If inflation drops, does the nav of this cash fund drop?
as titled, since the nav is quite high now
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Just Born : Also depends on how many units you hold for this fund and the price when you purchase this fund. Even if NAV drop, as long it never drop below your buy price, still have some earnings.
wkwb : The fund invests in fixed deposits. Typically short of a default by a bank which the fixed deposits are placed, NAVs should keep going up.
Inflation affects rates which central banks reference when setting rates, but unlikely rates will go negative anyway (for Singapore).