Money Market Fund in Singapore

What Is a Money Market Fund?

A money market fund is a type of mutual fund that invests in short-term fixed-income financial products that are highly liquid, such as government bonds, cash, cash equivalents, and debt-based securities. Money market funds provide investors with a relatively safer way to invest while also providing higher liquidity. Money market funds are often used by investors as a place to park cash that they do not need immediately but may need soon.

For example, if you are saving up for a down payment for properties or cars, you could invest that money in a money market fund and know that it will be there when you need it. Money market funds are not without risk, however.

A money market fund is essentially a mutual fund that you invest in, and the value of the issued shares can fluctuate. Nevertheless, they are widely considered a safer form of investment and generally serve as a more conservative way to invest.

Properties of Money Market Funds in Singapore

While other mutual funds try to grow your wealth, money market funds focus on protecting your wealth instead. Given that money market funds are generally more conservative in nature, a majority share of their portfolios will be allocated to cash or cash equivalents.

For instance, UOB's United SGD Money Market Fund allocates 74.34% of its funds to cash, while the remaining are distributed among different sectors such as industrials, utilities, real estate, government, financials, and consumer staples.

Best Time to Invest in Money Market Funds

Money market funds are expected to act as a hedge against inflation. They are a favourite among Singaporean investors, as seen from how the average investor on moomoo allocated about 70% of their fund portfolios to them.

During periods of high inflation, money market funds are generally expected to generate higher yields due to the returns on holding bonds, commercial bills, and debt-based securities increasing as interest rates rise. Hence, investing in money market funds when interest rates are high can serve as an effective and sensible investing decision that can insulate your wealth against inflation.

moomoo Cash Plus

Following that, we have moomoo Cash Plus campaign, which allows you to grow your money in a relatively safer manner while also providing competitive yields. The campaign has a special promotion to enjoy a guaranteed 5%* per annum return reward for three months. The minimum subscription for this promotion is S$100, and you can invest up to a maximum of S$10,000. You will be able to monitor your investments in real-time and watch your investment grow each day.

By choosing to participate in this campaign, you can put your idle cash to work, which will help you to grow and preserve your wealth. After three months, you can choose to leave your money in the money market fund to earn normalised rates which has generated approximately 2.5%^ p.a. returns. Due to its more conservative selection of financial products, it has not generated a monthly negative return to date*.

Click here to learn more about how moomoo Cash Plus can help you start putting up a fight against inflation.

*Moomoo SG guarantees the 5% p.a. (annualised percentage) return rewards. With a max subscription of S$10,000 into 5% p.a. return reward, users will invest into a base money market fund of their choice, and moomoo SG will make up for the difference to ensure that eligible users enjoy a guaranteed return of 5% p.a. on their principal subscription. With a max subscription of S$10,000, users will receive a total of S$ 123 after 3 months.

^Note: The data is accurate as of 24 August 2022 and is derived from the past performance of the money market fund on moomoo cash plus and should not be viewed as an indicator of future results.

*Note: The indicative 7-day annualized yield is derived from the past performance of money market funds on moomoo cash plus and should not be viewed as an indicator of future results. No content herein shall be considered an offer, solicitation or recommendation for the purchase or sale of securities, futures, or other investment products. All types of investments are risky and investors may suffer losses. All information and data on the website are for reference only. Past performance does not guarantee future results. This promotion does not take into account your investment objectives, financial situation, or financial needs. This advertisement has not been reviewed by the Monetary Authority of Singapore.