Cash Plus Returns
With the stock market being more volatile and interest rates rising, many have decided to keep more cash. $Fullerton SGD Cash Fund(SG9999005961.SG$ is a good vehicle for parking idle funds for the following reasons:
1) The risk of losing the capital is quite low as the assets are mainly SGD bank deposits with a maturity date of less than 1 year and MAS bills. To be able to call itself a Cash Fund means the placement of funds is restricted to “eligible deposits” by “eligible financial institutions” according to the definition of MAS. Seviora Group which is a wholly-owned subsidiary of Temasek Holdings owns 51% of Fullerton. Income Insurance owns 49% of Fullerton.
2) I like that there is no risk of foreign currency.
3) The return is close to T-bills. This fund has low fees compared to other similar funds.
4) It is flexible. One can redeem the funds anytime (T+2 working days to withdraw) and moomoo allows the money to be used immediately to trade stocks in the Singapore market.
I think the Feds will increase the interest rate by another 25 basis points this year. While high interest rates exact a cost on the price of growth stocks and REITS and increase the cost of borrowing, we can enjoy the benefits while they last with Cash Plus.
Note:
- Fullerton SGD Cash Fund is a unit trust and not a bank deposit although most of the underlying assets in the Fullerton fund are SGD bank deposits and MAS bills; it should be pretty safe (though not zero risk). Under MAS rules, clients’ funds and assets are segregated from the stockbroker’s money and assets. If you invest in a unit trust, the assets of the unit trust are held separately on trust by a trustee appointed by the respective fund houses.
- The actual value of your holdings is the number of units you buy when you subscribe (amount invested divided by the NAV at the point of subscription as shown in your moomoo statements) x current NAV so subtract the amount you have invested from that to arrive at your total return. 10K will give around S$1 of return a day at the current annualised rate of return. The rate of return will fluctutate as the interest rate environment changes. The daily revenue is not locked in unless you redeem the units.
Disclaimer: The above is sharing of my opinion and personal experience. It is not financial advice. Please do your due diligence and consult your financial adviser before doing any investment.
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102785019 : the US CSOP USD Money Market Fund offer better rate?
What's yr opinion?
phady05 : The recoil has been low recently
Flying_Cat 102785019: if you think your benefits can out risk the exchange rate you can proceed.
102785019 Flying_Cat: thanks
DadacaiOP 102785019: The return may be better but USD may depreciate some more. I would rather not take the risk.
DadacaiOP phady05: @phady05 马来西亚是不是可以开户了？我看到有兑换活动。moomoo - Discover US Investment Opportunities Ahead of the Curve
102450082 : How do I find the cyan chart above?
DadacaiOP 102450082: Swipe your finger to the left to find this icon.
102450082 :
ahleepapa : USD will nt depreciate
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