Skip to main content
Financially Fit & FabuIous - Investing in Stocks and Money Market instruments - Part 2 - All Woman - Jamaica Observer
All Woman

Financially Fit & FabuIous - Investing in Stocks and Money Market instruments - Part 2

WELCOME to the second in our two part series on Investing in Stocks and Money Market Instruments.

Both issues are focused on new ways for you to increase your cash flow through investing. We are examining two investment options which will allow you to passively grow income, which means, your money is virtually working for you while you sleep.

Our first article was focused on investing in stocks.  In this issue, we will look at investing in money market instruments.

Money Market investments

Money market instruments, also sometimes offered in the form of collective investment arrangements, are made up of financial instruments with a maturity of up to one year.

Money Market Instruments are issued by the Government and some by licensed securities dealers with various maturities, for example, 30-day and 180-day issues.

The most common Money Market instruments in Jamaica are treasury bills, commercial paper, and repurchase agreements.

If you buy this Money Market instrument through your investment advisor or broker, you have become a lender to the entity issuing the security, whether that is a company or government.

These instruments or securities are comparatively low-risk loans because the term or pay back period on the instruments is short and the credit rating of the issuer is generally good. This means they are highly likely to repay you.

Liquid investment

Money Market instruments are a good product to invest in if you know you will need your savings/cash back in one year or less. The maturity is short, and second, the instruments are generally easily sold to others.

The disadvantage is that what you earn on this investment is less than other products because the risk is lower than longer-term interest-bearing securities. Still, you will definitely earn more than parking your savings in a regular savings account.


We are sure you are very familiar with the phrase “do not put all your eggs in one basket.” It means that when one basket falls and eggs break, you should have another. Diversification has a similar meaning.

In the context of investing, select stocks from different industries. Money Market instruments are a good way to reduce risk, maximise returns and formulate a strong diversification strategy.

Get professional advice

We recommend that you talk with your a Scotia Investments advisor about your overall financial goals, your risk appetite and, time horizons so they can customize a portfolio that suits you and your needs. While you could make significant gains from investing in stocks, you could make losses as well. But investing in stocks with a long term view in mind as well as a diversified portfolio, are important in mitigating the downside. Also consider the investing in Money Market Instruments and discuss how these can help you achieve your financial goals over time. Invest Early, Invest Regularly, Diversify and Stay Invested.

Shynelle Anderson is a licensed Investment Advisor from Scotia Investments Jamaica Limited.




1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper · your email addresses will not be published.

2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.

3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.

4. Please do not write in block capitals since this makes your comment hard to read.

5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed:

6. If readers wish to report offensive comments, suggest a correction or share a story then please email:

7. Lastly, read our Terms and Conditions and Privacy Policy

comments powered by Disqus
Trending Stories
Infuriating in-laws
29 November 2021
The undesirables
29 November 2021
29 November 2021

Sorry, no question available