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Cash

When we talk about cash, we don’t mean money under the mattress.  We class cash as any type of fixed interest investment that has a very short repayment period.  It includes bank bills and short-term bank deposits with repayment dates typically ranging from a day to 12 months.

Cash carries the lowest level of risk of short-term loss but usually earns a lower rate of return over the long term.  Over the long term, after-tax returns from cash may not keep up with inflation.