cost. The price is freedom. ISO20022 is designed to give more oversight over digital transfers to banks, a functionality that has been seen to be too good after all. Ask ECB’s Christine Lagarde whether their policies led to inflation, and she will say no, inflation came from nowhere.
Keep watching Fintech Express for more updates on regulation and other fintech-related developments.
British investors pulled a record 503 million pounds from equity funds in June
The money was directed to money market funds.
Reports from Calastone show that the investors now prefer Money market funds, a place of relative safety and yield, as the U.K. economy
Investors in the U.K. have flocked into money market funds, according to a June report from Calastone, in the second-highest move of its kind in the country’s history. The move comes when the U.K. economy is in distress due to the rising inflation rate dragging costs of living up with it.
The U.K. Investors pull $842 million from equity funds in favor of money market funds
Figures from Calastone show that U.K. investors are walking away from Equity funds, with body funds raising the highest numbers, 880 million pounds of new money in June. Another record 503 million pounds went into money market funds.
The money that went into these markets was heavily transferred from other asset types like equity, missed assets, and property funds. The June report indicates that investors lean heavily toward fixed-income and money markets as the global economy endures high inflation rates.
The report also indicated that “strong outflows” were seen in the U.K., North America, and ESG funds in equity sectors. The firm also noted that Technology funds benefitted from the A.I. hype.
June’s figures are but a representation of the global migration of assets from Equity funds over the past 12 months. In the time frame, investors pulled 3.6 billion pounds from equity funds while pumping 7.9 billion pounds into fixed income.
Edward Glyn, head of global markets at Calastone, noted: “Fixed-income funds and their money market cousins have not looked so attractive since before the global financial crisis. At the same time, recession fears are stalking equity and property markets – investors are nervous. The result is a flight to safety.”
He added that money market funds currently offer income at a rate of 5% or more in a relatively lower risk, with fixed income funds offering the chance to lock into the “highest yields in years.”
Keep watching Fintech Express for more updates on finance and other fintech-related developments.
