Cash fund
Each type of fund has its own set of risks and rewards, as shown below:
- Money market funds are low-risk, short-term investments that provide returns in the form of monthly distributions.
- Equity funds invest in public companies for long-term growth; they may also concentrate on companies in specific industries such as gold, energy, or finance.
- Fixed income funds provide consistent cash flow while preserving capital, they typically distribute interest income and capital gains.
My preferred fund is still an MMF, which is a low-risk fund that offers investors short-term liquidity as well as a consistent and conservative return. I started investing in $Fullerton SGD Cash Fund(SG9999005961.MF$ and $CSOP USD Money Market Fund(SGXZ96797238.MF$ , and buying into and redeeming from the fund is simple and quick. 10k invested = $1 return. While the MMF in Cash Plus are considered relatively safe, a floating return on certain days is always possible. Regardless, these funds have never had a negative monthly return, so they are considered stable. This cash plus has the advantage of having funds available immediately, making it ideal for funds that are idle and waiting for opportunities. When there is an opportunity to invest in the market, we can redeem the fund and it will be immediately available for investment.
Currently, moomoo points can be used for cash fund coupon redemption - 2 types of coupons available here. It can be used once the subscription amount reaches US$3,740.40/S$5,000.00, with a maximum cashback amount of US$3.74/S$5.00. Another one is that it can be used once the subscription amount reaches US$14,961.63/S$20,000.00, with a maximum cashback of US$14.96/S$20.00. This is a big WOW for all investors! ![]()
Yes, another energy fund $BGF World Energy Fund(LU0368265418.MF$ I purchased is now making money! Previously, it has been quite volatile since December. I intend to hold for the long term in order to diversify into the energy sector. Given the current market environment, investors are looking for temporary parking spots for their funds. The traditional method of "waiting out" a volatile market is to park our money in an MMF. I intend to invest more money in these funds because MMFs are low-risk, short-term investments with consistent earning. ![]()
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