Moomoo Cash Plus Fund P/L Round #3 Review

My view on the MCPF outlook in Q3 and Q4 2024:
1. Fed rate cut in September may affect the return of MCPF negatively. Short term funds usually have an inverse relationship with interest rates. Hence more cash may flow to stocks and other assets with higher return.
2. But the trend of MCPF returns going down is gradual. Market uncertainty e.g. us recession or geopolitical tension may encourage investors to continue to park their money in MCPF for stable return.
3. MCPF is going to be a core in my investment portfolio because it is better than most high interest savings deposits. Here are why:
• Return is giving positive earnings daily (so far) and has higher yield
• Flexibility to invest in stocks when the opportunity arises. After redeeming, Moomoo allows me to buy other assets like stock and options immediately (T+0).
• Investing my money in MCPF gives me the leverage to buy/sell options for short term investment - liquidity advantage.
4. Subscribing to Moomoo cash plus fund enables me to participate in promotion to get stock/fund cash coupons. Like the recent Carnival game, we can get extra chances by subscribing to MCPF.
Bottom line
MCPF is a short term investment and one of the risks is the principal is not guaranteed - one critical difference from the high interest saving. There are many similar mutual funds which claim to have stable return and yet higher returns than MCPF. If you wish to invest, please do so within your means  and DYODD. Disclaimer: The above is not financial advice.