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Investors typically allocate their monies to a portfolio of equities, bond and even real estate exposure (e.g. through REITs). Spare monies are usually parked in the savings account and/or fixed deposits. Noticeably, more people are looking to better the returns of these monies sitting in the bank earning miserable rates from as low as 0.10%pa (DBS Savings).
Hence, money market funds are typically a safe option for this need. Some examples are LionGlobal SGD Money Market fund & Philips Money Market fund. The SGD denominated money market unit trusts invest in assets generating returns similar to short term SGD interest bearing deposits. Credit risk is minimised as underlying assets are predominantly SGS T-bills and investment grade commercial papers. The short duration (on average <1yr maturity) reduces interest rate re-investment risk and keeps the NAV stable. Currency risk is also not an issue since returns from assets are in SGD. Read more...[caption id="attachment_5034" align="alignright" width="150" caption="Photo by delphaber"][/caption]
Investors typically allocate their monies to a portfolio of equities, bond and even real estate exposure (e.g. through REITs). Spare monies are usually parked in the savings account and/or fixed deposits. Noticeably, more people are looking to better the returns of these monies sitting in the bank earning miserable rates from as low as 0.10%pa (DBS Savings).
Hence, money market funds are typically a safe option for this need. Some examples are LionGlobal SGD Money Market fund & Philips Money Market fund. The SGD denominated money market unit trusts invest in assets generating returns similar to short term SGD interest bearing deposits. Credit risk is minimised as underlying assets are predominantly SGS T-bills and investment grade commercial papers. The short duration (on average <1yr maturity) reduces interest rate re-investment risk and keeps the NAV stable. Currency risk is also not an issue since returns from assets are in SGD. Read more...
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Investors typically allocate their monies to a portfolio of equities, bond and even real estate exposure (e.g. through REITs). Spare monies are usually parked in the savings account and/or fixed deposits. Noticeably, more people are looking to better the returns of these monies sitting in the bank earning miserable rates from as low as 0.10%pa (DBS Savings).
Hence, money market funds are typically a safe option for this need. Some examples are LionGlobal SGD Money Market fund & Philips Money Market fund. The SGD denominated money market unit trusts invest in assets generating returns similar to short term SGD interest bearing deposits. Credit risk is minimised as underlying assets are predominantly SGS T-bills and investment grade commercial papers. The short duration (on average <1yr maturity) reduces interest rate re-investment risk and keeps the NAV stable. Currency risk is also not an issue since returns from assets are in SGD. Read more...
