Conservative approach in 2023/24

With a conservative approach, I invested in MMF (Fullerton SGD Cash Fund). Up to now, Moomoo Cash Plus,  has been generating positive returns consistently, however, with limited upside expectedly. Fortunately, by participating actively in moomoo offline events and depositing with the generous 5.8% interest promotion, it was rather rewarding - earning extra payout from the cash coupons. More importantly, cash plus provides a competitive return for my idle cash while still providing a high degree of liquidity. All in all, I find this fund performance is in line with the interest rate environment we are in.

My investment plan in 2024 would still remain cautious - stay patient and be selective. Further adjustments will be necessary in a world of greater growth volatility, higher capital costs, and geopolitical instability. With a still-too-high inflation and slowing global growth, I will continue to look for short term investment goal opportunities in fixed income investment (MMF), of which should be in for another good year as its popularity are expected to attract institutional money therefore achieving strong performance. For such a cash management investment product, the stability of returns is of utmost importance to me. In this aspect, the daily returns from  moomoo cashplus have been very satisfactory. So far, so good!

But, the not so good news is that if Fed decided to cut rates several times next year, do expect returns on MMF funds to drop significantly, making it less attractive. It is expected to happen as soon as March. And that is the flip side of the coin, one should be well awared of.

Thank you for your reading time.  Hereby, I wish everyone a prosperity & lucky dragon🐉year , filled with happiness, good health, and financial success in 2024...🐲 Huat Ah 🤑 💰 🥳