My stories on SmartSave

SmartSave allows us to deposit and withdraw idle funds anytime and anywhere, allowing our cash to earn more money while lying idle. This is a feature that I personally value when I opened this account, as my investment strategy dictates that I will be holding cash during certain specific time periods. During these times, the money market fund is my best option. Although the returns it brings may not be high, as a responsible investor, I cannot afford to miss out on such an opportunity for super-low-risk investment.

The leaders of moomoo should have recognized the advantages and prospects of money market funds. Now, the money market fund is more like a super wallet, and more importantly, Futu has extended the original attributes of the money market fund with SmartSave, making it a quasi-savings with certain payment capabilities, and it is completely free for T+0 transactions.

As far as I know (there may be other operations that I am not aware of), the automatic subscription and redemption function of the money market fund can be used for:

1、Direct purchase of stocks

2、Direct subscription for IPOs

3、Automatic debt repayment

4、Purchase of other funds

Based on my actual situation, when the first method is used for the direct purchase of stocks, the amount will be directly credited to the cash account, and no financing interest will be generated during the period, which is no different from idle cash. Of course, we can also redeem first and then purchase, and the time difference is only a few seconds.

For the second scenario, I haven't had any practical experience because I was heartbroken from losing money and paying a lot of fees after multiple failed attempts at subscribing to new stocks. If we could reduce the fees by putting the money into a money market fund, I think this would be a great innovation. When subscribing directly to new stocks, the available capital is still accounted for and no financing interest is incurred during the period. It can also be redeemed one day in advance to ensure a successful subscription.

As for the third scenario, automatic debt repayment, I have yet to encounter a situation where it's worth financing. So I am also looking forward to the day when it happens! From a practical point of view, automatic debt repayment is also a major highlight, as it can effectively avoid the high interest and penalties incurred from financing and debt due to negligence.

For the fourth scenario, using it to purchase other funds. This is actually very similar to the first scenario, where we treat the money market fund as "currency" for paying other funds, with a direct backend conversion to simplify our operations.