Account Info
Log Out
English
Back
Download
Log in to access Online Inquiry
Back to the Top
avatar
doctorpot1 wrote a post · Sep 22, 2022 08:35

I choose "guaranteed" supernormal profit over risk while waiting for the dust to settle

TLDR: Getting up to 20% annual returns on low risk instruments by using Moo Moo fund coupon with $Fullerton SGD Cash Fund (SG9999005961.MF)$. That is better return than $S&P 500 Index (.SPX.US)$, $Dow Jones Industrial Average (.DJI.US)$, $Nasdaq Composite Index (.IXIC.US)$ and $FTSE Singapore Straits Time Index (.STI.SG)$.
Story time
In this volatile time, where we are experiencing numerous black swan events and there are so much more uncertainties ahead, investors prefers to take less risk. In this current market, the risk reward equation is going haywire. Even investment grade bonds are not safe as when interest rate rises people demand higher returns on bonds which causes the bond price to fall.
Take for example, $Astrea VI3%B310318# (6AZB.SG)$ bond that is backed by $Temasek Holdings (LIST2536.US)$. This bond is investment grade yet it is trading at a discount because no one wants a 3% return anymore. Every investor is expecting higher yield such as >4% that can be gotten from $Astrea7A1 4.125%320527# (V7AB.SG)$bond.
It is very difficult to find low risk investment that provides high rewards. But in $Futu Holdings Ltd (FUTU.US)$ Moo Moo there is a little golden nugget that gives a "low risk, high reward". That is using Moo Moo's 10 to 20% fund coupon and using it on $Fullerton SGD Cash Fund (SG9999005961.MF)$. This combination give you a supernormal yield on a investment grade money market fund.
I choose "guaranteed" supernormal profit over risk while waiting for the dust to settle
$Fullerton SGD Cash Fund (SG9999005961.MF)$ never had a negative return since its inception in 2009, and it does looks like a safe fund that gives us tiny returns. However, if we use Moo Moo's fund coupon on it, we will get "supernormal" yield of 10%, 15% and even 20% for a few days. Do note that the 10% yield is an annual yield, not daily yield. So unless you have enough coupons to keep using for 365 days, otherwise the yield is pro-rated into daily yield. However, having the opportunity of getting such high yield, even though it is only for a few days, is still amazing.
So once the fund coupon is used up, I just withdraw all my money from the fund, and then put it in again to use the next coupon, to continue getting the high yield.
I choose "guaranteed" supernormal profit over risk while waiting for the dust to settle
Sadly, I only found out of this "hack" on 29 Aug 2022, because of that I had wasted the opportunity to use17 fund coupons which had expired . So right now I'm on my 5th fund coupon and still got 3 more coupons left to milk this supernormal profit in such uncertain times . I had gotten $25.07 in coupon reward, and $10.08 in funds capital gain in less than a month. Given that the median capital I put in to milk the coupon is about $5000, that is close to 1% return in a month.
I choose "guaranteed" supernormal profit over risk while waiting for the dust to settle
I choose "guaranteed" supernormal profit over risk while waiting for the dust to settle
That is some amazing returns while I'm saving up more capital to buy the dip when the time is right. So currently I only have 3 coupons left to use that will allow this supernormal yield to continue for another 8 days, so hope that Moo Moo will be giving more coupons so that I can continue this profitable strategy known as "milking Moo Moo coupon".
I choose "guaranteed" supernormal profit over risk while waiting for the dust to settle
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
1
15
+0
8
Translate
Report
109K Views
Comment
Sign in to post a comment
avatar
doctorpot1
Moo Contributor
crawled out of poverty, working towards FIRE!! (financial independence, retired early)
15KFollowers
109Following
17KVisitors
Follow