- 19 June 2026
UK money market funds attract investors amid higher interest rates
- PROFESSIONAL INVESTORS
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- 11.03.25
Since 2022, UK money market funds have experienced a 43% growth in assets under management, driven by rising interest rates.
These funds invest in high-quality, short-term debt instruments, providing liquidity and stability, making them appealing for investors seeking short-term cash management solutions. Notably, the average UK money market fund currently yields 4.95%, surpassing the 4.40% yield on 10-year UK gilts. Additionally, money market yields adjust more slowly to interest rate changes compared to savings accounts, allowing investors to benefit from higher returns for longer periods when rates decline.
However, it's important to recognize that not all money market funds are identical; they vary in structure and management approach, necessitating careful evaluation to align with specific investment goals.
Read the full article to explore the benefits of UK money market funds in the current interest rate environment.






