What can I use the USD cash investment option for?
How quickly can I switch my investments into cash?
Is it safe to put my money in cash?
USD as investment option
One of the investment options in Expert Mode is “Cash Available”. This is US Dollars (USD) and the most traded currency in foreign exchange markets. As such the USD is considered a benchmark currency and is readily accepted in transactions worldwide. It is a very stable currency.
Impact on my portfolio and returns
By adding USD cash to your portfolio you can lower the volatility or risk profile of your investment with Unhedged. Investors often convert or move some or all of their holdings into cash in times of uncertainty. This effectively lowers the risk but also lowers the potential for returns. As with any movement of funds in your portfolio you will be subject to the Buy/Sell spread.
Flight to cash
It is important to highlight though, that when markets are volatile and your investments are not performing well, the human instinct is to seek safety. This might mean reducing your investment exposure. Investors often make emotional decisions at these times – they sell when prices are low and may miss out on the benefits of cheaper stock. Our algorithms don’t experience fear or herd mentality. They analyse the market conditions, evaluate history and determine scientifically whether it makes sense to take on more or less risk.
Having your funds in cash is safe, about as safe as you can get. The value will fluctuate as all currencies do. You may lose or make some money when you withdraw funds as the USD will be converted back to Australian dollars (AUD). The price at which you moved from AUD to USD when you invested money into the fund will determine this.
How to invest
You can switch your investments into cash at any time. This can either be done via the app, when you change your allocation or by contacting our team via email@example.com. It will take one business day to take effect.
Links to related articles:
Use Expert Mode
Impact of Buy/Sell spread
Information contained here is prepared by Unhedged Pty Ltd ACN 646 421 730 (AR 001288751) an authorised representative of Cache Investment Management Pty Ltd ACN 624 306 430 AFSL 514 360. Units in the Unhedged Fund are issued by Melbourne Securities Corporation Limited (ACN 160 326 545 AFSL 428 289). All information is general information only and doesn’t take into consideration your personal circumstances, financial situation or needs. Before making a financial decision you should understand the risks and read the relevant PDS and TMD and consider whether the product is right for you and seek advice if necessary. Any information contained here may have been automatically generated by an algorithm based on raw data inputs and has not been independently verified and is subject to change. Past performance is not indicative of future performance. Unhedged Fund APIR Code: UPL9838AU International Securities Identification Number (ISIN): AU60UPL98384. Copyright (C) 2022 Unhedged. All rights reserved.
Updated on: 09 / 05 / 2022