Cash doesn't grow and is generally devalued through inflation. A diverse portfolio is better protected against inflation, cash ought to make up some of a diver

Cash doesn't grow and is generally devalued through inflation. A diverse portfolio is better protected against inflation, cash ought to make up some of a diverse portfolio but not a large proportion of it. Bonds are a better way of having cash-denominated assets since they still have returns while not being particularly risky (in the general case). Cash is still useful however because it is easy to access quickly without losing value to having to sell quickly and doesn't incur fees.