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DIY investor: Weighed down by cash

"We can shuffle portfolios of shares, bonds and funds in a second, but managing cash, the essential fuel of every investment idea, remains cumbersome"

By Andy Davis   February 2017

Last summer, Paul Lewis of the BBC’s Moneybox programme wrote a provocative article arguing that since 1995, simply moving your cash each January into the best-buy deposit account would have mostly produced a better performance than investing it in a FTSE 100 tracker fund. Whatever you think of this comparison, Lewis’s advocacy of “active cash”—managing bank deposits to generate the highest returns rather than leaving them where they are regardless of the interest rate—is worth following, particularly now that decent rates are so hard to find.

The problem is that…

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