Is your money market fund still the best place for your banknotes?

📈💸 If you’ve been keeping your savings in a money market fund over the past year, you’ve been doing well. three-year bank certificate

Before we get into that — a quick refresher on how money market funds work last covered them Money Matters

What a money market fund actually does

A money market fund pools money from thousands of investors and deploys it into short-term, low-risk debt instruments

What you own is not the T-bill itself. You own units in the fund, and the value of those units rises gradually as the underlying instruments generate income.

Egypt’s investment fund industry was an EGP 316 bn market toward the tail-end of 2025 — it’s grown exponentially since. EGP 411 bn EGP 471 bn

Money market funds remain the dominant category

But are money market funds worth it in the long run?

The CBE has cut rates by 825 basis points since April 2025 the hold to continue through 3Q

Here’s why that matters for money market fund holders: directly tied to prevailing T-bill rates

A money market fund holds very short-term instruments

A fixed-income fund holds longer-duration instruments

What this means for you

If you need liquidity — an emergency buffer, banknotes you might need in the next three to six months — a money market fund remains the right tool. three-year fixed CD